BlackRock Inc. Purchases Shares of 25,273,906 BorgWarner Inc. $BWA

Key Points

• BlackRock acquired 25.27 million BorgWarner shares worth approximately $1.68 billion, giving it a 12.32% stake. Institutional investors collectively own 95.67% of the company.
• Analyst sentiment is generally positive: BorgWarner has a “Moderate Buy” consensus rating from 15 analysts, with nine Buys and a consensus price target of $75.93.
• BorgWarner exceeded quarterly earnings and revenue expectations, while also authorizing a $1 billion share buyback and declaring a quarterly dividend of $0.17 per share.

BlackRock Inc. purchased a new position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 25,273,906 shares of the auto parts company's stock, valued at approximately $1,678,187,000. BlackRock Inc. owned 12.32% of BorgWarner as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently modified their holdings of the business. Acadian Asset Management LLC boosted its holdings in BorgWarner by 23.7% in the first quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company's stock valued at $257,000 after acquiring an additional 1,723 shares during the last quarter. Sivia Capital Partners LLC bought a new position in BorgWarner during the second quarter worth $339,000. EverSource Wealth Advisors LLC lifted its holdings in BorgWarner by 400.5% in the second quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company's stock valued at $185,000 after buying an additional 4,426 shares during the period. Marshall Wace LLP bought a new stake in BorgWarner during the second quarter valued at $247,000. Finally, Cerity Partners LLC boosted its position in BorgWarner by 30.2% during the second quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company's stock valued at $4,816,000 after acquiring an additional 33,362 shares during the last quarter. Institutional investors own 95.67% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on BWA shares. Wall Street Zen raised BorgWarner from a "hold" rating to a "buy" rating in a research report on Saturday, June 27th. Wells Fargo & Company raised their target price on BorgWarner from $68.00 to $83.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 2nd. TD Cowen boosted their price target on BorgWarner from $67.00 to $68.00 and gave the company a "hold" rating in a research note on Thursday, August 6th. UBS Group upgraded BorgWarner from a "neutral" rating to a "buy" rating and increased their price target for the stock from $61.00 to $95.00 in a report on Wednesday, June 10th. Finally, Barclays raised their price objective on shares of BorgWarner from $83.00 to $85.00 and gave the stock an "overweight" rating in a research report on Monday, August 10th. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $75.93.

BorgWarner Price Performance

Shares of NYSE:BWA opened at $64.66 on Friday. BorgWarner Inc. has a twelve month low of $40.50 and a twelve month high of $78.82. The stock's 50 day moving average is $66.48 and its 200-day moving average is $61.52. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. The firm has a market capitalization of $13.17 billion, a price-to-earnings ratio of 32.33, a PEG ratio of 1.19 and a beta of 1.10.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The business had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.58 billion. During the same quarter last year, the firm posted $1.21 EPS. BorgWarner's revenue was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Sell-side analysts forecast that BorgWarner Inc. will post 5.19 EPS for the current fiscal year.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a $0.17 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.68 annualized dividend and a yield of 1.1%. BorgWarner's dividend payout ratio (DPR) is presently 34.00%.

BorgWarner declared that its board has initiated a share buyback program on Wednesday, August 5th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the auto parts company to repurchase up to 7.7% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In related news, Director Rajesh Kalathur purchased 7,407 shares of the business's stock in a transaction on Wednesday, August 19th. The stock was acquired at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the purchase, the director owned 7,407 shares of the company's stock, valued at approximately $500,639.13. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CAO Amy B. Kulikowski sold 2,900 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the sale, the chief accounting officer directly owned 9,725 shares of the company's stock, valued at $667,135. This represents a 22.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.76% of the stock is currently 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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