BorgWarner Inc. $BWA is Leith Wheeler Investment Counsel Ltd.'s 9th Largest Position

Key Points

• Leith Wheeler Investment Counsel Ltd. trimmed its BorgWarner stake by 8.3% in the first quarter, but the auto parts maker still remained its 9th-largest holding at 2.2% of the portfolio.
• BorgWarner reported better-than-expected quarterly results, posting EPS of $1.24 versus $1.16 expected and revenue of $3.53 billion, with management guiding FY 2026 EPS to 5.00-5.20.
• Analysts remain broadly positive on the stock, with nine Buy ratings and six Hold ratings, giving BorgWarner a consensus “Moderate Buy” and an average price target of $74.57.

Leith Wheeler Investment Counsel Ltd. cut its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 8.3% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 492,802 shares of the auto parts company's stock after selling 44,361 shares during the period. BorgWarner accounts for 2.2% of Leith Wheeler Investment Counsel Ltd.'s portfolio, making the stock its 9th largest holding. Leith Wheeler Investment Counsel Ltd. owned 0.24% of BorgWarner worth $26,739,000 as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. Acadian Asset Management LLC increased 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 worth $257,000 after purchasing an additional 1,723 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in shares of BorgWarner during the 2nd quarter valued at about $339,000. EverSource Wealth Advisors LLC boosted its position in shares of BorgWarner by 400.5% in the second quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company's stock worth $185,000 after purchasing an additional 4,426 shares during the period. Marshall Wace LLP purchased a new stake in BorgWarner during the 2nd quarter valued at approximately $247,000. Finally, Cerity Partners LLC grew its holdings in BorgWarner by 30.2% during the 2nd quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company's stock valued at $4,816,000 after buying an additional 33,362 shares in the last quarter. Institutional investors own 95.67% of the company's stock.

BorgWarner Price Performance

NYSE:BWA opened at $61.60 on Tuesday. The firm has a market capitalization of $12.63 billion, a price-to-earnings ratio of 36.45, a PEG ratio of 1.33 and a beta of 1.09. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.13 and a quick ratio of 1.75. The business has a 50 day simple moving average of $68.03 and a 200-day simple moving average of $58.56. BorgWarner Inc. has a 1 year low of $34.27 and a 1 year high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $3.50 billion. During the same quarter in the previous year, the company posted $1.11 EPS. The company'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. Equities analysts forecast that BorgWarner Inc. will post 5.16 EPS for the current year.

BorgWarner Dividend Announcement

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

Analyst Ratings Changes

BWA has been the subject of a number of research reports. The Goldman Sachs Group restated a "buy" rating and set a $84.00 target price on shares of BorgWarner in a research report on Thursday, June 11th. Barclays boosted their price target on shares of BorgWarner from $75.00 to $83.00 and gave the stock an "overweight" rating in a research note on Thursday, July 9th. Wells Fargo & Company raised their price objective on BorgWarner from $68.00 to $83.00 and gave the company an "overweight" rating in a research report on Tuesday, June 2nd. Wolfe Research reiterated an "outperform" rating and issued a $95.00 target price on shares of BorgWarner in a research report on Wednesday, June 3rd. Finally, UBS Group raised BorgWarner from a "neutral" rating to a "buy" rating and increased their price target for the company from $61.00 to $95.00 in a research note on Wednesday, June 10th. Nine equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, BorgWarner currently has an average rating of "Moderate Buy" and a consensus price target of $74.57.

Insider Activity

In other news, CEO Joseph F. Fadool sold 29,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $67.31, for a total value of $1,951,990.00. Following the sale, the chief executive officer directly owned 405,964 shares in the company, valued at approximately $27,325,436.84. This represents a 6.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Stefan Demmerle sold 20,000 shares of the company's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $59.26, for a total value of $1,185,200.00. Following the completion of the transaction, the vice president directly owned 213,746 shares in the company, valued at $12,666,587.96. This trade represents a 8.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 67,500 shares of company stock worth $4,310,115. 0.76% of the stock is currently owned by 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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