Arkadios Wealth Advisors Boosts Stock Position in BorgWarner Inc. (NYSE:BWA)

Key Points

• Arkadios Wealth Advisors increased its position in BorgWarner Inc. by 111.7%, acquiring an additional 14,319 shares, bringing its total holdings to 27,140 shares worth $778,000.
• Multiple institutional investors, including Dimensional Fund Advisors and Invesco Ltd., have boosted their stakes in BorgWarner, together owning approximately 95.67% of the company's stock.
• BorgWarner announced a quarterly dividend increase to $0.17 per share and a $1 billion stock buyback plan, reflecting management's belief that the stock is undervalued.

Arkadios Wealth Advisors grew its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 111.7% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 27,140 shares of the auto parts company's stock after purchasing an additional 14,319 shares during the period. Arkadios Wealth Advisors' holdings in BorgWarner were worth $778,000 as of its most recent filing with the SEC.

Other hedge funds have also recently bought and sold shares of the company. Global X Japan Co. Ltd. lifted its position in shares of BorgWarner by 133.4% during the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares in the last quarter. LRI Investments LLC increased its stake in BorgWarner by 1,515.0% in the 4th quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock valued at $31,000 after buying an additional 909 shares during the last quarter. Meeder Asset Management Inc. lifted its position in shares of BorgWarner by 63.5% during the 1st quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock worth $40,000 after buying an additional 539 shares in the last quarter. Allworth Financial LP boosted its stake in shares of BorgWarner by 123.1% in the 1st 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 last quarter. Finally, Resona Asset Management Co. Ltd. bought a new position in shares of BorgWarner in the fourth quarter valued at approximately $45,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

BorgWarner Price Performance

Shares of BWA stock traded up $0.17 on Wednesday, reaching $38.05. The company's stock had a trading volume of 1,776,083 shares, compared to its average volume of 2,897,604. BorgWarner Inc. has a 12-month low of $24.40 and a 12-month high of $38.50. The company has a market capitalization of $8.23 billion, a P/E ratio of 40.47, a PEG ratio of 1.14 and a beta of 1.10. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. The stock's 50 day simple moving average is $34.45 and its 200-day simple moving average is $31.30.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.15. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm had revenue of $3.64 billion for the quarter, compared to analysts' expectations of $3.56 billion. During the same quarter last year, the company posted $1.19 EPS. The business's quarterly revenue was up 1.0% on a year-over-year basis. As a group, equities analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner declared that its Board of Directors has approved a share buyback program on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

BorgWarner Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be given a dividend of $0.17 per share. This is a positive change 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%.

Insider Activity

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

Analysts Set New Price Targets

A number of analysts recently commented on the company. The Goldman Sachs Group upgraded BorgWarner from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $31.00 to $34.00 in a report on Thursday, April 10th. Bank of America raised their price target on shares of BorgWarner from $35.00 to $41.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Wells Fargo & Company lifted their price target on shares of BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Piper Sandler increased their price target on BorgWarner from $37.00 to $44.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Finally, JPMorgan Chase & Co. boosted their price objective on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday. Six analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, BorgWarner currently has an average rating of "Moderate Buy" and an average price target of $39.50.

BorgWarner 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.