BorgWarner Inc. (NYSE:BWA) Shares Bought by LSV Asset Management

Key Points

• LSV Asset Management increased its investment in BorgWarner by 36.7%, acquiring 1,580,935 additional shares in the first quarter, bringing their total holding to 5,889,080 shares valued at approximately $168.7 million.
• BorgWarner's board approved a $1 billion stock buyback program, allowing for the repurchase of up to 13.2% of its shares, indicating confidence in the company's stock valuation.
• The company recently declared a quarterly dividend of $0.17 per share, which represents a 54.55% increase from the previous dividend of $0.11.

LSV Asset Management grew its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 36.7% in the first quarter, according to its most recent filing with the SEC. The firm owned 5,889,080 shares of the auto parts company's stock after acquiring an additional 1,580,935 shares during the quarter. LSV Asset Management owned about 2.68% of BorgWarner worth $168,722,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Norges Bank bought a new stake in shares of BorgWarner in the 4th quarter worth $62,180,000. New York State Teachers Retirement System raised its stake in shares of BorgWarner by 3.8% in the 1st quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock worth $6,280,000 after buying an additional 7,977 shares in the last quarter. Sage Rhino Capital LLC bought a new stake in shares of BorgWarner in the 1st quarter worth $235,000. Brown Advisory Inc. bought a new stake in shares of BorgWarner in the 1st quarter worth $522,000. Finally, Alpha Omega Wealth Management LLC raised its stake in shares of BorgWarner by 59.8% in the 1st quarter. Alpha Omega Wealth Management LLC now owns 25,190 shares of the auto parts company's stock worth $722,000 after buying an additional 9,427 shares in the last quarter. Institutional investors own 95.67% of the company's stock.

Insider Activity

In other news, EVP Tonit M. Calaway sold 27,736 shares of the company's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $32.83, for a total transaction of $910,572.88. Following the completion of the sale, the executive vice president owned 214,521 shares in the company, valued at approximately $7,042,724.43. This represents a 11.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Isabelle Mckenzie sold 5,000 shares of the company's stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $33.25, for a total value of $166,250.00. Following the sale, the vice president owned 63,445 shares of the company's stock, valued at approximately $2,109,546.25. This trade represents a 7.31% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.45% of the company's stock.

Analyst Ratings Changes

A number of analysts have recently commented on BWA shares. Wells Fargo & Company boosted their price objective on BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a research note on Friday. Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. UBS Group boosted their target price on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Robert W. Baird boosted their target price on BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Finally, The Goldman Sachs Group raised BorgWarner from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $31.00 to $34.00 in a research report on Thursday, April 10th. Six investment analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $39.64.

BorgWarner Stock Performance

Shares of BWA stock opened at $37.51 on Friday. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.60. BorgWarner Inc. has a fifty-two week low of $24.40 and a fifty-two week high of $37.57. The stock's 50-day moving average is $34.25 and its two-hundred day moving average is $31.22. The firm has a market cap of $8.24 billion, a P/E ratio of 39.90, a PEG ratio of 1.71 and a beta of 1.09.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share 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 analyst estimates of $3.56 billion. During the same period in the prior year, the firm posted $1.19 EPS. The business's revenue was up 1.0% compared to the same quarter last year. Analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner announced that its board has initiated a stock repurchase program on Thursday, July 31st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board 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 paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.8%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio is 46.81%.

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.

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