Brandywine Global Investment Management LLC Raises Stock Holdings in BorgWarner Inc. $BWA

Key Points

• Brandywine Global Investment Management LLC increased its stake in BorgWarner Inc. by 16.0%, owning 217,099 shares valued at approximately $6.22 million as of the end of the first quarter.
• BorgWarner recently reported an EPS of $1.21 for the quarter, exceeding estimates, with revenues of $3.64 billion, reflecting a year-over-year increase of 1.0%.
• The company's Board has initiated a stock buyback program allowing for $1.00 billion in share repurchases, indicating a belief that the stock is undervalued.

Brandywine Global Investment Management LLC increased its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 16.0% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 217,099 shares of the auto parts company's stock after acquiring an additional 29,996 shares during the quarter. Brandywine Global Investment Management LLC owned about 0.10% of BorgWarner worth $6,220,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. New York State Teachers Retirement System boosted its position in BorgWarner by 3.8% during the first quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock worth $6,280,000 after acquiring an additional 7,977 shares during the last quarter. Avantax Advisory Services Inc. boosted its position in BorgWarner by 13.3% during the first quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock worth $380,000 after acquiring an additional 1,555 shares during the last quarter. Sage Rhino Capital LLC purchased a new position in BorgWarner during the first quarter worth about $235,000. Brown Advisory Inc. purchased a new position in BorgWarner during the first quarter worth about $522,000. Finally, Alpha Omega Wealth Management LLC raised its stake in BorgWarner by 59.8% during the first quarter. Alpha Omega Wealth Management LLC now owns 25,190 shares of the auto parts company's stock worth $722,000 after purchasing an additional 9,427 shares during the period. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Stock Performance

Shares of BWA traded up $1.0740 during mid-day trading on Friday, reaching $42.9140. 1,212,919 shares of the company's stock were exchanged, compared to its average volume of 2,851,737. 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 $9.29 billion, a PE ratio of 45.60, a price-to-earnings-growth ratio of 1.28 and a beta of 1.10. The business's fifty day simple moving average is $36.26 and its 200-day simple moving average is $31.98. BorgWarner Inc. has a 52-week low of $24.40 and a 52-week high of $43.12.

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

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be issued a dividend of $0.17 per share. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. BorgWarner's dividend payout ratio (DPR) is currently 46.81%.

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

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Morgan Stanley lifted their target price on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 12th. Robert W. Baird lifted their target price on shares of BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. JPMorgan Chase & Co. lifted their target price on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research note on Monday, August 4th. Bank of America lifted 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. Finally, UBS Group lifted their price objective on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a report on Monday, July 14th. Ten analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $39.64.

Insider Buying and Selling at BorgWarner

In related news, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction on Tuesday, August 12th. The stock was 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 trade represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Stefan Demmerle sold 5,000 shares of the stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total value of $202,500.00. Following the completion of the transaction, the vice president owned 229,040 shares of the company's stock, valued at $9,276,120. The trade was a 2.14% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 22,500 shares of company stock valued at $892,175. Corporate insiders own 0.45% of the company's stock.

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.