Gotham Asset Management LLC Grows Stake in BorgWarner Inc. $BWA

Key Points

• Gotham Asset Management LLC increased its stake in BorgWarner by 30.1%, acquiring an additional 113,372 shares, bringing its total ownership to about 0.22% valued at $14.03 million.
• Analysts have upgraded BorgWarner's ratings, with Robert W. Baird raising its target price from $41.00 to $52.00, highlighting a general positive outlook on the stock.
• BorgWarner announced a quarterly dividend increase to $0.17 per share and initiated a $1 billion stock buyback plan, reflecting confidence in its stock valuation.

Gotham Asset Management LLC raised its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 30.1% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 489,941 shares of the auto parts company's stock after purchasing an additional 113,372 shares during the quarter. Gotham Asset Management LLC owned 0.22% of BorgWarner worth $14,037,000 as of its most recent SEC filing.

A number of other institutional investors have also modified their holdings of the company. Trajan Wealth LLC grew its stake in shares of BorgWarner by 4.6% in the first quarter. Trajan Wealth LLC now owns 7,978 shares of the auto parts company's stock valued at $229,000 after buying an additional 353 shares in the last quarter. Farther Finance Advisors LLC grew its holdings in shares of BorgWarner by 26.1% in the first quarter. Farther Finance Advisors LLC now owns 1,965 shares of the auto parts company's stock valued at $56,000 after purchasing an additional 407 shares in the last quarter. Beverly Hills Private Wealth LLC grew its holdings in shares of BorgWarner by 5.7% in the first quarter. Beverly Hills Private Wealth LLC now owns 7,852 shares of the auto parts company's stock valued at $225,000 after purchasing an additional 421 shares in the last quarter. Strengthening Families & Communities LLC grew its holdings in shares of BorgWarner by 14.6% in the first quarter. Strengthening Families & Communities LLC now owns 3,301 shares of the auto parts company's stock valued at $95,000 after purchasing an additional 421 shares in the last quarter. Finally, Janus Henderson Group PLC grew its holdings in shares of BorgWarner by 0.4% in the fourth quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company's stock valued at $3,580,000 after purchasing an additional 501 shares in the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, VP Stefan Demmerle sold 5,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total value of $202,500.00. Following the completion of the sale, the vice president directly owned 229,040 shares of the company's stock, valued at $9,276,120. This trade represents a 2.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 sale, the vice president directly owned 55,945 shares of the company's stock, valued at $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. Insiders sold 31,272 shares of company stock valued at $1,263,318 in the last three months. 0.45% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Robert W. Baird upgraded shares of BorgWarner from a "neutral" rating to an "outperform" rating and lifted their price objective for the company from $41.00 to $52.00 in a report on Wednesday, September 3rd. Baird R W raised BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. Bank of America cut BorgWarner from a "buy" rating to a "neutral" rating and boosted their target price for the stock from $41.00 to $46.00 in a research note on Wednesday. Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Finally, Wells Fargo & Company boosted their price objective on shares of BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $41.21.

BorgWarner Stock Performance

BWA traded down $0.72 during trading on Friday, hitting $43.65. The stock had a trading volume of 395,981 shares, compared to its average volume of 2,810,088. 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 firm has a market capitalization of $9.44 billion, a P/E ratio of 46.41, a PEG ratio of 1.30 and a beta of 1.09. The company's 50-day moving average price is $39.20 and its 200 day moving average price is $33.37. BorgWarner Inc. has a twelve month low of $24.40 and a twelve month high of $44.45.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate 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 net margin of 1.50% and a return on equity of 16.17%. BorgWarner's revenue was up 1.0% compared to the same quarter last year. During the same period in the previous year, the company posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities research analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner announced that its board has approved a stock repurchase plan on Thursday, July 31st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

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 issued a $0.17 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is 72.34%.

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.