BorgWarner Inc. $BWA Shares Purchased by 111 Capital

Key Points

• 111 Capital increased its ownership in BorgWarner Inc. by 80.7% during the 2nd quarter, now holding 26,210 shares valued at approximately $878,000.
• BorgWarner recently announced a $1 billion share buyback plan that allows the company to repurchase up to 13.2% of its shares, signaling management's belief that the stock is undervalued.
• The company also raised its quarterly dividend to $0.17, up from $0.11, indicating a commitment to returning value to shareholders.

111 Capital lifted its position in BorgWarner Inc. (NYSE:BWA - Free Report) by 80.7% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 26,210 shares of the auto parts company's stock after purchasing an additional 11,702 shares during the period. 111 Capital's holdings in BorgWarner were worth $878,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also recently made changes to their positions in the company. QRG Capital Management Inc. lifted its stake in shares of BorgWarner by 22.7% in the 2nd quarter. QRG Capital Management Inc. now owns 75,234 shares of the auto parts company's stock valued at $2,519,000 after purchasing an additional 13,908 shares during the period. Hilltop National Bank acquired a new position in shares of BorgWarner in the 2nd quarter valued at $47,000. Trust Co. of Vermont lifted its stake in shares of BorgWarner by 55,000.0% in the 2nd quarter. Trust Co. of Vermont now owns 1,102 shares of the auto parts company's stock valued at $37,000 after purchasing an additional 1,100 shares during the period. PFG Investments LLC acquired a new position in shares of BorgWarner in the 2nd quarter valued at $249,000. Finally, Truist Financial Corp lifted its stake in shares of BorgWarner by 7.0% in the 2nd quarter. Truist Financial Corp now owns 17,336 shares of the auto parts company's stock valued at $580,000 after purchasing an additional 1,134 shares during the period. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Price Performance

BorgWarner stock opened at $44.77 on Friday. BorgWarner Inc. has a 52-week low of $24.40 and a 52-week high of $44.90. The firm has a market capitalization of $9.69 billion, a price-to-earnings ratio of 47.62, a PEG ratio of 1.47 and a beta of 1.09. The company has a fifty day simple moving average of $41.91 and a 200-day simple moving average of $35.04. 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 (NYSE:BWA - Get Free Report) last released its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The business had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. During the same quarter in the prior year, the firm earned $1.19 earnings per share. The company's revenue for the quarter was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities analysts anticipate that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner announced that its Board of Directors has initiated a share buyback plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to buy up to 13.2% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

BorgWarner Increases Dividend

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

Insider Activity at BorgWarner

In related news, Director Alexis P. Michas sold 8,772 shares of the company's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the sale, the director owned 78,903 shares of the company's stock, valued at approximately $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Stefan Demmerle sold 5,000 shares of the company's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total transaction 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 represents a 2.14% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 31,272 shares of company stock valued at $1,263,318. 0.45% of the stock is owned by company insiders.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Zacks Research raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Friday, September 12th. UBS Group boosted their price target on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. Wells Fargo & Company boosted their price target on shares of BorgWarner from $50.00 to $54.00 and gave the stock an "overweight" rating in a report on Thursday, September 25th. Bank of America lowered shares of BorgWarner from a "buy" rating to a "neutral" rating and boosted their price target for the stock from $41.00 to $46.00 in a report on Wednesday, September 10th. Finally, Evercore ISI boosted 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. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, BorgWarner has a consensus rating of "Moderate Buy" and a consensus target price of $42.79.

About BorgWarner

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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