American Century Companies Inc. Purchases 60,382 Shares of BorgWarner Inc. $BWA

Key Points

• American Century Companies Inc. increased its stake in BorgWarner Inc. by 1.7% in Q1, acquiring an additional 60,382 shares for a total of 3,716,576 shares, valued at approximately $106 million.
• Multiple institutional investors are actively increasing their positions in BorgWarner, with Global X Japan Co. Ltd. leading with a 133.4% increase during the first quarter.
• BorgWarner recently raised its quarterly dividend from $0.11 to $0.17 per share, representing a yield of 1.6%, alongside announcing a $1 billion stock repurchase program.

American Century Companies Inc. grew its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 1.7% during the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 3,716,576 shares of the auto parts company's stock after purchasing an additional 60,382 shares during the quarter. American Century Companies Inc. owned 1.69% of BorgWarner worth $106,480,000 as of its most recent filing with the SEC.

Several other large investors have also modified their holdings of BWA. Bank of America Corp DE boosted its position in shares of BorgWarner by 91.9% in the fourth quarter. Bank of America Corp DE now owns 3,878,932 shares of the auto parts company's stock worth $123,311,000 after buying an additional 1,857,907 shares during the period. LSV Asset Management boosted its position in BorgWarner by 36.7% during 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 purchasing an additional 1,580,935 shares during the last quarter. Fuller & Thaler Asset Management Inc. raised its holdings in BorgWarner by 8,137.5% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 1,299,057 shares of the auto parts company's stock valued at $41,297,000 after buying an additional 1,283,287 shares in the last quarter. Leith Wheeler Investment Counsel Ltd. bought a new position in shares of BorgWarner in the first quarter worth about $28,989,000. Finally, Principal Financial Group Inc. increased its stake in shares of BorgWarner by 338.5% in the first 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 during the period. 95.67% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

BWA has been the topic of a number of recent analyst reports. Morgan Stanley lifted their price objective on BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 12th. UBS Group lifted their target price on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Barclays reissued an "overweight" rating and set a $45.00 target price (up from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Evercore ISI lifted their target price on BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research report on Monday, August 4th. Finally, Piper Sandler lifted their price objective on BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Ten equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $39.64.

Insider Activity at BorgWarner

In related news, VP Isabelle Mckenzie sold 2,500 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the transaction, the vice president owned 55,945 shares in the company, valued at $2,238,359.45. The trade was a 4.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Stefan Demmerle sold 15,000 shares of the company's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total transaction of $589,650.00. Following the sale, the vice president owned 234,040 shares of the company's stock, valued at $9,200,112.40. The trade was a 6.02% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 22,500 shares of company stock valued at $892,175 in the last 90 days. 0.45% of the stock is currently owned by corporate insiders.

BorgWarner Price Performance

Shares of BWA traded down $0.4040 on Thursday, hitting $41.8160. The company's stock had a trading volume of 2,362,638 shares, compared to its average volume of 2,855,772. The company has a market capitalization of $9.05 billion, a PE ratio of 44.49, a PEG ratio of 1.27 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. BorgWarner Inc. has a fifty-two week low of $24.40 and a fifty-two week high of $42.44. The company has a 50 day moving average price of $36.09 and a 200 day moving average price of $31.90.

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, topping the consensus estimate 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 the consensus estimate of $3.56 billion. During the same period in the previous year, the business earned $1.19 EPS. BorgWarner's revenue was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, research analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.6%. This is a boost from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is 72.34%.

BorgWarner announced that its Board of Directors has approved a stock repurchase plan on Thursday, July 31st that allows the company to buyback $1.00 billion in 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 generally a sign that the company's board believes its stock is undervalued.

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.