6,500 Shares in BorgWarner Inc. $BWA Purchased by Principle Wealth Partners LLC

Key Points

• Principle Wealth Partners LLC purchased 6,500 shares of BorgWarner Inc. during the second quarter, valued at approximately $218,000, as reported in a recent SEC filing.
• BorgWarner recently declared a quarterly dividend of $0.17 per share, marking an increase from the previous quarter's dividend of $0.11, which translates to an annualized yield of 1.5%.
• The company reported a Q2 earnings per share (EPS) of $1.21, surpassing analysts' expectations of $1.06, alongside revenue of $3.64 billion, indicating a 1% increase compared to the previous year.

Principle Wealth Partners LLC 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 6,500 shares of the auto parts company's stock, valued at approximately $218,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Jackson Thornton Wealth Management LLC purchased a new position in BorgWarner during the second quarter worth about $236,000. DekaBank Deutsche Girozentrale boosted its holdings in BorgWarner by 50.2% during the second quarter. DekaBank Deutsche Girozentrale now owns 48,466 shares of the auto parts company's stock worth $1,633,000 after purchasing an additional 16,198 shares during the last quarter. Chicago Partners Investment Group LLC purchased a new position in BorgWarner during the second quarter worth about $362,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in BorgWarner during the second quarter worth about $2,283,000. Finally, Foster & Motley Inc. purchased a new position in BorgWarner during the second quarter worth about $403,000. 95.67% of the stock is currently owned by hedge funds and other institutional investors.

BorgWarner Stock Performance

Shares of BWA stock opened at $43.97 on Friday. The stock has a market capitalization of $9.51 billion, a P/E ratio of 46.78, a PEG ratio of 1.61 and a beta of 1.09. 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's 50 day moving average is $43.26 and its 200 day moving average is $36.51. BorgWarner Inc. has a 12 month low of $24.40 and a 12 month high of $44.97.

BorgWarner (NYSE:BWA - Get Free Report) last announced 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. The company had revenue of $3.64 billion for the quarter, compared to analysts' expectations 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% compared to the same quarter last year. During the same period in the prior year, the company posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, sell-side analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner Increases Dividend

The firm also recently declared 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 represents a $0.68 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date was Tuesday, September 2nd. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio is currently 72.34%.

BorgWarner announced that its board has authorized a share buyback program on Thursday, July 31st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares buyback programs are often a sign that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Evercore ISI boosted their target price on shares of BorgWarner from $42.00 to $50.00 and gave the company an "outperform" rating in a research note on Monday, October 13th. Wells Fargo & Company boosted their target price on shares of BorgWarner from $50.00 to $54.00 and gave the company an "overweight" rating in a research note on Thursday, September 25th. Barclays boosted their target price on shares of BorgWarner from $45.00 to $55.00 and gave the company an "overweight" rating in a research note on Friday, October 10th. Finally, Baird R W upgraded shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $45.21.

Insider Activity at BorgWarner

In related news, VP Stefan Demmerle sold 5,000 shares of the company's stock in a transaction that occurred 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 directly owned 229,040 shares in the company, valued at approximately $9,276,120. This represents a 2.14% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction that occurred 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 sale, the vice president owned 55,945 shares in the company, valued at $2,238,359.45. The trade was a 4.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 31,272 shares of company stock worth $1,263,318. 0.45% of the stock is owned by corporate insiders.

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.

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