Adage Capital Partners GP L.L.C. Sells 121,306 Shares of BorgWarner Inc. $BWA

Key Points

• Adage Capital Partners GP L.L.C. reduced its stake in BorgWarner by 26.7%, selling 121,306 shares but still holding 333,000 shares valued at $9.54 million.
• BorgWarner announced a quarterly dividend increase from $0.11 to $0.17 per share, representing an annual yield of 1.5%.
• Analysts are optimistic about BorgWarner, with a consensus price target of $40.57 and multiple upgrades in stock ratings, including a "strong-buy" revision from Wall Street Zen.

Adage Capital Partners GP L.L.C. reduced its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 26.7% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 333,000 shares of the auto parts company's stock after selling 121,306 shares during the quarter. Adage Capital Partners GP L.L.C. owned about 0.15% of BorgWarner worth $9,540,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Dimensional Fund Advisors LP raised its stake in BorgWarner by 2.5% in the first quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock valued at $331,429,000 after purchasing an additional 284,587 shares in the last quarter. LSV Asset Management raised its stake in BorgWarner by 36.7% in the first quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock valued at $168,722,000 after purchasing an additional 1,580,935 shares in the last quarter. Turtle Creek Asset Management Inc. raised its stake in BorgWarner by 7.0% in the fourth quarter. Turtle Creek Asset Management Inc. now owns 4,078,780 shares of the auto parts company's stock valued at $129,664,000 after purchasing an additional 267,250 shares in the last quarter. Bank of America Corp DE raised its stake in BorgWarner by 91.9% in the fourth quarter. Bank of America Corp DE now owns 3,878,932 shares of the auto parts company's stock valued at $123,311,000 after purchasing an additional 1,857,907 shares in the last quarter. Finally, American Century Companies Inc. raised its stake in BorgWarner by 1.7% in the first quarter. American Century Companies Inc. now owns 3,716,576 shares of the auto parts company's stock valued at $106,480,000 after purchasing an additional 60,382 shares in the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

BWA has been the topic of a number of recent analyst reports. Morgan Stanley raised their target price on shares of BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research note on Tuesday, August 12th. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Baird R W raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. Barclays reissued an "overweight" rating and set a $45.00 price target (up from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Finally, JPMorgan Chase & Co. lifted their price target on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research note on Monday, August 4th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $41.21.

Insider Activity at BorgWarner

In related news, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction 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 sale, the vice president owned 55,945 shares in the company, valued at $2,238,359.45. The trade was a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total transaction of $371,143.32. Following the completion of the sale, the director owned 78,903 shares in the company, valued at approximately $3,338,385.93. This trade represents a 10.01% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 31,272 shares of company stock worth $1,263,318 over the last quarter. Corporate insiders own 0.45% of the company's stock.

BorgWarner Trading Down 1.5%

Shares of BorgWarner stock traded down $0.67 on Friday, hitting $43.69. The stock had a trading volume of 1,925,820 shares, compared to its average volume of 2,277,518. 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 one year low of $24.40 and a one year high of $44.45. The stock has a market cap of $9.45 billion, a price-to-earnings ratio of 46.47, a PEG ratio of 1.46 and a beta of 1.09. The stock's 50-day simple moving average is $39.37 and its two-hundred day simple moving average is $33.46.

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 (EPS) for the quarter, topping the consensus estimate of $1.06 by $0.15. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm had revenue of $3.64 billion for the quarter, compared to analysts' expectations of $3.56 billion. During the same quarter last year, the business earned $1.19 earnings per share. The business's revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, sell-side analysts predict that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.6%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date is Tuesday, September 2nd. BorgWarner's dividend payout ratio (DPR) is presently 72.34%.

BorgWarner announced that its board has authorized a stock repurchase plan on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

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.