Hotchkis & Wiley Capital Management LLC Reduces Stock Holdings in BorgWarner Inc. $BWA

Key Points

• Hotchkis & Wiley Capital Management LLC reduced its stake in BorgWarner Inc. by 0.3%, now holding about 2.79 million shares valued at approximately $79.8 million.
• BorgWarner announced a quarterly dividend increase to $0.17, up from $0.11, alongside a share buyback plan of $1 billion to repurchase 13.2% of its stock.
• Analysts maintain a Moderate Buy consensus rating for BorgWarner, with target prices reaching as high as $46.00, indicating positive market expectations.

Hotchkis & Wiley Capital Management LLC lessened its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 0.3% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,786,707 shares of the auto parts company's stock after selling 7,366 shares during the quarter. Hotchkis & Wiley Capital Management LLC owned about 1.27% of BorgWarner worth $79,839,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the company. Trajan Wealth LLC grew its holdings in BorgWarner by 4.6% during the 1st quarter. Trajan Wealth LLC now owns 7,978 shares of the auto parts company's stock valued at $229,000 after buying an additional 353 shares in the last quarter. Farther Finance Advisors LLC grew its holdings in BorgWarner by 26.1% during the 1st quarter. Farther Finance Advisors LLC now owns 1,965 shares of the auto parts company's stock valued at $56,000 after buying an additional 407 shares in the last quarter. Beverly Hills Private Wealth LLC grew its holdings in BorgWarner by 5.7% during the 1st quarter. Beverly Hills Private Wealth LLC now owns 7,852 shares of the auto parts company's stock valued at $225,000 after buying an additional 421 shares in the last quarter. Strengthening Families & Communities LLC grew its holdings in BorgWarner by 14.6% during the 1st quarter. Strengthening Families & Communities LLC now owns 3,301 shares of the auto parts company's stock valued at $95,000 after buying an additional 421 shares in the last quarter. Finally, Janus Henderson Group PLC grew its holdings in BorgWarner by 0.4% during the 4th quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company's stock valued at $3,580,000 after buying an additional 501 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

Insiders Place Their Bets

In other news, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value of $100,025.00. Following the transaction, the vice president directly owned 55,945 shares in the company, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total value of $589,650.00. Following the completion of the transaction, the vice president owned 234,040 shares in the company, valued at $9,200,112.40. This represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 22,500 shares of company stock worth $892,175 over the last quarter. Company insiders own 0.63% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on BWA. Barclays restated an "overweight" rating and set a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Robert W. Baird raised their price objective on BorgWarner from $32.00 to $39.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Bank of America raised their price objective on BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research note on Monday, June 16th. JPMorgan Chase & Co. raised their price objective on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Finally, UBS Group raised their price target on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research note on Monday, July 14th. Ten research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, BorgWarner currently has an average rating of "Moderate Buy" and a consensus price target of $39.64.

BorgWarner Trading Up 0.0%

Shares of BWA stock traded up $0.01 on Wednesday, reaching $43.57. 2,254,213 shares of the company's stock were exchanged, compared to its average volume of 2,847,646. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $43.83. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The stock has a market capitalization of $9.43 billion, a PE ratio of 46.36, a P/E/G ratio of 1.31 and a beta of 1.10. The company's fifty day simple moving average is $36.87 and its 200 day simple moving average is $32.25.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping 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 company had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. During the same period last year, the business posted $1.19 EPS. BorgWarner'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. As a group, analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner declared that its Board of Directors has initiated a share buyback 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 repurchase up to 13.2% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its stock is undervalued.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be 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 1.6%. BorgWarner's dividend payout ratio (DPR) is currently 72.34%.

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.