Alps Advisors Inc. Buys New Position in BorgWarner Inc. $BWA

Key Points

• Alps Advisors opened a new BorgWarner position, buying 53,089 shares worth about $3.19 million in the third quarter. Institutional investors collectively own 95.67% of the company’s shares.
• BorgWarner reported quarterly earnings of $1.39 per share, beating the $1.25 consensus estimate, while revenue of $3.49 billion fell slightly short of forecasts and declined 2.9% year over year.
• The company authorized a $1 billion share-repurchase plan, covering up to 7.7% of outstanding shares. Analysts’ average rating is “Moderate Buy,” with an average price target of $79.

Alps Advisors Inc. purchased a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 53,089 shares of the auto parts company's stock, valued at approximately $3,191,000.

Other institutional investors have also made changes to their positions in the company. Clearstead Trust LLC bought a new stake in shares of BorgWarner during the 2nd quarter valued at $28,000. Ceredex Value Advisors LLC acquired a new stake in shares of BorgWarner during the 2nd quarter worth $40,000. William Mack & Associates Inc. acquired a new stake in shares of BorgWarner during the 3rd quarter worth $46,000. Fiduciary Financial Advisors bought a new position in shares of BorgWarner in the second quarter worth $49,000. Finally, Jones Financial Companies Lllp bought a new position in shares of BorgWarner in the second quarter worth $57,000. 95.67% of the stock is currently owned by institutional investors.

BorgWarner Trading Up 5.5%

BWA opened at $51.51 on Tuesday. BorgWarner Inc. has a twelve month low of $40.73 and a twelve month high of $78.82. The company has a fifty day moving average of $59.53 and a 200-day moving average of $60.61. The stock has a market cap of $10.34 billion, a PE ratio of 21.92, a price-to-earnings-growth ratio of 0.71 and a beta of 1.20. The company has a quick ratio of 1.12, a current ratio of 1.41 and a debt-to-equity ratio of 0.32.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The auto parts company reported $1.39 earnings per share for the quarter, beating the consensus estimate of $1.25 by $0.14. The company had revenue of $3.49 billion during the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a net margin of 3.36% and a return on equity of 19.61%. BorgWarner's revenue for the quarter was down 2.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.24 EPS. On average, sell-side analysts predict that BorgWarner Inc. will post 5.27 EPS for the current year.

BorgWarner announced that its Board of Directors has approved a share buyback plan on Wednesday, August 5th that permits the company to repurchase $1 billion in outstanding shares. This repurchase authorization permits the auto parts company to purchase up to 7.7% of its shares through open market purchases. Share repurchase plans are generally an indication that the company's management believes its stock is undervalued.

Insider Activity

In other news, CAO Amy Kulikowski sold 2,900 shares of the company's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total transaction of $198,940.00. Following the transaction, the chief accounting officer owned 9,725 shares in the company, valued at approximately $667,135. This represents a 22.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Rajesh Kalathur acquired 7,407 shares of the business's stock in a transaction dated Wednesday, August 19th. The shares were bought at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the transaction, the director directly owned 7,407 shares in the company, valued at approximately $500,639.13. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.76% of the company's stock.

Wall Street Analyst Weigh In

BWA has been the topic of several recent research reports. Royal Bank Of Canada cut their price objective on BorgWarner from $87.00 to $75.00 and set an "outperform" rating on the stock in a report on Friday, October 30th. Weiss Ratings reiterated a "hold (c+)" rating on shares of BorgWarner in a research report on Friday, September 25th. Wall Street Zen raised BorgWarner from a "hold" rating to a "buy" rating in a research note on Sunday, November 1st. Morgan Stanley lowered their price objective on BorgWarner from $95.00 to $89.00 and set an "overweight" rating for the company in a research report on Friday, October 30th. Finally, JPMorgan Chase & Co. lifted their price objective on BorgWarner from $75.00 to $85.00 and gave the stock an "overweight" rating in a research note on Monday, August 10th. Eleven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $79.00.

BorgWarner Profile

BorgWarner Inc is a global automotive supplier that develops and manufactures technologies for passenger vehicles, commercial vehicles and other applications. Its products support vehicles powered by internal combustion engines as well as hybrid and electric vehicles.

The company's offerings include turbocharging systems, transmission components, electric motors, power electronics, battery and thermal-management systems, and technologies that help control emissions. BorgWarner supplies automakers and commercial-vehicle manufacturers around the world, with operations serving markets across North America, Europe and Asia.

BorgWarner traces its corporate history to 1928, when several automotive suppliers combined to form Borg-Warner Corporation.

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