Public Sector Pension Investment Board Has $19.87 Million Stake in BorgWarner Inc. (NYSE:BWA)

Key Points

• The Public Sector Pension Investment Board significantly increased its stake in BorgWarner by 1,121.2%, acquiring an additional 636,757 shares and bringing its total ownership to approximately 0.32% valued at $19.87 million.
• BorgWarner has announced a $1.00 billion stock repurchase program, allowing the company to buy back up to 13.2% of its shares, signaling that the management believes the stock is undervalued.
• The company also increased its quarterly dividend from $0.11 to $0.17 per share, reflecting a strong financial position and returning value to shareholders.

Public Sector Pension Investment Board raised its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 1,121.2% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 693,551 shares of the auto parts company's stock after buying an additional 636,757 shares during the quarter. Public Sector Pension Investment Board owned 0.32% of BorgWarner worth $19,870,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Todd Asset Management LLC grew its holdings in shares of BorgWarner by 0.6% during the 1st quarter. Todd Asset Management LLC now owns 997,870 shares of the auto parts company's stock worth $28,589,000 after purchasing an additional 5,704 shares in the last quarter. CCM Investment Group LLC acquired a new stake in shares of BorgWarner during the 1st quarter worth approximately $382,000. Nuveen LLC acquired a new stake in shares of BorgWarner during the 1st quarter worth approximately $14,377,000. Strengthening Families & Communities LLC grew its holdings in shares of BorgWarner by 14.6% during the 1st quarter. Strengthening Families & Communities LLC now owns 3,301 shares of the auto parts company's stock worth $95,000 after purchasing an additional 421 shares in the last quarter. Finally, Entropy Technologies LP acquired a new stake in shares of BorgWarner during the 1st quarter worth approximately $1,822,000. Institutional investors and hedge funds own 95.67% of the company's stock.

BorgWarner Price Performance

BWA traded down $0.06 during trading on Friday, hitting $41.39. The company's stock had a trading volume of 2,596,299 shares, compared to its average volume of 2,250,007. The firm's 50 day moving average price is $35.58 and its two-hundred day moving average price is $31.71. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a 12 month low of $24.40 and a 12 month high of $41.67. The stock has a market capitalization of $8.96 billion, a price-to-earnings ratio of 44.03, a price-to-earnings-growth ratio of 1.25 and a beta of 1.10.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The company had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%. The firm's quarterly revenue was up 1.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.19 earnings per share. Sell-side analysts forecast that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner announced that its Board of Directors has approved a share 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 repurchase up to 13.2% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is presently 46.81%.

Insiders Place Their Bets

In other news, VP Stefan Demmerle sold 5,000 shares of the business's stock in a transaction on 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 sale, the vice president owned 229,040 shares in the company, valued at $9,276,120. The trade was a 2.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the business's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value of $100,025.00. Following the sale, the vice president owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. The trade was a 4.28% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 22,500 shares of company stock valued at $892,175. 0.45% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several brokerages have recently weighed in on BWA. UBS Group lifted their price objective on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. Robert W. Baird lifted their price objective on BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Evercore ISI lifted their price objective on BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a report on Monday, August 4th. Morgan Stanley boosted their price target on BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research note on Tuesday. Finally, JPMorgan Chase & Co. boosted their price target on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Six equities research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $39.64.

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.