8,109 Shares in BorgWarner Inc. $BWA Purchased by Park Avenue Securities LLC

Key Points

• Park Avenue Securities LLC has acquired 8,109 shares of BorgWarner Inc. for approximately $271,000, marking a new position in the auto parts company.
• BorgWarner's dividend was increased to $0.17 per quarter, representing an annual yield of 1.5%, reflecting a raise from the previous dividend of $0.11.
• Wall Street analysts have generally rated BorgWarner positively, with price targets being raised and a consensus rating of "Moderate Buy" from 17 analysts.

Park Avenue Securities LLC purchased a new position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 8,109 shares of the auto parts company's stock, valued at approximately $271,000.

A number of other hedge funds have also added to or reduced their stakes in the company. LSV Asset Management grew its position in BorgWarner by 36.7% in the first quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock valued at $168,722,000 after acquiring an additional 1,580,935 shares during the last quarter. Millennium Management LLC grew its holdings in shares of BorgWarner by 144.7% during the 1st quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company's stock valued at $57,579,000 after purchasing an additional 1,188,466 shares during the last quarter. Leith Wheeler Investment Counsel Ltd. acquired a new position in BorgWarner during the 1st quarter worth approximately $28,989,000. Principal Financial Group Inc. increased its position in BorgWarner by 338.5% during the 1st quarter. Principal Financial Group Inc. now owns 1,085,149 shares of the auto parts company's stock worth $31,090,000 after purchasing an additional 837,668 shares in the last quarter. Finally, Public Sector Pension Investment Board lifted its stake in BorgWarner by 1,121.2% in the 1st quarter. Public Sector Pension Investment Board now owns 693,551 shares of the auto parts company's stock valued at $19,870,000 after purchasing an additional 636,757 shares during the last quarter. 95.67% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Morgan Stanley increased their price target on BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research note on Tuesday, August 12th. Zacks Research raised BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 12th. The Goldman Sachs Group upped their price objective on BorgWarner from $45.00 to $52.00 and gave the company a "buy" rating in a research note on Monday. UBS Group raised their price objective on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a report on Monday, July 14th. Finally, Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, BorgWarner presently has a consensus rating of "Moderate Buy" and an average target price of $42.79.

BorgWarner Trading Up 0.8%

BWA opened at $44.30 on Thursday. The firm has a market capitalization of $9.58 billion, a PE ratio of 47.12, a P/E/G ratio of 1.45 and a beta of 1.09. 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 Inc. has a fifty-two week low of $24.40 and a fifty-two week high of $44.70. The company's 50-day moving average is $41.57 and its 200 day moving average is $34.78.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating the consensus estimate 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 the consensus estimate of $3.56 billion. During the same quarter in the prior year, the company posted $1.19 earnings per share. The firm's revenue for the quarter was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, research analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were paid a $0.17 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $0.68 annualized dividend and a yield of 1.5%. This is a boost from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio is currently 72.34%.

BorgWarner declared that its Board of Directors has initiated a share repurchase plan on Thursday, July 31st that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at BorgWarner

In other BorgWarner news, Director Alexis P. Michas sold 8,772 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the sale, the director owned 78,903 shares of the company's stock, valued at $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 transaction, the vice president directly owned 55,945 shares in the company, valued at approximately $2,238,359.45. This represents a 4.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 31,272 shares of company stock valued at $1,263,318 in the last three months. Company 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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