Bank of America Corp DE Raises Holdings in BorgWarner Inc. $BWA

Key Points

• Bank of America increased its BorgWarner stake by 1.9% in the first quarter, purchasing 68,802 additional shares and bringing its holdings to 3.77 million shares, or 1.84% of the company. Institutional investors collectively own 95.67% of BorgWarner.
• Analyst sentiment is broadly positive: BorgWarner has a consensus “Moderate Buy” rating from 15 analysts, with an average price target of $74.57. UBS and Wall Street Zen recently upgraded the stock to “Buy.”
• BorgWarner reported quarterly EPS of $1.24, exceeding estimates of $1.16, while revenue reached $3.53 billion. The company also declared a quarterly dividend of $0.17 per share, representing a 1.1% yield.

Bank of America Corp DE increased its position in BorgWarner Inc. (NYSE:BWA - Free Report) by 1.9% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 3,774,056 shares of the auto parts company's stock after purchasing an additional 68,802 shares during the period. Bank of America Corp DE owned 1.84% of BorgWarner worth $204,780,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Prosperity Bancshares Inc purchased a new stake in BorgWarner in the fourth quarter valued at approximately $37,000. Sound Income Strategies LLC increased its holdings in shares of BorgWarner by 9,888.9% in the 4th quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock valued at $42,000 after acquiring an additional 890 shares during the period. Cedar Mountain Advisors LLC purchased a new stake in BorgWarner in the 1st quarter valued at $55,000. Torren Management LLC acquired a new stake in BorgWarner during the 4th quarter worth $48,000. Finally, Root Financial Partners LLC increased its stake in BorgWarner by 111.0% in the first quarter. Root Financial Partners LLC now owns 1,557 shares of the auto parts company's stock valued at $84,000 after purchasing an additional 819 shares during the period. Hedge funds and other institutional investors own 95.67% of the company's stock.

Analyst Ratings Changes

BWA has been the subject of several recent research reports. Wolfe Research reiterated an "outperform" rating and set a $95.00 target price on shares of BorgWarner in a research note on Wednesday, June 3rd. JPMorgan Chase & Co. increased their price objective on BorgWarner from $73.00 to $75.00 and gave the stock an "overweight" rating in a research report on Thursday, May 14th. Wall Street Zen upgraded BorgWarner from a "hold" rating to a "buy" rating in a research note on Saturday, June 27th. UBS Group raised BorgWarner from a "neutral" rating to a "buy" rating and boosted their target price for the company from $61.00 to $95.00 in a report on Wednesday, June 10th. Finally, Weiss Ratings upgraded BorgWarner from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, June 29th. 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 MarketBeat, BorgWarner presently has a consensus rating of "Moderate Buy" and an average target price of $74.57.

BorgWarner Trading Down 0.8%

Shares of BorgWarner stock opened at $62.80 on Wednesday. The firm has a market cap of $12.88 billion, a price-to-earnings ratio of 37.16, a price-to-earnings-growth ratio of 1.35 and a beta of 1.10. BorgWarner Inc. has a 52-week low of $37.59 and a 52-week high of $78.82. The company's 50-day simple moving average is $67.82 and its 200-day simple moving average is $59.83. The company has a quick ratio of 1.75, a current ratio of 2.13 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share for the quarter, beating analysts' consensus estimates of $1.16 by $0.08. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The company had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the previous year, the company earned $1.11 EPS. The firm's revenue for the quarter was up .5% compared to the same quarter last year. As a group, equities research analysts anticipate that BorgWarner Inc. will post 5.16 earnings per share for the current year.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Tuesday, September 1st. BorgWarner's dividend payout ratio (DPR) is currently 40.24%.

Insiders Place Their Bets

In other BorgWarner news, EVP Tania Wingfield sold 5,000 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $63.24, for a total value of $316,200.00. Following the completion of the sale, the executive vice president owned 35,365 shares of the company's stock, valued at approximately $2,236,482.60. This trade represents a 12.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Stefan Demmerle sold 5,000 shares of the business's stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total transaction of $325,000.00. Following the sale, the vice president owned 203,746 shares in the company, valued at $13,243,490. The trade was a 2.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 67,500 shares of company stock valued at $4,310,115 in the last three months. 0.76% of the stock is owned by corporate insiders.

About BorgWarner

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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