Bessemer Group Inc. Buys 39,787 Shares of BorgWarner Inc. $BWA

Key Points

• Bessemer Group Inc. increased its BorgWarner stake by 19.8% in the first quarter, buying 39,787 additional shares and bringing its holdings to 241,173 shares worth about $13.1 million.
• Institutional ownership remains very high, with 95.67% of BorgWarner stock held by hedge funds and other institutional investors; several other firms also recently added or opened positions.
• Wall Street sentiment is generally positive: analysts have a Moderate Buy consensus with an average price target of $74.57, while BorgWarner also beat quarterly EPS and revenue estimates in its latest earnings report.

Bessemer Group Inc. grew its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 19.8% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 241,173 shares of the auto parts company's stock after purchasing an additional 39,787 shares during the quarter. Bessemer Group Inc. owned approximately 0.12% of BorgWarner worth $13,086,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the company. Ethos Capital Management Inc. bought a new stake in BorgWarner in the fourth quarter worth $1,433,000. Sivia Capital Partners LLC purchased a new stake in BorgWarner during the second quarter valued at about $339,000. Northwestern Mutual Investment Management Company LLC bought a new position in shares of BorgWarner during the fourth quarter valued at about $2,157,000. CWA Asset Management Group LLC boosted its stake in shares of BorgWarner by 62.3% during the fourth quarter. CWA Asset Management Group LLC now owns 85,131 shares of the auto parts company's stock valued at $3,836,000 after purchasing an additional 32,672 shares during the period. Finally, Louisiana State Employees Retirement System bought a new position in shares of BorgWarner in the first quarter worth approximately $3,256,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. JPMorgan Chase & Co. lifted 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. Morgan Stanley upped their price target on BorgWarner from $60.00 to $67.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 27th. UBS Group upgraded shares of 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 report on Wednesday, June 10th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $84.00 target price on shares of BorgWarner in a research report on Thursday, June 11th. Finally, TD Cowen lifted their target price on shares of BorgWarner from $66.00 to $67.00 and gave the company a "hold" rating in a research note on Thursday, May 7th. Nine investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $74.57.

BorgWarner Stock Performance

Shares of BWA stock opened at $62.44 on Monday. The company has a market capitalization of $12.81 billion, a price-to-earnings ratio of 36.95, a price-to-earnings-growth ratio of 1.33 and a beta of 1.09. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13. BorgWarner Inc. has a one year low of $34.27 and a one year high of $78.82. The company's 50-day moving average is $68.07 and its 200 day moving average is $58.44.

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

BorgWarner Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Monday, June 1st. BorgWarner's dividend payout ratio is presently 40.24%.

Insider Buying and Selling at BorgWarner

In other news, CEO Joseph F. Fadool sold 29,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total value of $1,951,990.00. Following the transaction, the chief executive officer owned 405,964 shares in the company, valued at $27,325,436.84. This represents a 6.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Tania Wingfield sold 5,000 shares of the company'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 $2,236,482.60. This trade represents a 12.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 67,500 shares of company stock worth $4,310,115 over the last 90 days. 0.76% of the stock is owned by company insiders.

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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