Cairn Investment Group Inc. Purchases New Stake in BorgWarner Inc. $BWA

Key Points

• Cairn Investment Group acquired 108,925 BorgWarner shares worth approximately $7.2 million during the second quarter, making BWA its 11th-largest holding and representing about 3.1% of its portfolio.
• BorgWarner exceeded quarterly earnings and revenue expectations, reporting $1.42 in EPS on $3.65 billion in revenue. Analysts maintain a “Moderate Buy” consensus with an average price target of $76.67.
• The company authorized a $1 billion share-repurchase program covering up to 7.7% of outstanding shares and declared a quarterly dividend of $0.17 per share, yielding approximately 1.1% annually.

Cairn Investment Group Inc. acquired a new stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 108,925 shares of the auto parts company's stock, valued at approximately $7,233,000. BorgWarner comprises about 3.1% of Cairn Investment Group Inc.'s portfolio, making the stock its 11th biggest holding. Cairn Investment Group Inc. owned approximately 0.05% of BorgWarner at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in the stock. Clearstead Trust LLC bought a new stake in shares of BorgWarner in the 2nd quarter worth about $28,000. Prosperity Bancshares Inc bought a new position in shares of BorgWarner during the fourth quarter worth about $37,000. Ceredex Value Advisors LLC acquired a new position in BorgWarner in the second quarter worth about $40,000. Fiduciary Financial Advisors acquired a new position in BorgWarner in the second quarter worth about $49,000. Finally, Cedar Mountain Advisors LLC bought a new stake in BorgWarner in the first quarter valued at about $55,000. 95.67% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, Director Michael S. Hanley sold 5,000 shares of the business's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $65.51, for a total transaction of $327,550.00. Following the completion of the transaction, the director owned 34,313 shares of the company's stock, valued at approximately $2,247,844.63. The trade was a 12.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CAO Amy B. Kulikowski sold 2,900 shares of the company's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total transaction of $198,940.00. Following the transaction, the chief accounting officer owned 9,725 shares of the company's stock, valued at $667,135. This represents a 22.97% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.76% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages have issued reports on BWA. Morgan Stanley upped their price objective on BorgWarner from $67.00 to $71.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. The Goldman Sachs Group reiterated a "buy" rating and issued a $84.00 price target on shares of BorgWarner in a report on Thursday, June 11th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a research report on Thursday, August 6th. Weiss Ratings upgraded BorgWarner from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, June 29th. Finally, TD Cowen lifted their price objective on shares of BorgWarner from $67.00 to $68.00 and gave the stock a "hold" rating in a report on Thursday, August 6th. Ten equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, BorgWarner has a consensus rating of "Moderate Buy" and an average target price of $76.67.

BorgWarner Price Performance

BWA opened at $63.68 on Wednesday. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. The company's 50-day moving average price is $65.29 and its 200 day moving average price is $62.19. BorgWarner Inc. has a fifty-two week low of $40.50 and a fifty-two week high of $78.82. The firm has a market cap of $12.97 billion, a price-to-earnings ratio of 31.84, a price-to-earnings-growth ratio of 1.15 and a beta of 1.12.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, beating analysts' consensus estimates of $1.28 by $0.14. The company had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.58 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.BorgWarner's quarterly revenue was up .3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, sell-side analysts expect that BorgWarner Inc. will post 5.2 earnings per share for the current year.

BorgWarner declared that its board has approved a stock repurchase program on Wednesday, August 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to reacquire up to 7.7% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its shares are undervalued.

BorgWarner Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a dividend of $0.17 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a yield of 1.1%. BorgWarner's payout ratio is currently 34.00%.

BorgWarner Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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