Caisse DE Depot ET Placement DU Quebec Buys New Stake in BorgWarner Inc. $BWA

Key Points

• Caisse DE Depot ET Placement DU Quebec purchased 59,900 shares of BorgWarner Inc., valued at approximately $1.716 million, in the first quarter, according to its recent 13F filing.
• BorgWarner reported earnings per share of $1.21 in its latest quarterly results, exceeding expectations and showing a 1.0% year-over-year revenue increase.
• The company recently announced an increase in its quarterly dividend from $0.11 to $0.17 per share, alongside a $1.00 billion share repurchase plan, signaling confidence in its stock value.

Caisse DE Depot ET Placement DU Quebec bought a new position in BorgWarner Inc. (NYSE:BWA - Free Report) during the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor bought 59,900 shares of the auto parts company's stock, valued at approximately $1,716,000.

A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Dimensional Fund Advisors LP raised its holdings in shares of BorgWarner by 2.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock worth $331,429,000 after acquiring an additional 284,587 shares during the last quarter. LSV Asset Management raised its holdings in shares of BorgWarner by 36.7% in the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after acquiring an additional 1,580,935 shares during the last quarter. Turtle Creek Asset Management Inc. raised its holdings in shares of BorgWarner by 7.0% in the 4th quarter. Turtle Creek Asset Management Inc. now owns 4,078,780 shares of the auto parts company's stock worth $129,664,000 after acquiring an additional 267,250 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of BorgWarner by 91.9% in the 4th quarter. Bank of America Corp DE now owns 3,878,932 shares of the auto parts company's stock worth $123,311,000 after acquiring an additional 1,857,907 shares during the last quarter. Finally, American Century Companies Inc. increased its stake in BorgWarner by 1.7% in the 1st quarter. American Century Companies Inc. now owns 3,716,576 shares of the auto parts company's stock valued at $106,480,000 after buying an additional 60,382 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

Insider Transactions at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction dated Tuesday, August 12th. The shares were 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 in the company, valued at approximately $2,238,359.45. This 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 can be accessed through this link. Also, VP Stefan Demmerle sold 15,000 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total transaction of $589,650.00. Following the completion of the transaction, the vice president owned 234,040 shares in the company, valued at approximately $9,200,112.40. This represents a 6.02% decrease in their position. The disclosure for this sale can be found here. Insiders sold 22,500 shares of company stock worth $892,175 in the last 90 days. Corporate insiders own 0.63% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Robert W. Baird upgraded shares of BorgWarner from a "neutral" rating to an "outperform" rating and increased their price objective for the company from $41.00 to $52.00 in a research note on Wednesday. Bank of America increased their price objective on shares of BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Morgan Stanley increased 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, August 12th. Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Finally, JPMorgan Chase & Co. increased their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Eleven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $40.57.

BorgWarner Price Performance

NYSE:BWA traded up $0.16 during trading hours on Wednesday, hitting $42.82. The stock had a trading volume of 1,146,050 shares, compared to its average volume of 2,826,589. BorgWarner Inc. has a one year low of $24.40 and a one year high of $43.83. 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 firm has a market capitalization of $9.26 billion, a price-to-earnings ratio of 45.54, a P/E/G ratio of 1.29 and a beta of 1.09. The company has a 50 day simple moving average of $37.86 and a two-hundred day simple moving average of $32.72.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm's revenue was up 1.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Research 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 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 purchase up to 13.2% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's management believes its shares are undervalued.

BorgWarner Increases Dividend

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

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.