BorgWarner Inc. $BWA Shares Sold by Kopion Asset Management LLC

Key Points

• Kopion Asset Management cut its BorgWarner stake by 42.6% in the second quarter, selling 51,586 shares and retaining 69,428 shares valued at approximately $4.61 million.
• Institutional investors own 95.67% of BorgWarner, while analyst sentiment remains favorable: nine analysts rate the stock a Buy and six rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $74.57.
• BorgWarner exceeded quarterly expectations with $1.24 in earnings per share versus a $1.16 estimate and $3.53 billion in revenue. The company also declared a quarterly dividend of $0.17 per share, representing a 1.1% yield.

Kopion Asset Management LLC cut its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 42.6% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 69,428 shares of the auto parts company's stock after selling 51,586 shares during the period. BorgWarner comprises about 2.9% of Kopion Asset Management LLC's holdings, making the stock its 16th largest holding. Kopion Asset Management LLC's holdings in BorgWarner were worth $4,610,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently bought and sold shares of BWA. Acadian Asset Management LLC raised its position in BorgWarner by 23.7% in the 1st quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company's stock valued at $257,000 after purchasing an additional 1,723 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of BorgWarner during the second quarter worth about $339,000. EverSource Wealth Advisors LLC increased its stake in shares of BorgWarner by 400.5% during the second quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company's stock worth $185,000 after buying an additional 4,426 shares during the period. Marshall Wace LLP purchased a new stake in shares of BorgWarner during the second quarter worth approximately $247,000. Finally, Cerity Partners LLC raised its holdings in BorgWarner by 30.2% in the second quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company's stock valued at $4,816,000 after acquiring an additional 33,362 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have commented on BWA shares. Deutsche Bank Aktiengesellschaft set a $81.00 price target on shares of BorgWarner in a report on Tuesday, April 21st. UBS Group upgraded shares of BorgWarner from a "neutral" rating to a "buy" rating and raised their price objective for the company from $61.00 to $95.00 in a report on Wednesday, June 10th. TD Cowen boosted their target price on shares of BorgWarner from $66.00 to $67.00 and gave the stock a "hold" rating in a research note on Thursday, May 7th. Barclays increased their target price on BorgWarner from $75.00 to $83.00 and gave the company an "overweight" rating in a report on Thursday, July 9th. Finally, JPMorgan Chase & Co. raised their price target on BorgWarner from $73.00 to $75.00 and gave the company 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 data from MarketBeat, BorgWarner currently has a consensus rating of "Moderate Buy" and an average price target of $74.57.

BorgWarner Stock Performance

Shares of BorgWarner stock opened at $62.80 on Wednesday. The company has a quick ratio of 1.75, a current ratio of 2.13 and a debt-to-equity ratio of 0.69. BorgWarner Inc. has a 52 week low of $37.59 and a 52 week high of $78.82. The firm's 50 day moving average is $67.82 and its two-hundred day moving average is $59.83. The firm has a market capitalization of $12.88 billion, a P/E ratio of 37.16, a P/E/G ratio of 1.35 and a beta of 1.10.

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

BorgWarner Dividend Announcement

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

Insider Activity at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 3,500 shares of the firm's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $63.35, for a total transaction of $221,725.00. Following the transaction, the vice president owned 57,828 shares of the company's stock, valued at approximately $3,663,403.80. This trade represents a 5.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Tania Wingfield sold 5,000 shares of BorgWarner stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $63.24, for a total value of $316,200.00. Following the sale, the executive vice president owned 35,365 shares in the company, valued at $2,236,482.60. This trade represents a 12.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 67,500 shares of company stock valued at $4,310,115 over the last quarter. 0.76% of the stock is owned by insiders.

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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