BorgWarner Inc. (NYSE:BWA) Shares Sold by Sprucegrove Investment Management Ltd.

Key Points

• Sprucegrove Investment Management Ltd. has significantly reduced its stake in BorgWarner by 85.8%, now holding only 88,330 shares, while the company's stake accounts for 0.2% of Sprucegrove's portfolio.
• BorgWarner's stock received positive updates from analysts, with price targets raised by major firms such as JPMorgan Chase & Co. and Bank of America, reflecting a consensus rating of "Moderate Buy."
• The company announced a quarterly dividend increase to $0.17 per share and approved a $1 billion share buyback plan, suggesting confidence in their financial health and stock valuation.

Sprucegrove Investment Management Ltd. reduced its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 85.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 88,330 shares of the auto parts company's stock after selling 534,097 shares during the quarter. BorgWarner accounts for approximately 0.2% of Sprucegrove Investment Management Ltd.'s portfolio, making the stock its 29th largest holding. Sprucegrove Investment Management Ltd.'s holdings in BorgWarner were worth $2,531,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Global X Japan Co. Ltd. grew its position in BorgWarner by 133.4% during the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock worth $26,000 after buying an additional 523 shares during the period. Manchester Capital Management LLC acquired a new stake in shares of BorgWarner in the first quarter valued at approximately $30,000. LRI Investments LLC grew its position in shares of BorgWarner by 1,515.0% in the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock valued at $31,000 after purchasing an additional 909 shares during the last quarter. Meeder Asset Management Inc. grew its position in shares of BorgWarner by 63.5% in the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after purchasing an additional 539 shares during the last quarter. Finally, Allworth Financial LP grew its position in shares of BorgWarner by 123.1% in the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after purchasing an additional 793 shares during the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on BWA shares. JPMorgan Chase & Co. increased their price target on shares of BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research report on Monday, August 4th. Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Bank of America increased their price target on shares of BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Morgan Stanley upped their price objective on shares of BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research note on Tuesday. Finally, Guggenheim reduced their price objective on shares of BorgWarner from $38.00 to $33.00 and set a "buy" rating on the stock in a research note on Tuesday, April 22nd. Six research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $39.64.

Insider Buying and Selling at BorgWarner

In related news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction 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 approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Stefan Demmerle sold 5,000 shares of the firm's stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total transaction of $202,500.00. Following the sale, the vice president directly owned 229,040 shares of the company's stock, valued at approximately $9,276,120. The trade was a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 22,500 shares of company stock valued at $892,175 in the last three months. Company insiders own 0.45% of the company's stock.

BorgWarner Stock Performance

NYSE:BWA opened at $41.39 on Friday. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. The company has a market cap of $8.96 billion, a P/E ratio of 44.03, a P/E/G ratio of 1.25 and a beta of 1.10. BorgWarner Inc. has a fifty-two week low of $24.40 and a fifty-two week high of $41.67. The firm's 50 day moving average is $35.58 and its two-hundred day moving average is $31.71.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.06 by $0.15. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. During the same quarter in the prior year, the business earned $1.19 earnings per share. The business's quarterly revenue was up 1.0% compared to the same quarter last year. Analysts expect that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

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

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

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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