BorgWarner Inc. $BWA is Kopion Asset Management LLC's 2nd Largest Position

Key Points

• Kopion Asset Management LLC has decreased its holdings in BorgWarner Inc. by 7.4%, now owning 338,736 shares, making it the firm's 2nd largest position at 7.6% of its total holdings.
• BorgWarner recently reported quarterly earnings of $1.21 per share, surpassing analysts’ estimates, and declared an increased quarterly dividend of $0.17 per share, up from $0.11.
• The company has authorized a stock buyback program worth $1.00 billion to repurchase up to 13.2% of its shares, indicating management's belief that the stock is undervalued.

Kopion Asset Management LLC lessened its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 7.4% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 338,736 shares of the auto parts company's stock after selling 26,884 shares during the period. BorgWarner makes up 7.6% of Kopion Asset Management LLC's holdings, making the stock its 2nd biggest position. Kopion Asset Management LLC owned approximately 0.15% of BorgWarner worth $11,341,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. New York State Teachers Retirement System boosted its holdings in BorgWarner by 3.8% during the first quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock worth $6,280,000 after buying an additional 7,977 shares in the last quarter. Avantax Advisory Services Inc. boosted its holdings in BorgWarner by 13.3% during the first quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock worth $380,000 after buying an additional 1,555 shares in the last quarter. Sage Rhino Capital LLC purchased a new stake in BorgWarner during the first quarter worth $235,000. Brown Advisory Inc. purchased a new stake in BorgWarner during the first quarter worth $522,000. Finally, Alpha Omega Wealth Management LLC boosted its holdings in BorgWarner by 59.8% during the first quarter. Alpha Omega Wealth Management LLC now owns 25,190 shares of the auto parts company's stock worth $722,000 after buying an additional 9,427 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

BorgWarner Stock Performance

NYSE:BWA opened at $43.69 on Monday. 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 company has a fifty day moving average of $39.37 and a two-hundred day moving average of $33.51. The stock has a market capitalization of $9.45 billion, a PE ratio of 46.47, a P/E/G ratio of 1.44 and a beta of 1.09. BorgWarner Inc. has a fifty-two week low of $24.40 and a fifty-two week high of $44.45.

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 analysts' consensus estimates of $1.06 by $0.15. The company had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm's revenue for the quarter was up 1.0% on a year-over-year basis. During the same period in the prior year, the business posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, research analysts forecast that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be paid a $0.17 dividend. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Tuesday, September 2nd. BorgWarner's payout ratio is 72.34%.

BorgWarner declared that its board has authorized a stock buyback program on Thursday, July 31st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on BWA. Morgan Stanley increased their price target on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a report on Tuesday, August 12th. Evercore ISI increased their price target on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a report on Monday, August 4th. Piper Sandler increased their price target on shares of BorgWarner from $37.00 to $44.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Baird R W raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 3rd. Finally, Robert W. Baird raised shares of BorgWarner from a "neutral" rating to an "outperform" rating and increased their price target for the stock from $41.00 to $52.00 in a report on Wednesday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, BorgWarner currently has a consensus rating of "Moderate Buy" and an average target price of $41.21.

Insider Transactions at BorgWarner

In other news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the transaction, the vice president directly owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Alexis P. Michas sold 8,772 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total transaction of $371,143.32. Following the completion of the transaction, the director directly owned 78,903 shares in the company, valued at approximately $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 31,272 shares of company stock valued at $1,263,318. Corporate insiders own 0.45% of the company's stock.

BorgWarner Company 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.

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