BorgWarner Inc. $BWA Shares Sold by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital cut its BorgWarner stake by 65.6% in the first quarter, selling 98,108 shares and retaining 51,346 shares valued at approximately $2.8 million. Institutional investors collectively own 95.67% of the company.
• BorgWarner insiders sold 67,500 shares worth about $4.31 million over the past three months, including sales by the CEO and a vice president.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $74.57. The company also beat quarterly earnings estimates, reporting $1.24 in EPS and $3.53 billion in revenue, and declared a quarterly dividend of $0.17 per share.

Arrowstreet Capital Limited Partnership lowered its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 65.6% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 51,346 shares of the auto parts company's stock after selling 98,108 shares during the period. Arrowstreet Capital Limited Partnership's holdings in BorgWarner were worth $2,786,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently added to or reduced their stakes in BWA. Prosperity Bancshares Inc purchased a new stake in shares of BorgWarner during the 4th quarter worth approximately $37,000. Sound Income Strategies LLC raised its stake in shares of BorgWarner by 9,888.9% during the 4th quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock worth $42,000 after buying an additional 890 shares during the last quarter. Torren Management LLC acquired a new position in shares of BorgWarner during the 4th quarter worth $48,000. Cedar Mountain Advisors LLC purchased a new stake in shares of BorgWarner in the 1st quarter worth about $55,000. Finally, UMB Bank n.a. boosted its position in shares of BorgWarner by 28.1% in the 4th quarter. UMB Bank n.a. now owns 1,709 shares of the auto parts company's stock worth $77,000 after buying an additional 375 shares in the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other BorgWarner news, CEO Joseph F. Fadool sold 29,000 shares of BorgWarner stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $67.31, for a total value of $1,951,990.00. Following the completion of the sale, the chief executive officer owned 405,964 shares in the company, valued at $27,325,436.84. The trade was a 6.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Stefan Demmerle sold 5,000 shares of the stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total transaction of $325,000.00. Following the transaction, the vice president owned 203,746 shares in the company, valued at approximately $13,243,490. The trade was a 2.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 67,500 shares of company stock worth $4,310,115 in the last three months. Company insiders own 0.76% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the stock. Wolfe Research restated an "outperform" rating and set a $95.00 target price on shares of BorgWarner in a report on Wednesday, June 3rd. JPMorgan Chase & Co. upped their price target on shares of BorgWarner from $73.00 to $75.00 and gave the company an "overweight" rating in a report on Thursday, May 14th. Sanford C. Bernstein upgraded shares of BorgWarner to a "buy" rating in a research report on Wednesday, June 10th. UBS Group raised shares of BorgWarner from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $61.00 to $95.00 in a research note on Wednesday, June 10th. Finally, Wells Fargo & Company lifted their price objective on BorgWarner from $68.00 to $83.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 2nd. Nine analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $74.57.

BorgWarner Stock Performance

NYSE:BWA opened at $62.80 on Wednesday. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.13 and a quick ratio of 1.75. The firm has a market cap of $12.88 billion, a PE ratio of 37.16, a P/E/G ratio of 1.35 and a beta of 1.10. The firm has a 50 day simple moving average of $67.82 and a 200-day simple moving average of $59.83. BorgWarner Inc. has a 1-year low of $37.59 and a 1-year high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.16 by $0.08. The firm had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. BorgWarner's revenue was up .5% compared to the same quarter last year. During the same quarter last year, the business earned $1.11 earnings per share. On average, equities analysts expect that BorgWarner Inc. will post 5.16 EPS for the current year.

BorgWarner Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.17 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. BorgWarner's dividend payout ratio (DPR) is 40.24%.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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