Nuveen LLC Acquires Shares of 501,828 BorgWarner Inc. $BWA

Key Points

• Nuveen LLC acquired 501,828 shares of BorgWarner Inc., valued at approximately $14.4 million, during the first quarter, giving it a 0.23% stake in the company.
• BorgWarner reported an EPS of $1.21 for the latest quarter, exceeding analyst expectations, and has provided a FY 2025 guidance range of 4.450-4.65 EPS.
• The company announced a dividend increase to $0.17 per share, reflecting a positive change from the previous dividend of $0.11, with a current yield of 1.6%.

Nuveen LLC bought a new stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 501,828 shares of the auto parts company's stock, valued at approximately $14,377,000. Nuveen LLC owned about 0.23% of BorgWarner at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. New York State Teachers Retirement System lifted its position in BorgWarner by 3.8% during the first quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock valued at $6,280,000 after purchasing an additional 7,977 shares during the last quarter. Avantax Advisory Services Inc. lifted its position in BorgWarner by 13.3% during the first quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock valued at $380,000 after purchasing an additional 1,555 shares during the last quarter. Sage Rhino Capital LLC bought a new stake in BorgWarner during the first quarter valued at approximately $235,000. Brown Advisory Inc. bought a new stake in BorgWarner during the first quarter valued at approximately $522,000. Finally, Alpha Omega Wealth Management LLC lifted its position in BorgWarner by 59.8% during the first quarter. Alpha Omega Wealth Management LLC now owns 25,190 shares of the auto parts company's stock valued at $722,000 after purchasing an additional 9,427 shares during the last quarter. 95.67% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president directly owned 55,945 shares in the company, valued at $2,238,359.45. This represents a 4.28% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Stefan Demmerle sold 5,000 shares of the company's stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total transaction of $202,500.00. Following the sale, the vice president owned 229,040 shares of the company's stock, valued at $9,276,120. This represents a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 22,500 shares of company stock valued at $892,175 over the last quarter. 0.45% of the stock is currently owned by company insiders.

BorgWarner Trading Up 3.0%

Shares of BWA traded up $1.2550 during mid-day trading on Friday, reaching $43.0950. The company's stock had a trading volume of 1,960,893 shares, compared to its average volume of 2,414,477. The stock has a market cap of $9.33 billion, a PE ratio of 45.85, a P/E/G ratio of 1.30 and a beta of 1.10. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $43.16. The company's fifty day moving average price is $36.46 and its two-hundred day moving average price is $32.06.

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

BorgWarner announced that its board has approved a share buyback plan on Thursday, July 31st that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the auto parts company to repurchase up to 13.2% of its stock through open market purchases. Stock buyback plans are often a sign that the company's leadership believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be issued a dividend of $0.17 per share. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a yield of 1.6%. BorgWarner's dividend payout ratio is currently 72.34%.

Wall Street Analyst Weigh In

BWA has been the subject of several research analyst reports. Robert W. Baird lifted their target price on shares of BorgWarner from $32.00 to $39.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. Evercore ISI boosted their price objective on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a report on Monday, August 4th. JPMorgan Chase & Co. boosted their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a report on Monday, August 4th. Barclays restated an "overweight" rating and issued a $45.00 price objective (up from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Finally, Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Ten 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, BorgWarner currently has a consensus rating of "Moderate Buy" and an average target price of $39.64.

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.