BorgWarner Inc. $BWA Shares Acquired by Great Lakes Advisors LLC

Key Points

• Great Lakes Advisors LLC increased its shares in BorgWarner Inc. by 54.7% during the first quarter, now holding approximately 1.24 million shares valued at $35.6 million.
• BorgWarner reported a net margin of 1.50% and exceeded analysts' earnings expectations with $1.21 earnings per share for the last quarter.
• The company announced a new $1 billion share repurchase program and increased its quarterly dividend from $0.11 to $0.17, reflecting confidence in its stock value.

Great Lakes Advisors LLC lifted its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 54.7% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,242,588 shares of the auto parts company's stock after acquiring an additional 439,611 shares during the quarter. Great Lakes Advisors LLC owned about 0.57% of BorgWarner worth $35,600,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Global X Japan Co. Ltd. lifted its holdings in shares of BorgWarner by 133.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after acquiring an additional 523 shares in the last quarter. LRI Investments LLC lifted its holdings in shares of BorgWarner by 1,515.0% during the 4th quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock valued at $31,000 after acquiring an additional 909 shares in the last quarter. Manchester Capital Management LLC acquired a new position in shares of BorgWarner during the 1st quarter valued at $30,000. Meeder Asset Management Inc. lifted its holdings in shares of BorgWarner by 63.5% during the 1st quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after acquiring an additional 539 shares in the last quarter. Finally, Allworth Financial LP lifted its holdings in shares of BorgWarner by 123.1% during the 1st quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after acquiring an additional 793 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

Insider Buying and Selling

In related news, VP Isabelle Mckenzie sold 2,500 shares of the firm'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 transaction, the vice president 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Stefan Demmerle sold 15,000 shares of the firm'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 transaction of $589,650.00. Following the completion of the transaction, the vice president directly 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 disclosure for this sale can be found here. In the last 90 days, insiders sold 31,272 shares of company stock valued at $1,263,318. Company insiders own 0.63% of the company's stock.

BorgWarner Trading Up 0.3%

BorgWarner stock opened at $44.00 on Monday. The firm has a 50 day simple moving average of $38.46 and a 200-day simple moving average of $33.02. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. The stock has a market capitalization of $9.52 billion, a PE ratio of 46.81, a price-to-earnings-growth ratio of 1.33 and a beta of 1.09. BorgWarner Inc. has a 12-month low of $24.40 and a 12-month high of $44.32.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results 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 firm 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% compared to the same quarter last year. During the same period last year, the firm posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, equities research analysts expect that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner declared that its board has approved a share repurchase program on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be paid a $0.17 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 1.5%. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio (DPR) is 72.34%.

Wall Street Analyst Weigh In

BWA has been the subject of a number of analyst reports. Wells Fargo & Company upped their price objective on shares of BorgWarner from $45.00 to $46.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Bank of America upped their price objective on shares of BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Robert W. Baird raised shares of BorgWarner from a "neutral" rating to an "outperform" rating and upped their price objective for the company from $41.00 to $52.00 in a research report on Wednesday, September 3rd. Piper Sandler upped their price objective on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Finally, Morgan Stanley upped their price objective on shares of BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research report on Tuesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, BorgWarner presently has an average rating of "Moderate Buy" and a consensus target price of $40.57.

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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