Entropy Technologies LP Acquires Shares of 63,608 BorgWarner Inc. (NYSE:BWA)

Key Points

• Entropy Technologies LP has acquired 63,608 shares of BorgWarner Inc., valued at approximately $1.82 million, marking its new position in the auto parts company.
• BorgWarner will increase its quarterly dividend to $0.17, resulting in an annualized yield of 1.8%, alongside a new stock buyback program authorized for up to $1 billion.
• Wall Street analysts project positive growth for BorgWarner, with several firms issuing upgraded price targets and a consensus rating of "Moderate Buy."

Entropy Technologies LP acquired a new stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The fund acquired 63,608 shares of the auto parts company's stock, valued at approximately $1,822,000.

Other large investors also recently bought and sold shares of the company. Global X Japan Co. Ltd. raised its position in BorgWarner by 133.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares in the last quarter. Manchester Capital Management LLC purchased a new stake in shares of BorgWarner during the 1st quarter worth $30,000. LRI Investments LLC lifted its stake in shares of BorgWarner by 1,515.0% during the 4th quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock worth $31,000 after purchasing an additional 909 shares during the last quarter. Meeder Asset Management Inc. increased its position in BorgWarner by 63.5% during the 1st quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after buying an additional 539 shares in the last quarter. Finally, Allworth Financial LP increased its position in BorgWarner by 123.1% during the 1st quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after buying an additional 793 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

BorgWarner Stock Up 3.6%

Shares of BWA stock traded up $1.44 on Wednesday, hitting $41.58. The stock had a trading volume of 2,922,065 shares, compared to its average volume of 2,169,468. BorgWarner Inc. has a 12-month low of $24.40 and a 12-month high of $41.67. The business has a 50 day moving average of $35.21 and a 200 day moving average of $31.59. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. The stock has a market cap of $9.00 billion, a price-to-earnings ratio of 44.23, a price-to-earnings-growth ratio of 1.21 and a beta of 1.10.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share 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 during the quarter, compared to analyst estimates of $3.56 billion. During the same quarter last year, the business earned $1.19 earnings per share. The company's quarterly revenue was up 1.0% on a year-over-year basis. As a group, analysts expect that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner declared that its Board of Directors has approved a stock repurchase program on Thursday, July 31st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

BorgWarner Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be given 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 annualized dividend and a yield of 1.6%. BorgWarner's payout ratio is presently 46.81%.

Insider Transactions at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 5,000 shares of BorgWarner stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $33.25, for a total transaction of $166,250.00. Following the transaction, the vice president directly owned 63,445 shares of the company's stock, valued at approximately $2,109,546.25. This trade represents a 7.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.45% of the stock is currently owned by insiders.

Analyst Ratings Changes

BWA has been the topic of a number of research reports. Barclays reissued 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. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Morgan Stanley increased their price target on BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Tuesday. Guggenheim lowered their price target on BorgWarner from $38.00 to $33.00 and set a "buy" rating on the stock in a research report on Tuesday, April 22nd. Finally, Robert W. Baird increased their price target on BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Six equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, BorgWarner currently has a consensus rating of "Moderate Buy" and a consensus price target of $39.64.

BorgWarner Company 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.