Swedbank AB Buys 456,906 Shares of BorgWarner Inc. $BWA

Key Points

• Swedbank AB increased its stake in BorgWarner Inc. by 28.2% in the first quarter, holding 2,075,456 shares valued at approximately $59.5 million.
• BorgWarner announced a rise in its quarterly dividend from $0.11 to $0.17, representing an annualized yield of 1.6% and a payout ratio of 72.34%.
• The company has initiated a $1 billion stock repurchase plan, allowing it to repurchase up to 13.2% of its shares, which indicates management's belief that the stock is undervalued.

Swedbank AB increased its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 28.2% in the 1st quarter, according to its most recent filing with the SEC. The institutional investor owned 2,075,456 shares of the auto parts company's stock after buying an additional 456,906 shares during the quarter. Swedbank AB owned about 0.94% of BorgWarner worth $59,462,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the business. Trajan Wealth LLC increased its holdings in BorgWarner by 4.6% in the 1st quarter. Trajan Wealth LLC now owns 7,978 shares of the auto parts company's stock worth $229,000 after buying an additional 353 shares in the last quarter. Farther Finance Advisors LLC increased its holdings in BorgWarner by 26.1% in the 1st quarter. Farther Finance Advisors LLC now owns 1,965 shares of the auto parts company's stock worth $56,000 after buying an additional 407 shares in the last quarter. Beverly Hills Private Wealth LLC increased its holdings in BorgWarner by 5.7% in the 1st quarter. Beverly Hills Private Wealth LLC now owns 7,852 shares of the auto parts company's stock worth $225,000 after buying an additional 421 shares in the last quarter. Strengthening Families & Communities LLC increased its holdings in BorgWarner by 14.6% in the 1st quarter. Strengthening Families & Communities LLC now owns 3,301 shares of the auto parts company's stock worth $95,000 after buying an additional 421 shares in the last quarter. Finally, Janus Henderson Group PLC increased its holdings in BorgWarner by 0.4% in the 4th quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company's stock worth $3,580,000 after buying an additional 501 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. JPMorgan Chase & Co. lifted their price objective on BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a report on Monday, August 4th. Wells Fargo & Company increased their price objective on shares of BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 9th. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. UBS Group raised their price objective on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. Finally, Robert W. Baird raised shares of BorgWarner from a "neutral" rating to an "outperform" rating and raised their price objective for the stock from $41.00 to $52.00 in a report on Wednesday, September 3rd. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $41.21.

Insider Transactions at BorgWarner

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

BorgWarner Price Performance

NYSE BWA traded up $0.13 during trading hours on Thursday, reaching $44.31. The company's stock had a trading volume of 671,585 shares, compared to its average volume of 2,796,520. The firm's 50-day moving average price is $39.89 and its 200-day moving average price is $33.75. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $44.70. The company has a market capitalization of $9.59 billion, a price-to-earnings ratio of 47.19, a PEG ratio of 1.43 and a beta of 1.09.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The company had revenue of $3.64 billion for 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 period in the previous year, the firm earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities research analysts predict that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were issued a dividend of $0.17 per share. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.5%. BorgWarner's payout ratio is currently 72.34%.

BorgWarner announced that its Board of Directors has initiated a stock buyback program on Thursday, July 31st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

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.