BorgWarner Inc. $BWA Shares Sold by Corebridge Financial Inc.

Key Points

• Corebridge Financial Inc. significantly reduced its shareholding in BorgWarner Inc. by 83.5%, holding 8,525 shares valued at $244,000 after selling 43,253 shares in the 1st quarter.
• Several institutional investors, including LSV Asset Management, Principal Financial Group, and Public Sector Pension Investment Board, increased their stakes in BorgWarner during the same period, reflecting a strong institutional interest.
• BorgWarner announced an increase in its quarterly dividend from $0.11 to $0.17 per share and authorized a $1.00 billion stock buyback, indicating confidence in its financial position and stock valuation.

Corebridge Financial Inc. reduced its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 83.5% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 8,525 shares of the auto parts company's stock after selling 43,253 shares during the period. Corebridge Financial Inc.'s holdings in BorgWarner were worth $244,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in BWA. LSV Asset Management grew its stake in BorgWarner by 36.7% during the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after buying an additional 1,580,935 shares during the last quarter. Leith Wheeler Investment Counsel Ltd. bought a new position in BorgWarner during the 1st quarter worth $28,989,000. Principal Financial Group Inc. grew its stake in BorgWarner by 338.5% during the 1st quarter. Principal Financial Group Inc. now owns 1,085,149 shares of the auto parts company's stock worth $31,090,000 after buying an additional 837,668 shares during the last quarter. Public Sector Pension Investment Board grew its stake in BorgWarner by 1,121.2% during the 1st quarter. Public Sector Pension Investment Board now owns 693,551 shares of the auto parts company's stock worth $19,870,000 after buying an additional 636,757 shares during the last quarter. Finally, Nuveen LLC bought a new position in BorgWarner during the 1st quarter worth $14,377,000. 95.67% of the stock is currently owned by institutional investors.

Insider Activity at BorgWarner

In related news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the transaction, the vice president owned 55,945 shares of the company's stock, valued at $2,238,359.45. This trade represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Stefan Demmerle sold 15,000 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total value of $589,650.00. Following the transaction, the vice president directly owned 234,040 shares of the company's stock, valued at $9,200,112.40. This represents a 6.02% decrease in their position. The disclosure for this sale can be found here. Insiders sold 31,272 shares of company stock valued at $1,263,318 over the last 90 days. 0.45% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

BWA has been the subject of a number of recent research reports. Bank of America upped their price objective on BorgWarner from $35.00 to $41.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. UBS Group upped their price objective on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research note on Monday, July 14th. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Robert W. Baird upgraded BorgWarner from a "neutral" rating to an "outperform" rating and upped their price objective for the stock from $41.00 to $52.00 in a research note on Wednesday, September 3rd. Finally, JPMorgan Chase & Co. increased their price target on BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research note on Monday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $40.57.

BorgWarner Trading Up 0.9%

NYSE:BWA opened at $44.42 on Tuesday. The business has a fifty day moving average of $38.68 and a 200-day moving average of $33.12. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $44.45. The stock has a market cap of $9.61 billion, a price-to-earnings ratio of 47.25, a PEG ratio of 1.33 and a beta of 1.09. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The business had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.56 billion. During the same quarter last year, the business posted $1.19 earnings per share. The company's quarterly revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner declared that its Board of Directors has authorized a stock buyback plan on Thursday, July 31st that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be paid a dividend of $0.17 per share. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Tuesday, September 2nd. BorgWarner's dividend payout ratio (DPR) 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.

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