Alliancebernstein L.P. Decreases Position in BorgWarner Inc. $BWA

Key Points

• Alliancebernstein L.P. has reduced its stake in BorgWarner Inc. by 14.7%, now holding approximately 5.1 million shares valued at $146 million after selling 881,113 shares.
• In addition to Alliancebernstein's sell-off, several other institutional investors have increased their investments in BorgWarner, with Bank of America ramping up its stake by an impressive 91.9% during the previous quarter.
• BorgWarner has declared a dividend increase from $0.11 to $0.17 per share, which amounts to an annualized dividend of $0.68 and a yield of 1.6%.

Alliancebernstein L.P. lowered its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 14.7% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 5,100,083 shares of the auto parts company's stock after selling 881,113 shares during the quarter. Alliancebernstein L.P. owned 2.32% of BorgWarner worth $146,117,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. Global X Japan Co. Ltd. grew its stake in shares of BorgWarner by 133.4% during the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after buying an additional 523 shares during the last quarter. Manchester Capital Management LLC bought a new position in shares of BorgWarner during the first quarter valued at about $30,000. LRI Investments LLC grew its stake in shares of BorgWarner by 1,515.0% during the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock valued at $31,000 after buying an additional 909 shares during the last quarter. Meeder Asset Management Inc. grew its stake in shares of BorgWarner by 63.5% during the first 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 during the last quarter. Finally, Allworth Financial LP grew its stake in shares of BorgWarner by 123.1% during the first 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 during the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

BorgWarner Trading Down 1.3%

Shares of BWA traded down $0.55 during trading hours on Wednesday, reaching $43.14. 814,339 shares of the company traded hands, compared to its average volume of 2,812,290. The company's fifty day moving average price is $38.86 and its two-hundred day moving average price is $33.20. The company has a market capitalization of $9.33 billion, a price-to-earnings ratio of 45.85, a price-to-earnings-growth ratio of 1.34 and a beta of 1.09. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a 12 month low of $24.40 and a 12 month high of $44.45.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities research analysts predict 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. Investors of record on Tuesday, September 2nd will be paid a dividend of $0.17 per share. The ex-dividend date of this dividend is Tuesday, September 2nd. This is an increase 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 72.34%.

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

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Barclays reissued an "overweight" rating and issued a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Wells Fargo & Company raised their price target on shares of BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a report on Tuesday. Evercore ISI raised their price target on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a report on Monday, August 4th. Bank of America lowered shares of BorgWarner from a "buy" rating to a "neutral" rating and set a $46.00 price target on the stock. in a report on Wednesday. Finally, JPMorgan Chase & Co. raised their price target on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a report on Monday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $41.21.

Insider Buying and Selling

In related news, VP Stefan Demmerle sold 5,000 shares of the business's stock in a transaction dated 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 owned 229,040 shares of the company's stock, valued at $9,276,120. The trade was a 2.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Alexis P. Michas sold 8,772 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was 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 in the company, 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. Insiders have sold 31,272 shares of company stock valued at $1,263,318 over the last quarter. Corporate insiders own 0.63% of the company's stock.

BorgWarner 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.