Bessemer Group Inc. Purchases 197,957 Shares of BorgWarner Inc. $BWA

Key Points

• Bessemer Group Inc. sharply increased its stake in BorgWarner, buying 197,957 shares in the fourth quarter and lifting its holdings to 201,386 shares worth about $9.1 million.
• BorgWarner has drawn mixed but generally constructive analyst attention, with JPMorgan and TD Cowen raising price targets, while the consensus rating remains Moderate Buy with an average target of $67.64.
• The company recently beat quarterly expectations on both earnings and revenue, and it reaffirmed its full-year outlook; however, insider selling and broader market weakness have weighed on sentiment.

Bessemer Group Inc. boosted its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 5,773.0% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 201,386 shares of the auto parts company's stock after buying an additional 197,957 shares during the period. Bessemer Group Inc. owned approximately 0.09% of BorgWarner worth $9,074,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Acadian Asset Management LLC lifted its stake in shares of BorgWarner by 23.7% in the 1st quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company's stock valued at $257,000 after purchasing an additional 1,723 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in shares of BorgWarner in the 2nd quarter valued at approximately $339,000. EverSource Wealth Advisors LLC lifted its stake in shares of BorgWarner by 400.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company's stock valued at $185,000 after purchasing an additional 4,426 shares during the last quarter. Marshall Wace LLP bought a new stake in shares of BorgWarner in the 2nd quarter valued at approximately $247,000. Finally, Cerity Partners LLC lifted its stake in shares of BorgWarner by 30.2% in the 2nd quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company's stock valued at $4,816,000 after purchasing an additional 33,362 shares during the last quarter. 95.67% of the stock is owned by institutional investors.

Key Stories Impacting BorgWarner

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: JPMorgan raised its price target on BorgWarner to $75 and kept an overweight rating, signaling continued upside potential. Article Title
• Positive Sentiment: TD Cowen also increased its target on BWA, reinforcing the bullish analyst tone around the stock’s recent rebound and EV-related growth story. Article Title
• Positive Sentiment: BorgWarner’s latest earnings beat expectations on both EPS and revenue, and the company reaffirmed its full-year outlook, which supports the longer-term investment case.
• Neutral Sentiment: Recent coverage highlighted BorgWarner’s role in the EV supply chain and its rally’s link to broader index performance, which is more sentiment/context than a new catalyst. Article Title
• Negative Sentiment: New insider-sale disclosures from the CEO and multiple vice presidents are weighing on sentiment, especially after several recent transactions. Article Title
• Negative Sentiment: The broader equity selloff is hitting cyclical stocks harder than the market overall, which is pressuring BorgWarner even without fresh company-specific bad news.

Analyst Upgrades and Downgrades

BWA has been the subject of several analyst reports. Robert W. Baird set a $76.00 price objective on BorgWarner in a research note on Thursday, February 12th. Deutsche Bank Aktiengesellschaft set a $81.00 price objective on BorgWarner in a research note on Tuesday, April 21st. TD Cowen raised their price objective on BorgWarner from $66.00 to $67.00 and gave the company a "hold" rating in a research note on Thursday, May 7th. New Street Research set a $66.00 price objective on BorgWarner in a research note on Thursday, February 12th. Finally, Wall Street Zen lowered BorgWarner from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 9th. Seven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $67.64.

Insider Activity at BorgWarner

In other BorgWarner news, EVP Tonit M. Calaway sold 14,021 shares of the firm's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $51.46, for a total transaction of $721,520.66. Following the transaction, the executive vice president directly owned 204,913 shares in the company, valued at $10,544,822.98. This trade represents a 6.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Paul Arthur Farrell sold 12,012 shares of the firm's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $52.31, for a total value of $628,347.72. Following the transaction, the executive vice president owned 38,238 shares in the company, valued at $2,000,229.78. The trade was a 23.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 108,216 shares of company stock worth $6,552,706 over the last three months. Corporate insiders own 0.76% of the company's stock.

BorgWarner Price Performance

Shares of BWA stock opened at $63.07 on Monday. BorgWarner Inc. has a 52-week low of $31.83 and a 52-week high of $70.31. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13. The firm has a market capitalization of $12.94 billion, a P/E ratio of 37.32, a P/E/G ratio of 1.22 and a beta of 1.00. The stock has a 50 day moving average price of $55.35 and a 200 day moving average price of $50.73.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly 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. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The firm had revenue of $3.53 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same period last year, the company earned $1.11 EPS. BorgWarner's quarterly revenue was up .5% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. As a group, sell-side analysts predict that BorgWarner Inc. will post 5.16 earnings per share for the current year.

BorgWarner Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.1%. The ex-dividend date is Monday, June 1st. BorgWarner's dividend payout ratio (DPR) is presently 40.24%.

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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