Amundi Sells 79,799 Shares of BorgWarner Inc. $BWA

Key Points

• Amundi reduced its BorgWarner stake by 24.7% in the second quarter, selling 79,799 shares and retaining 243,162 shares valued at approximately $16.1 million. Institutional investors collectively own 95.67% of the company.
• BorgWarner exceeded quarterly expectations, reporting adjusted EPS of $1.42 versus the $1.28 consensus and revenue of $3.65 billion. The company also authorized a $1 billion share-repurchase program covering up to 7.7% of outstanding shares.
• Analysts maintain a generally positive view, with nine Buy ratings and six Holds, producing a “Moderate Buy” consensus and an average price target of $78.86 versus the reported share price of $66.69.

Amundi cut its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 24.7% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 243,162 shares of the auto parts company's stock after selling 79,799 shares during the quarter. Amundi owned about 0.12% of BorgWarner worth $16,143,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of BWA. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in BorgWarner during the 2nd quarter worth about $5,664,000. California State Teachers Retirement System grew its stake in BorgWarner by 6,262.3% during the second quarter. California State Teachers Retirement System now owns 15,870,795 shares of the auto parts company's stock worth $1,053,821,000 after purchasing an additional 15,621,343 shares during the period. AlphaGrep UK Ltd acquired a new stake in BorgWarner during the second quarter worth approximately $493,000. AXQ Capital LP bought a new stake in BorgWarner in the second quarter worth approximately $271,000. Finally, Nykredit A S acquired a new position in BorgWarner in the second quarter valued at approximately $462,000. Institutional investors own 95.67% of the company's stock.

BorgWarner Stock Performance

BWA opened at $66.69 on Friday. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67. The company's fifty day moving average price is $65.30 and its two-hundred day moving average price is $62.42. BorgWarner Inc. has a 1-year low of $40.50 and a 1-year high of $78.82. The company has a market cap of $13.58 billion, a price-to-earnings ratio of 33.35, a PEG ratio of 1.18 and a beta of 1.12.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The firm had revenue of $3.65 billion during the quarter, compared to analysts' expectations of $3.58 billion. During the same period last year, the company earned $1.21 earnings per share. The business's revenue was up .3% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, analysts expect that BorgWarner Inc. will post 5.2 EPS for the current fiscal year.

BorgWarner announced that its Board of Directors has approved a stock buyback plan on Wednesday, August 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to buy up to 7.7% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board of directors believes its stock is undervalued.

BorgWarner Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, September 1st. BorgWarner's payout ratio is currently 34.00%.

Insider Transactions at BorgWarner

In related news, CAO Amy B. Kulikowski sold 2,900 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total transaction of $198,940.00. Following the completion of the sale, 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 filing with the SEC, which can be accessed through this link. Also, Director Michael S. Hanley sold 5,000 shares of the stock in a transaction on Friday, August 28th. The shares were sold at an average price of $65.51, for a total value of $327,550.00. Following the completion of the sale, the director directly owned 34,313 shares of the company's stock, valued at $2,247,844.63. The trade was a 12.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.76% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. UBS Group raised shares of BorgWarner from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $61.00 to $95.00 in a research report on Wednesday, June 10th. Robert W. Baird set a $79.00 target price on shares of BorgWarner in a research report on Thursday, August 6th. The Goldman Sachs Group reissued a "buy" rating and set a $84.00 target price on shares of BorgWarner in a research note on Thursday, June 11th. Wolfe Research restated an "outperform" rating and issued a $95.00 price target on shares of BorgWarner in a report on Wednesday, June 3rd. Finally, Sanford C. Bernstein raised shares of BorgWarner to a "buy" rating in a research note on Wednesday, June 10th. Nine research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, BorgWarner presently has an average rating of "Moderate Buy" and an average target price of $78.86.

BorgWarner Company Profile

BorgWarner Inc NYSE: BWA is a global automotive technology company headquartered in Auburn Hills, Michigan. The company develops and supplies propulsion and drivetrain systems for passenger vehicles, commercial vehicles and off-highway applications, serving automakers and other transportation manufacturers worldwide.

Its product portfolio includes turbochargers, transmission systems, dual-clutch modules, four-wheel-drive systems, emissions technologies, and components for hybrid and internal-combustion vehicles.

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