Arete Wealth Advisors LLC Buys New Shares in BorgWarner Inc. $BWA

Key Points

• Arete Wealth Advisors purchased 19,144 BorgWarner shares worth approximately $1.04 million during the first quarter. Institutional investors and hedge funds collectively own 95.67% of the company.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating from 15 analysts and an average price target of $74.57; several firms recently raised their targets to as high as $95.
• BorgWarner exceeded quarterly expectations, reporting $1.24 in EPS versus $1.16 expected and $3.53 billion in revenue. However, insiders sold 67,500 shares worth about $4.31 million over the past 90 days.

Arete Wealth Advisors LLC purchased a new position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 19,144 shares of the auto parts company's stock, valued at approximately $1,039,000.

Other hedge funds also recently bought and sold shares of the company. Prosperity Bancshares Inc purchased a new position in shares of BorgWarner in the 4th quarter valued at about $37,000. Sound Income Strategies LLC increased its stake in shares of BorgWarner by 9,888.9% during the fourth quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock worth $42,000 after buying an additional 890 shares during the period. Torren Management LLC acquired a new stake in BorgWarner in the fourth quarter valued at approximately $48,000. Cedar Mountain Advisors LLC purchased a new position in BorgWarner in the first quarter worth approximately $55,000. Finally, UMB Bank n.a. grew its holdings in BorgWarner by 28.1% during the 4th quarter. UMB Bank n.a. now owns 1,709 shares of the auto parts company's stock worth $77,000 after acquiring an additional 375 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. The Goldman Sachs Group reissued a "buy" rating and issued a $84.00 price objective on shares of BorgWarner in a research report on Thursday, June 11th. JPMorgan Chase & Co. boosted their target price on shares of BorgWarner from $73.00 to $75.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. Wells Fargo & Company raised their price target on BorgWarner from $68.00 to $83.00 and gave the company an "overweight" rating in a research note on Tuesday, June 2nd. Wolfe Research reaffirmed an "outperform" rating and set a $95.00 price target on shares of BorgWarner in a report on Wednesday, June 3rd. Finally, UBS Group raised BorgWarner from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $61.00 to $95.00 in a research report on Wednesday, June 10th. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $74.57.

BorgWarner Price Performance

Shares of NYSE BWA opened at $62.10 on Thursday. The stock has a market cap of $12.74 billion, a P/E ratio of 36.75, a P/E/G ratio of 1.35 and a beta of 1.09. BorgWarner Inc. has a twelve month low of $34.27 and a twelve month high of $78.82. The stock has a 50 day moving average of $68.01 and a two-hundred day moving average of $59.39. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.16 by $0.08. The business had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The company's revenue for the quarter was up .5% compared to the same quarter last year. During the same period last year, the firm posted $1.11 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, research analysts forecast that BorgWarner Inc. will post 5.16 earnings per share for the current year.

Insider Buying and Selling at BorgWarner

In related news, VP Isabelle Mckenzie sold 3,500 shares of the firm's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $63.35, for a total transaction of $221,725.00. Following the transaction, the vice president owned 57,828 shares of the company's stock, valued at $3,663,403.80. This trade represents a 5.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Joseph F. Fadool sold 29,000 shares of the firm's stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $67.31, for a total value of $1,951,990.00. Following the transaction, the chief executive officer directly owned 405,964 shares in the company, valued at approximately $27,325,436.84. This represents a 6.67% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 67,500 shares of company stock valued at $4,310,115. Company insiders own 0.76% of the company's stock.

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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