Davis R M Inc. Decreases Stock Holdings in BorgWarner Inc. (NYSE:BWA)

Key Points

• Davis R M Inc. has reduced its holdings in BorgWarner Inc. by 46.3% in the first quarter, owning 21,407 shares valued at approximately $613,000 after selling 18,459 shares.
• BorgWarner's stock price has been upgraded by several analysts, with Barclays setting a target price of $45.00 and Bank of America raising theirs to $41.00, suggesting a consensus rating of "Moderate Buy".
• The company recently announced a dividend increase to $0.17 per share and initiated a $1.00 billion share repurchase program, indicating confidence in its stock value.

Davis R M Inc. lessened its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 46.3% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 21,407 shares of the auto parts company's stock after selling 18,459 shares during the quarter. Davis R M Inc.'s holdings in BorgWarner were worth $613,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in BWA. Norges Bank bought a new position in BorgWarner during the fourth quarter worth about $62,180,000. Nomura Asset Management Co. Ltd. lifted its holdings in shares of BorgWarner by 8.2% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 7,338 shares of the auto parts company's stock worth $233,000 after acquiring an additional 554 shares during the last quarter. Pictet Asset Management Holding SA raised its holdings in BorgWarner by 6.1% in the 4th quarter. Pictet Asset Management Holding SA now owns 59,377 shares of the auto parts company's stock valued at $1,888,000 after buying an additional 3,414 shares during the last quarter. O Shaughnessy Asset Management LLC raised its holdings in BorgWarner by 19.5% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 36,196 shares of the auto parts company's stock valued at $1,151,000 after buying an additional 5,908 shares during the last quarter. Finally, Wellington Management Group LLP raised its holdings in BorgWarner by 231.1% in the 4th quarter. Wellington Management Group LLP now owns 91,466 shares of the auto parts company's stock valued at $2,908,000 after buying an additional 63,837 shares during the last quarter. 95.67% of the stock is owned by institutional investors.

Insider Activity at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 5,000 shares of BorgWarner stock in a transaction that occurred on 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 $2,109,546.25. The trade was a 7.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Tonit M. Calaway sold 27,736 shares of BorgWarner stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $32.83, for a total value of $910,572.88. Following the completion of the sale, the executive vice president directly owned 214,521 shares in the company, valued at approximately $7,042,724.43. The trade was a 11.45% decrease in their position. The disclosure for this sale can be found here. 0.45% of the stock is currently owned by company insiders.

BorgWarner Stock Performance

Shares of BorgWarner stock traded up $0.71 during trading on Friday, hitting $37.51. 2,840,282 shares of the company's stock traded hands, compared to its average volume of 1,798,669. 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 1 year low of $24.40 and a 1 year high of $37.57. The stock has a market capitalization of $8.24 billion, a P/E ratio of 39.90, a PEG ratio of 1.74 and a beta of 1.10. The business has a 50-day simple moving average of $34.25 and a 200-day simple moving average of $31.21.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 EPS 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 firm had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter last year, the company earned $1.19 earnings per share. The business's revenue for the quarter was up 1.0% compared to the same quarter last year. As a group, analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner declared that its board has initiated a share buyback 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 buy up to 13.2% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors 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 yield of 1.8%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio (DPR) is 46.81%.

Wall Street Analyst Weigh In

BWA has been the subject of a number of recent analyst reports. UBS Group increased their target price on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a research report on Monday, July 14th. Wells Fargo & Company lifted their target price 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 report on Saturday, July 12th. Barclays reaffirmed an "overweight" rating and set a $45.00 target price (up previously from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Finally, Guggenheim cut their price objective on BorgWarner from $38.00 to $33.00 and set a "buy" rating for the company in a report on Tuesday, April 22nd. Six 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.com, the company has an average rating of "Moderate Buy" and a consensus price target of $39.64.

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.