Baker Ellis Asset Management LLC Takes Position in BorgWarner Inc. $BWA

Key Points

• Baker Ellis Asset Management LLC has acquired 12,790 shares of BorgWarner Inc., valued at approximately $428,000, during the second quarter.
• BorgWarner reported a quarterly earnings per share (EPS) of $1.21, surpassing analysts' estimates of $1.06, with revenue of $3.64 billion for the quarter.
• The company has declared a quarterly dividend of $0.17 per share, an increase from the previous dividend of $0.11, representing an annualized yield of 1.5%.

Baker Ellis Asset Management LLC acquired a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 12,790 shares of the auto parts company's stock, valued at approximately $428,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in BWA. Cetera Investment Advisers lifted its stake in shares of BorgWarner by 78.6% in the 4th quarter. Cetera Investment Advisers now owns 37,521 shares of the auto parts company's stock valued at $1,193,000 after purchasing an additional 16,518 shares during the period. Focus Partners Wealth lifted its stake in shares of BorgWarner by 40.1% in the 4th quarter. Focus Partners Wealth now owns 10,759 shares of the auto parts company's stock valued at $342,000 after purchasing an additional 3,080 shares during the period. Janus Henderson Group PLC lifted its stake in shares of BorgWarner by 0.4% in the 4th quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company's stock valued at $3,580,000 after purchasing an additional 501 shares during the period. Lazard Asset Management LLC lifted its stake in shares of BorgWarner by 14.0% in the 4th quarter. Lazard Asset Management LLC now owns 46,990 shares of the auto parts company's stock valued at $1,492,000 after purchasing an additional 5,787 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in BorgWarner by 55.9% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 175,888 shares of the auto parts company's stock worth $5,591,000 after buying an additional 63,033 shares during the period. 95.67% of the stock is owned by institutional investors and hedge funds.

BorgWarner Price Performance

Shares of NYSE BWA opened at $43.90 on Tuesday. The stock has a fifty day simple moving average of $39.55 and a two-hundred day simple moving average of $33.61. BorgWarner Inc. has a 1-year low of $24.40 and a 1-year high of $44.45. The firm has a market cap of $9.50 billion, a price-to-earnings ratio of 46.70, a price-to-earnings-growth ratio of 1.44 and a beta of 1.09. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The business had revenue of $3.64 billion for the quarter, compared to analysts' expectations of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm's quarterly revenue was up 1.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were given a dividend of $0.17 per share. The ex-dividend date was Tuesday, September 2nd. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a yield of 1.5%. BorgWarner's dividend payout ratio (DPR) is 72.34%.

BorgWarner announced that its board has authorized a stock buyback plan on Thursday, July 31st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on BWA shares. Barclays reaffirmed an "overweight" rating and set a $45.00 price target (up from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Evercore ISI upped their price target on BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. JPMorgan Chase & Co. upped their price target on BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research note on Monday, August 4th. Bank of America downgraded BorgWarner from a "buy" rating to a "neutral" rating and upped their price target for the stock from $41.00 to $46.00 in a research note on Wednesday, September 10th. Finally, UBS Group upped their price target on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research note on Monday, July 14th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $41.21.

Insider Buying and Selling at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the sale, the vice president owned 55,945 shares in the company, valued at $2,238,359.45. This trade represents a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the transaction, the director directly owned 78,903 shares in the company, valued at $3,338,385.93. This trade represents a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 31,272 shares of company stock worth $1,263,318 over the last 90 days. Corporate insiders own 0.63% of the company's stock.

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.

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