3,774,361 Shares in BorgWarner Inc. $BWA Bought by Bank of America Corp DE

Key Points

• Bank of America acquired 3.77 million BorgWarner shares in the second quarter, valued at approximately $250.6 million and representing a 1.85% stake. Institutional investors collectively own 95.67% of the company.
• BorgWarner reported quarterly EPS of $1.42, exceeding the $1.28 analyst consensus, while revenue reached $3.65 billion. The company also authorized a $1 billion share buyback and pays a $0.17 quarterly dividend.
• Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $78.86 versus the reported share price of $62.27.

Bank of America Corp DE acquired a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 3,774,361 shares of the auto parts company's stock, valued at approximately $250,618,000. Bank of America Corp DE owned 1.85% of BorgWarner at the end of the most recent reporting period.

Other large investors have also bought and sold shares of the company. Louisiana State Employees Retirement System acquired a new position in BorgWarner in the first quarter valued at approximately $3,256,000. Cullen Capital Management LLC acquired a new position in shares of BorgWarner during the second quarter valued at about $4,937,000. LSV Asset Management increased its holdings in BorgWarner by 6.7% during the 4th quarter. LSV Asset Management now owns 6,446,541 shares of the auto parts company's stock worth $290,481,000 after purchasing an additional 402,887 shares in the last quarter. First Trust Advisors LP grew its holdings in BorgWarner by 73.8% during the first quarter. First Trust Advisors LP now owns 544,485 shares of the auto parts company's stock worth $29,544,000 after buying an additional 231,242 shares in the last quarter. Finally, Bessemer Group Inc. raised its holdings in shares of BorgWarner by 19.8% in the first quarter. Bessemer Group Inc. now owns 241,173 shares of the auto parts company's stock valued at $13,086,000 after purchasing an additional 39,787 shares during the last quarter. 95.67% of the stock is owned by institutional investors.

BorgWarner Price Performance

Shares of BorgWarner stock opened at $62.27 on Thursday. The business has a 50 day moving average of $65.19 and a 200 day moving average of $62.53. BorgWarner Inc. has a 52 week low of $40.50 and a 52 week high of $78.82. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. The company has a market cap of $12.68 billion, a PE ratio of 31.14, a P/E/G ratio of 1.12 and a beta of 1.12.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, beating analysts' consensus estimates of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The firm had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.58 billion. During the same quarter in the previous year, the firm posted $1.21 EPS. The company's revenue for the quarter was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, equities research analysts forecast that BorgWarner Inc. will post 5.2 earnings per share for the current year.

BorgWarner declared that its board has authorized a stock buyback program on Wednesday, August 5th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the auto parts company to purchase up to 7.7% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its shares are undervalued.

BorgWarner Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date was Tuesday, September 1st. BorgWarner's dividend payout ratio is 34.00%.

Insider Activity at BorgWarner

In other BorgWarner news, Director Michael S. Hanley sold 5,000 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $65.51, for a total transaction of $327,550.00. Following the sale, the director directly owned 34,313 shares in the company, valued at approximately $2,247,844.63. This trade represents a 12.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Rajesh Kalathur bought 7,407 shares of the stock in a transaction on Wednesday, August 19th. The shares were bought at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the purchase, the director directly owned 7,407 shares in the company, valued at approximately $500,639.13. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.76% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

BWA has been the subject of several research analyst reports. TD Cowen raised their target price on BorgWarner from $67.00 to $68.00 and gave the company a "hold" rating in a research report on Thursday, August 6th. Robert W. Baird set a $79.00 target price on BorgWarner in a research report on Thursday, August 6th. JPMorgan Chase & Co. boosted their price objective on shares of BorgWarner from $75.00 to $85.00 and gave the company an "overweight" rating in a research note on Monday, August 10th. Wolfe Research restated an "outperform" rating and set a $95.00 target price on shares of BorgWarner in a research report on Wednesday, June 3rd. Finally, Morgan Stanley increased their price target on shares of BorgWarner from $67.00 to $71.00 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Nine research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $78.86.

BorgWarner Profile

BorgWarner Inc NYSE: BWA is a global automotive technology company headquartered in Auburn Hills, Michigan. The company develops and supplies propulsion and drivetrain systems for passenger vehicles, commercial vehicles and off-highway applications, serving automakers and other transportation manufacturers worldwide.

Its product portfolio includes turbochargers, transmission systems, dual-clutch modules, four-wheel-drive systems, emissions technologies, and components for hybrid and internal-combustion vehicles.

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