Allianz Asset Management GmbH Sells 24,484 Shares of BorgWarner Inc. (NYSE:BWA)

Key Points

• Allianz Asset Management GmbH significantly reduced its holdings in BorgWarner, selling 24,484 shares and retaining only 8,015 shares, which are worth approximately $230,000.
• BorgWarner recently announced a $1.00 billion stock buyback plan and increased its quarterly dividend from $0.11 to $0.17, indicating confidence in its undervalued shares.
• Analysts have upgraded BorgWarner's stock ratings, with a consensus target price of $39.64 and several firms raising their price targets following positive quarterly earnings results.

Allianz Asset Management GmbH trimmed its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 75.3% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,015 shares of the auto parts company's stock after selling 24,484 shares during the period. Allianz Asset Management GmbH's holdings in BorgWarner were worth $230,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Global X Japan Co. Ltd. lifted its position in shares of BorgWarner by 133.4% in the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock worth $26,000 after purchasing an additional 523 shares during the period. LRI Investments LLC raised its stake in BorgWarner by 1,515.0% in the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock worth $31,000 after buying an additional 909 shares in the last quarter. Allworth Financial LP lifted its holdings in BorgWarner by 123.1% during the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock worth $41,000 after buying an additional 793 shares during the period. Resona Asset Management Co. Ltd. purchased a new stake in BorgWarner during the fourth quarter worth $45,000. Finally, Golden State Wealth Management LLC boosted its position in BorgWarner by 596.1% during the 1st quarter. Golden State Wealth Management LLC now owns 1,601 shares of the auto parts company's stock valued at $46,000 after acquiring an additional 1,371 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors.

Insider Buying and Selling at BorgWarner

In related news, EVP Tonit M. Calaway sold 27,736 shares of the firm's stock in a transaction on Monday, May 12th. The shares were sold at an average price of $32.83, for a total transaction of $910,572.88. Following the completion of the transaction, the executive vice president owned 214,521 shares of the company's stock, valued at $7,042,724.43. This trade represents a 11.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Isabelle Mckenzie sold 5,000 shares of the company's stock in a transaction 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 completion of the sale, the vice president directly owned 63,445 shares in the company, valued at approximately $2,109,546.25. The trade was a 7.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.63% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on BWA shares. Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Wells Fargo & Company boosted their target price on shares of BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a report on Friday. Piper Sandler increased their price target on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research report on Friday. Robert W. Baird lifted their price objective on shares of BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Finally, The Goldman Sachs Group raised shares of BorgWarner from a "neutral" rating to a "buy" rating and increased their target price for the company from $31.00 to $34.00 in a research report on Thursday, April 10th. Six research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, BorgWarner has an average rating of "Moderate Buy" and a consensus target price of $39.64.

BorgWarner Price Performance

NYSE BWA opened at $37.51 on Monday. The company has a market cap of $8.12 billion, a price-to-earnings ratio of 39.90, a PEG ratio of 1.61 and a beta of 1.10. 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's fifty day moving average price is $34.25 and its 200 day moving average price is $31.21. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $37.57.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data 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. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%. The business had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. During the same period in the prior year, the company earned $1.19 earnings per share. The company's revenue was up 1.0% on a year-over-year basis. As a group, equities research analysts forecast that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner declared that its Board of Directors has authorized a stock repurchase plan on Thursday, July 31st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to purchase up to 13.2% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its shares are undervalued.

BorgWarner Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be issued a $0.17 dividend. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.8%. BorgWarner's dividend payout ratio is 46.81%.

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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