BorgWarner Inc. $BWA Holdings Lifted by Lodge Hill Capital LLC

Key Points

• Lodge Hill Capital LLC increased its holdings in BorgWarner Inc. by 21.9% during the first quarter, owning approximately 0.24% of the company, valued at $15,063,000.
• BorgWarner recently reported $1.21 earnings per share for the quarter, exceeding expectations, and has set a FY 2025 EPS guidance of 4.450-4.65.
• The company has declared a quarterly dividend of $0.17, up from $0.11, representing a 1.6% yield and a payout ratio of 46.81%.

Lodge Hill Capital LLC increased its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 21.9% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 525,770 shares of the auto parts company's stock after buying an additional 94,500 shares during the quarter. BorgWarner accounts for approximately 3.6% of Lodge Hill Capital LLC's holdings, making the stock its 16th biggest position. Lodge Hill Capital LLC owned approximately 0.24% of BorgWarner worth $15,063,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of the business. Global X Japan Co. Ltd. grew its stake in BorgWarner by 133.4% in the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares in the last quarter. Manchester Capital Management LLC purchased a new position in BorgWarner in the first quarter valued at about $30,000. LRI Investments LLC grew its stake in BorgWarner by 1,515.0% in the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock valued at $31,000 after purchasing an additional 909 shares in the last quarter. Meeder Asset Management Inc. grew its stake in BorgWarner by 63.5% in the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after purchasing an additional 539 shares in the last quarter. Finally, Allworth Financial LP grew its stake in BorgWarner by 123.1% in the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after purchasing an additional 793 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

Insider Activity at BorgWarner

In other BorgWarner news, VP Stefan Demmerle sold 15,000 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total value of $589,650.00. Following the completion of the transaction, the vice president owned 234,040 shares of the company's stock, valued at $9,200,112.40. This represents a 6.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the sale, the vice president owned 55,945 shares in the company, valued at approximately $2,238,359.45. This represents a 4.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 22,500 shares of company stock valued at $892,175. Insiders own 0.45% of the company's stock.

Analyst Ratings Changes

BWA has been the topic of a number of recent research reports. JPMorgan Chase & Co. boosted their target price on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Morgan Stanley boosted their target price on BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research note on Tuesday, August 12th. Barclays reiterated an "overweight" rating and set a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Finally, Wells Fargo & Company upped their price target on BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Ten research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $39.64.

BorgWarner Price Performance

NYSE BWA opened at $43.57 on Thursday. BorgWarner Inc. has a twelve month low of $24.40 and a twelve month high of $43.83. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. The stock has a market capitalization of $9.43 billion, a PE ratio of 46.36, a P/E/G ratio of 1.32 and a beta of 1.10. The stock has a 50-day simple moving average of $37.08 and a 200 day simple moving average of $32.33.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.06 by $0.15. The business had revenue of $3.64 billion during 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 revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Research analysts anticipate that BorgWarner Inc. will post 4.28 EPS for the current year.

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

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be issued a $0.17 dividend. This is a boost from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a yield of 1.6%. BorgWarner's dividend payout ratio is 46.81%.

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.

Want to see what other hedge funds are holding BWA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for BorgWarner Inc. (NYSE:BWA - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.