Pallas Capital Advisors LLC Purchases Shares of 16,922 BorgWarner Inc. $BWA

Key Points

• Pallas Capital Advisors LLC has acquired 16,922 shares of BorgWarner Inc., valued at approximately $567,000, indicating growing interest from institutional investors in the auto parts company.
• BorgWarner has initiated a $1 billion share buyback program, allowing repurchase of up to 13.2% of its stock, a sign that the company's board believes its stock is undervalued.
• The company recently increased its quarterly dividend to $0.17 per share, showcasing a commitment to returning value to shareholders, up from the previous $0.11.

Pallas Capital Advisors LLC purchased a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) during the second quarter, according to its most recent filing with the SEC. The fund purchased 16,922 shares of the auto parts company's stock, valued at approximately $567,000.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Global X Japan Co. Ltd. increased its holdings in BorgWarner by 133.4% in the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after acquiring an additional 523 shares during the last quarter. Manchester Capital Management LLC bought a new stake in BorgWarner in the 1st quarter valued at $30,000. Meeder Asset Management Inc. increased its holdings in BorgWarner by 63.5% in the 1st quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after acquiring an additional 539 shares during the last quarter. Allworth Financial LP increased its holdings in BorgWarner by 123.1% in the 1st quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after acquiring an additional 793 shares during the last quarter. Finally, Brooklyn Investment Group increased its holdings in BorgWarner by 97.9% in the 1st quarter. Brooklyn Investment Group now owns 1,480 shares of the auto parts company's stock valued at $42,000 after acquiring an additional 732 shares during the last quarter. 95.67% of the stock is currently owned by institutional investors.

BorgWarner Stock Up 0.6%

Shares of BWA traded up $0.28 during mid-day trading on Tuesday, hitting $43.83. The company's stock had a trading volume of 402,993 shares, compared to its average volume of 2,797,217. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The firm has a market capitalization of $9.48 billion, a price-to-earnings ratio of 46.64, a PEG ratio of 1.46 and a beta of 1.09. The company's 50-day moving average is $40.39 and its 200-day moving average is $34.13. BorgWarner Inc. has a 52-week low of $24.40 and a 52-week high of $44.70.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping the consensus estimate of $1.06 by $0.15. The firm had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. BorgWarner's revenue was up 1.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities research analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner declared that its Board of Directors has initiated a share buyback plan on Thursday, July 31st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were paid a dividend of $0.17 per share. This is a boost from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date was Tuesday, September 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. BorgWarner's dividend payout ratio (DPR) is presently 72.34%.

Insider Buying and Selling

In related news, Director Alexis P. Michas sold 8,772 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total transaction of $371,143.32. Following the completion of the transaction, the director owned 78,903 shares in the company, valued at $3,338,385.93. The trade was a 10.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the transaction, the vice president owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 31,272 shares of company stock worth $1,263,318 in the last 90 days. 0.63% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on BWA. Wells Fargo & Company boosted their target price on shares of BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a report on Tuesday, September 9th. Evercore ISI boosted their target price on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a report on Monday, August 4th. Barclays restated an "overweight" rating and issued a $45.00 target price (up from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Zacks Research upgraded shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Friday, September 12th. Finally, UBS Group boosted their target price on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $41.21.

BorgWarner Profile

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.