BorgWarner Inc. $BWA Shares Sold by North Dakota State Investment Board

Key Points

• North Dakota State Investment Board cut its BorgWarner stake by 80.9% in the third quarter, selling 26,644 shares and retaining 6,274 shares worth about $377,000. Institutional investors and hedge funds still own 95.67% of the company.
• Analysts maintain a generally positive outlook, with 11 Buy ratings and three Holds producing a consensus “Moderate Buy” rating and a $79 price target, despite some firms lowering targets.
• BorgWarner exceeded quarterly EPS expectations ($1.39 versus $1.25), but revenue declined 2.9% year over year to $3.49 billion. The company also authorized a $1 billion share-repurchase program, covering up to 7.7% of outstanding shares.

North Dakota State Investment Board trimmed its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 80.9% in the third quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 6,274 shares of the auto parts company's stock after selling 26,644 shares during the quarter. North Dakota State Investment Board's holdings in BorgWarner were worth $377,000 as of its most recent filing with the SEC.

Other hedge funds have also recently bought and sold shares of the company. SYM FINANCIAL Corp boosted its stake in BorgWarner by 5.6% in the 3rd quarter. SYM FINANCIAL Corp now owns 3,569 shares of the auto parts company's stock worth $215,000 after purchasing an additional 188 shares during the period. Greenleaf Trust grew its position in BorgWarner by 5.2% in the second quarter. Greenleaf Trust now owns 3,977 shares of the auto parts company's stock valued at $264,000 after purchasing an additional 196 shares in the last quarter. Ariadne Wealth Management LP increased its stake in BorgWarner by 3.8% in the 1st quarter. Ariadne Wealth Management LP now owns 5,958 shares of the auto parts company's stock valued at $323,000 after buying an additional 218 shares during the last quarter. NewEdge Advisors LLC lifted its position in BorgWarner by 2.2% during the 1st quarter. NewEdge Advisors LLC now owns 10,293 shares of the auto parts company's stock worth $558,000 after buying an additional 220 shares in the last quarter. Finally, Pinnacle Wealth Management Advisory Group LLC grew its holdings in shares of BorgWarner by 4.4% in the 2nd quarter. Pinnacle Wealth Management Advisory Group LLC now owns 5,446 shares of the auto parts company's stock valued at $362,000 after acquiring an additional 229 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at BorgWarner

In other news, Director Michael Hanley sold 5,000 shares of BorgWarner stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $65.51, for a total transaction of $327,550.00. Following the sale, the director directly owned 34,313 shares of the company's stock, valued at approximately $2,247,844.63. This trade represents a 12.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Rajesh Kalathur bought 7,407 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The shares were acquired at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the transaction, the director owned 7,407 shares in the company, valued at $500,639.13. This trade represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.76% of the company's stock.

Wall Street Analysts Forecast Growth

BWA has been the subject of several recent research reports. Barclays reduced their price target on BorgWarner from $85.00 to $80.00 and set an "overweight" rating for the company in a research report on Monday. UBS Group cut their price target on shares of BorgWarner from $95.00 to $91.00 and set a "buy" rating for the company in a research note on Wednesday, October 7th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a research report on Thursday, August 6th. JPMorgan Chase & Co. boosted their target price on BorgWarner from $75.00 to $85.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. Finally, Bank of America raised BorgWarner from a "neutral" rating to a "buy" rating and raised their price target for the company from $78.00 to $85.00 in a report on Thursday, October 15th. Eleven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $79.00.

BorgWarner Stock Performance

Shares of NYSE:BWA opened at $51.70 on Tuesday. BorgWarner Inc. has a 1 year low of $40.73 and a 1 year high of $78.82. The stock has a market capitalization of $10.53 billion, a price-to-earnings ratio of 22.00, a price-to-earnings-growth ratio of 0.82 and a beta of 1.16. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76. The company's 50 day simple moving average is $60.99 and its 200 day simple moving average is $60.56.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The auto parts company reported $1.39 EPS for the quarter, topping analysts' consensus estimates of $1.25 by $0.14. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%. The company had revenue of $3.49 billion during the quarter, compared to analysts' expectations of $3.50 billion. During the same quarter in the previous year, the firm earned $1.24 EPS. BorgWarner's revenue was down 2.9% on a year-over-year basis. As a group, research analysts predict that BorgWarner Inc. will post 5.27 EPS for the current fiscal year.

BorgWarner announced that its Board of Directors has approved a stock repurchase plan on Wednesday, August 5th that allows the company to buy back $1 billion in outstanding shares. This buyback authorization allows the auto parts company to buy up to 7.7% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

About BorgWarner

BorgWarner Inc NYSE: BWA is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.

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