State of Wyoming Acquires Shares of 9,986 BorgWarner Inc. $BWA

Key Points

• The State of Wyoming acquired 9,986 shares of BorgWarner Inc. valued at approximately $286,000 during the 1st quarter.
• BorgWarner announced a quarterly dividend increase, from $0.11 to $0.17 per share, reflecting a strong commitment to shareholder returns.
• Wall Street analysts have positive forecasts for BorgWarner, with several raising their price targets and assigning ratings of "Buy" or "Overweight."

State of Wyoming bought a new position in BorgWarner Inc. (NYSE:BWA - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor bought 9,986 shares of the auto parts company's stock, valued at approximately $286,000.

Other hedge funds also recently bought and sold shares of the company. New York State Teachers Retirement System boosted its holdings in BorgWarner by 3.8% in the 1st quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock worth $6,280,000 after buying an additional 7,977 shares during the period. Avantax Advisory Services Inc. boosted its holdings in BorgWarner by 13.3% in the 1st quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock worth $380,000 after buying an additional 1,555 shares during the period. Sage Rhino Capital LLC bought a new position in BorgWarner in the 1st quarter worth $235,000. Brown Advisory Inc. bought a new position in BorgWarner in the 1st quarter worth $522,000. Finally, Alpha Omega Wealth Management LLC boosted its holdings in BorgWarner by 59.8% in the 1st quarter. Alpha Omega Wealth Management LLC now owns 25,190 shares of the auto parts company's stock worth $722,000 after buying an additional 9,427 shares during the period. Institutional investors own 95.67% of the company's stock.

Insider Transactions at BorgWarner

In other news, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction dated 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 directly 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 transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Stefan Demmerle sold 5,000 shares of the stock in a transaction dated Wednesday, August 13th. The stock was 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. The trade was 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 31,272 shares of company stock valued at $1,263,318 in the last ninety days. 0.45% of the stock is currently owned by corporate insiders.

BorgWarner Trading Up 0.3%

NYSE BWA traded up $0.15 during trading on Friday, hitting $44.00. The stock had a trading volume of 2,033,625 shares, compared to its average volume of 2,249,205. The stock has a 50 day simple moving average of $38.46 and a 200 day simple moving average of $32.98. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. The stock has a market capitalization of $9.52 billion, a price-to-earnings ratio of 46.81, a P/E/G ratio of 1.33 and a beta of 1.09. BorgWarner Inc. has a one year low of $24.40 and a one year high of $44.32.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share 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 firm had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter in the previous year, the firm posted $1.19 earnings per share. The company's revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Sell-side analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner declared that its board has authorized a stock repurchase program on Thursday, July 31st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its shares are undervalued.

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders 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. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.5%. BorgWarner's payout ratio is presently 72.34%.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Bank of America raised their price objective on BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Robert W. Baird upgraded BorgWarner from a "neutral" rating to an "outperform" rating and raised their price objective for the company from $41.00 to $52.00 in a research report on Wednesday. Morgan Stanley raised their price objective on BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research report on Tuesday, August 12th. JPMorgan Chase & Co. raised their price objective on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research report on Monday, August 4th. Finally, Wells Fargo & Company increased their price target on shares of BorgWarner from $45.00 to $46.00 and gave the company an "overweight" rating in a report on Friday, August 1st. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $40.57.

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.