BorgWarner Inc. $BWA Shares Sold by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors LP slightly reduced its BorgWarner stake by 0.3% in the first quarter, but still held 11.93 million shares worth about $647.1 million at quarter-end.
• BorgWarner reported stronger-than-expected quarterly results, with EPS of $1.24 topping estimates and revenue of $3.53 billion edging past forecasts. The company also reaffirmed full-year guidance of 5.00 to 5.20 EPS.
• Wall Street sentiment remains constructive, with several analysts issuing buy or higher-target ratings and a consensus price target of $74.57. The stock also pays a quarterly dividend of $0.17 per share, yielding about 1.1%.

Dimensional Fund Advisors LP trimmed its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 0.3% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 11,926,322 shares of the auto parts company's stock after selling 35,160 shares during the period. Dimensional Fund Advisors LP owned 5.79% of BorgWarner worth $647,098,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of the stock. Inspire Investing LLC lifted its stake in BorgWarner by 2.8% in the 4th quarter. Inspire Investing LLC now owns 7,223 shares of the auto parts company's stock valued at $325,000 after buying an additional 195 shares in the last quarter. Lazard Asset Management LLC increased its stake in BorgWarner by 1.0% during the 4th quarter. Lazard Asset Management LLC now owns 21,719 shares of the auto parts company's stock worth $979,000 after buying an additional 206 shares in the last quarter. Arjuna Capital increased its stake in BorgWarner by 0.6% during the 4th quarter. Arjuna Capital now owns 34,932 shares of the auto parts company's stock worth $1,574,000 after buying an additional 215 shares in the last quarter. Fifth Third Wealth Advisors LLC raised its holdings in shares of BorgWarner by 3.2% during the first quarter. Fifth Third Wealth Advisors LLC now owns 7,064 shares of the auto parts company's stock valued at $383,000 after acquiring an additional 216 shares during the last quarter. Finally, Quadrant Capital Group LLC lifted its position in shares of BorgWarner by 0.7% in the fourth quarter. Quadrant Capital Group LLC now owns 34,538 shares of the auto parts company's stock valued at $1,556,000 after acquiring an additional 246 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

BorgWarner Stock Performance

Shares of BorgWarner stock opened at $62.44 on Monday. BorgWarner Inc. has a one year low of $34.27 and a one year high of $78.82. The company has a market cap of $12.81 billion, a price-to-earnings ratio of 36.95, a PEG ratio of 1.33 and a beta of 1.09. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13. The business's 50 day moving average price is $68.07 and its 200 day moving average price is $58.44.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share for the quarter, topping analysts' consensus estimates of $1.16 by $0.08. The company had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The firm's revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.11 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, research analysts predict that BorgWarner Inc. will post 5.16 EPS for the current year.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were paid a dividend of $0.17 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.68 dividend on an annualized basis and a yield of 1.1%. BorgWarner's payout ratio is 40.24%.

Wall Street Analyst Weigh In

BWA has been the topic of a number of research analyst reports. Sanford C. Bernstein raised BorgWarner to a "buy" rating in a research note on Wednesday, June 10th. Morgan Stanley increased their price objective on BorgWarner from $60.00 to $67.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft set a $81.00 price objective on BorgWarner in a report on Tuesday, April 21st. Wall Street Zen raised shares of BorgWarner from a "hold" rating to a "buy" rating in a report on Saturday, June 27th. Finally, JPMorgan Chase & Co. raised their price target on shares of BorgWarner from $73.00 to $75.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. Nine research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, BorgWarner presently has an average rating of "Moderate Buy" and a consensus target price of $74.57.

Insider Activity

In other news, VP Isabelle Mckenzie sold 3,500 shares of the firm's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $63.35, for a total transaction of $221,725.00. Following the completion of the sale, the vice president owned 57,828 shares in the company, valued at $3,663,403.80. This trade represents a 5.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Stefan Demmerle sold 20,000 shares of BorgWarner stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $59.26, for a total transaction of $1,185,200.00. Following the sale, the vice president directly owned 213,746 shares in the company, valued at approximately $12,666,587.96. The trade was a 8.56% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 67,500 shares of company stock valued at $4,310,115. Company insiders own 0.76% of the company's stock.

BorgWarner Profile

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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