6,318 Shares in BorgWarner Inc. $BWA Purchased by Kera Capital Partners Inc.

Key Points

• Kera Capital Partners Inc. acquired 6,318 shares of BorgWarner Inc. valued at approximately $212,000 during the 2nd quarter.
• Several hedge funds significantly increased their stakes in BorgWarner, with Global X Japan Co. Ltd. boosting its holdings by 133.4% during the first quarter.
• BorgWarner announced a dividend increase from $0.11 to $0.17 per share, along with a $1.00 billion stock buyback plan authorized by its Board of Directors.

Kera Capital Partners Inc. purchased a new position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 6,318 shares of the auto parts company's stock, valued at approximately $212,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in BWA. Global X Japan Co. Ltd. boosted its holdings in BorgWarner by 133.4% during the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock worth $26,000 after purchasing an additional 523 shares during the last quarter. Manchester Capital Management LLC purchased a new position in BorgWarner in the first quarter valued at about $30,000. Meeder Asset Management Inc. boosted its stake in BorgWarner by 63.5% in the first 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 boosted its stake in BorgWarner by 123.1% in the first 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 boosted its stake in BorgWarner by 97.9% in the first 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 hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on BWA shares. Wells Fargo & Company boosted their target price on shares of BorgWarner from $46.00 to $50.00 and gave the company an "overweight" rating in a research note on Tuesday, September 9th. Barclays reiterated an "overweight" rating and issued a $45.00 target price (up from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Piper Sandler boosted their price target on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Finally, Baird R W raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, BorgWarner has an average rating of "Moderate Buy" and a consensus price target of $41.21.

BorgWarner Price Performance

Shares of NYSE:BWA opened at $43.69 on Monday. The company's fifty day moving average price is $39.37 and its 200-day moving average price is $33.51. The firm has a market capitalization of $9.45 billion, a price-to-earnings ratio of 46.47, a PEG ratio of 1.44 and a beta of 1.09. BorgWarner Inc. has a one year low of $24.40 and a one year high of $44.45. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping 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 firm had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. During the same quarter in the prior year, the firm earned $1.19 EPS. The business's revenue for the quarter 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, equities research analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be paid a $0.17 dividend. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. BorgWarner's dividend payout ratio is currently 72.34%.

BorgWarner announced that its Board of Directors has authorized a stock 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 buy up to 13.2% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of the 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 owned 55,945 shares of the company's stock, valued at $2,238,359.45. This represents a 4.28% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Alexis P. Michas sold 8,772 shares of the stock in a transaction 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 sale, the director directly owned 78,903 shares of the company's stock, valued at $3,338,385.93. The trade was a 10.01% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 31,272 shares of company stock valued at $1,263,318. Corporate insiders own 0.45% of the company's stock.

About BorgWarner

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.

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