BorgWarner Inc. $BWA Stock Holdings Raised by Wealth Enhancement Advisory Services LLC

Key Points

• Wealth Enhancement Advisory Services LLC increased its holdings in BorgWarner Inc. by 81.7% in the 2nd quarter, bringing its total to 89,056 shares valued at approximately $3.1 million.
• BorgWarner recently reported better-than-expected quarterly earnings of $1.21 per share, surpassing estimates by $0.15, and announced a stock buyback plan of $1 billion.
• The company raised its quarterly dividend from $0.11 to $0.17, marking a 54.5% increase in the annualized dividend yield to 1.5%.

Wealth Enhancement Advisory Services LLC raised its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 81.7% in the 2nd quarter, according to its most recent filing with the SEC. The fund owned 89,056 shares of the auto parts company's stock after purchasing an additional 40,055 shares during the period. Wealth Enhancement Advisory Services LLC's holdings in BorgWarner were worth $3,145,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Global X Japan Co. Ltd. grew its position in shares of BorgWarner by 133.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after buying an additional 523 shares during the last quarter. Manchester Capital Management LLC bought a new stake in shares of BorgWarner during the 1st quarter valued at about $30,000. Meeder Asset Management Inc. grew its position in shares of BorgWarner by 63.5% during the 1st quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after buying an additional 539 shares during the last quarter. Allworth Financial LP grew its position in shares of BorgWarner by 123.1% during the 1st quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after buying an additional 793 shares during the last quarter. Finally, Brooklyn Investment Group grew its position in shares of BorgWarner by 97.9% during the 1st quarter. Brooklyn Investment Group now owns 1,480 shares of the auto parts company's stock valued at $42,000 after buying an additional 732 shares during the last quarter. Institutional investors own 95.67% of the company's stock.

Insider Activity at BorgWarner

In related news, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president directly owned 55,945 shares of the company's stock, valued at $2,238,359.45. This represents a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Alexis P. Michas sold 8,772 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total transaction of $371,143.32. Following the sale, the director directly owned 78,903 shares of the company's stock, valued at approximately $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 31,272 shares of company stock valued at $1,263,318 over the last ninety days. Insiders own 0.45% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on BWA shares. Piper Sandler boosted their price objective on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Evercore ISI boosted their price objective on shares of BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research report on Monday, August 4th. Wells Fargo & Company lifted their target price on BorgWarner from $50.00 to $54.00 and gave the company an "overweight" rating in a research note on Thursday. Baird R W upgraded BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 3rd. Finally, Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $41.50.

BorgWarner Trading Up 1.6%

BorgWarner stock opened at $44.10 on Friday. The firm has a 50 day simple moving average of $41.07 and a 200-day simple moving average of $34.46. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. The stock has a market capitalization of $9.54 billion, a PE ratio of 46.92, a price-to-earnings-growth ratio of 1.43 and a beta of 1.09. BorgWarner Inc. has a 12-month low of $24.40 and a 12-month high of $44.70.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.15. The business had revenue of $3.64 billion during 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 was up 1.0% on a year-over-year basis. During the same period last year, the firm posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, equities research analysts expect that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner announced that its board has approved a stock repurchase plan on Thursday, July 31st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.5%. This is a boost from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date was Tuesday, September 2nd. BorgWarner's payout ratio is 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.

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