BorgWarner Inc. $BWA Shares Sold by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC reduced its stake in BorgWarner Inc. by 6.1% in Q1, now owning approximately 1.31 million shares worth $37.31 million.
• BorgWarner recently reported an earnings per share of $1.21 for Q2, exceeding estimates by $0.15, while revenue rose 1.0% year-over-year.
• The company declared a quarterly dividend of $0.17 per share, reflecting an increase from its previous dividend, with a yield of 1.6%.

Hsbc Holdings PLC cut its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 6.1% in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,311,787 shares of the auto parts company's stock after selling 84,789 shares during the quarter. Hsbc Holdings PLC owned 0.60% of BorgWarner worth $37,310,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Global X Japan Co. Ltd. grew its holdings in shares of BorgWarner by 133.4% in the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares in the last quarter. Manchester Capital Management LLC purchased a new position in shares of BorgWarner in the first quarter valued at $30,000. LRI Investments LLC grew its holdings in shares of BorgWarner by 1,515.0% in the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock valued at $31,000 after purchasing an additional 909 shares in the last quarter. Meeder Asset Management Inc. grew its holdings in shares of BorgWarner by 63.5% in the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after purchasing an additional 539 shares in the last quarter. Finally, Allworth Financial LP grew its holdings in shares of BorgWarner by 123.1% in the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after purchasing an additional 793 shares in the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the sale, the vice president directly 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 through the SEC website. Also, VP Stefan Demmerle sold 5,000 shares of the business's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total transaction of $202,500.00. Following the completion of the transaction, the vice president owned 229,040 shares of the company's stock, valued at $9,276,120. This represents a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 22,500 shares of company stock valued at $892,175 over the last 90 days. 0.63% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

BWA has been the subject of a number of recent research reports. UBS Group raised their target price on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a report on Monday, July 14th. JPMorgan Chase & Co. raised their price target on BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research report on Monday, August 4th. Morgan Stanley raised their price target on BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Robert W. Baird raised their price target on BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Finally, Barclays restated an "overweight" rating and issued a $45.00 price target (up from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Ten analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, BorgWarner currently has a consensus rating of "Moderate Buy" and a consensus price target of $39.64.

BorgWarner Trading Down 0.0%

Shares of NYSE BWA traded down $0.02 during mid-day trading on Wednesday, reaching $43.54. The company had a trading volume of 1,105,990 shares, compared to its average volume of 2,840,111. The business's 50-day moving average is $36.87 and its 200-day moving average is $32.25. 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 cap of $9.42 billion, a price-to-earnings ratio of 46.28, a price-to-earnings-growth ratio of 1.31 and a beta of 1.10. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $43.83.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion for the quarter, compared to analysts' expectations of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The business's revenue for the quarter was up 1.0% on a year-over-year basis. During the same period in the prior year, the business posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities analysts expect that BorgWarner Inc. will post 4.28 earnings per share 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 shares. This repurchase authorization authorizes the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently disclosed 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 is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. BorgWarner's payout ratio is presently 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.