California State Teachers Retirement System Increases Stock Holdings in BorgWarner Inc. $BWA

Key Points

• California State Teachers Retirement System dramatically increased its BorgWarner stake by 6,262.3% in the second quarter, ending with 15.87 million shares worth approximately $1.05 billion, or 7.79% of the company.
• BorgWarner exceeded quarterly expectations, reporting $1.42 in EPS versus the $1.28 consensus and $3.65 billion in revenue. The company also authorized a $1 billion share repurchase program covering up to 7.7% of outstanding shares.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $78.86, compared with the stock’s reported opening price of $66.69.

California State Teachers Retirement System boosted its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 6,262.3% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 15,870,795 shares of the auto parts company's stock after purchasing an additional 15,621,343 shares during the period. California State Teachers Retirement System owned approximately 7.79% of BorgWarner worth $1,053,821,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Clearstead Trust LLC acquired a new position in BorgWarner in the second quarter valued at approximately $28,000. Ceredex Value Advisors LLC acquired a new position in shares of BorgWarner in the 2nd quarter valued at $40,000. Fiduciary Financial Advisors purchased a new position in shares of BorgWarner during the 2nd quarter worth $49,000. Prosperity Bancshares Inc acquired a new stake in shares of BorgWarner during the 4th quarter worth about $37,000. Finally, Jones Financial Companies Lllp purchased a new stake in BorgWarner in the 2nd quarter valued at about $57,000. Institutional investors and hedge funds own 95.67% of the company's stock.

BorgWarner Stock Performance

Shares of BWA stock opened at $66.69 on Friday. The company has a market cap of $13.58 billion, a P/E ratio of 33.35, a PEG ratio of 1.20 and a beta of 1.12. The firm has a fifty day moving average price of $65.30 and a 200 day moving average price of $62.42. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67. BorgWarner Inc. has a 12 month low of $40.50 and a 12 month high of $78.82.

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

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

BorgWarner Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.17 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. BorgWarner's dividend payout ratio (DPR) is presently 34.00%.

Insider Transactions at BorgWarner

In related news, Director Rajesh Kalathur bought 7,407 shares of the stock in a transaction dated Wednesday, August 19th. The stock was acquired at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the acquisition, the director owned 7,407 shares in the company, valued at approximately $500,639.13. This represents a ∞ increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Michael Hanley sold 5,000 shares of the 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 directly owned 34,313 shares in the company, valued at $2,247,844.63. This trade represents a 12.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.76% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have weighed in on BWA shares. TD Cowen lifted their price target on shares of BorgWarner from $67.00 to $68.00 and gave the company a "hold" rating in a research report on Thursday, August 6th. Barclays raised their price objective on shares of BorgWarner from $83.00 to $85.00 and gave the company an "overweight" rating in a research note on Monday, August 10th. Wolfe Research reaffirmed an "outperform" rating and set a $95.00 target price on shares of BorgWarner in a research note on Wednesday, June 3rd. UBS Group upgraded shares of BorgWarner from a "neutral" rating to a "buy" rating and increased their target price for the stock from $61.00 to $95.00 in a report on Wednesday, June 10th. Finally, Sanford C. Bernstein upgraded shares of BorgWarner to a "buy" rating in a research note on Wednesday, June 10th. Nine research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, BorgWarner currently has a consensus rating of "Moderate Buy" and a consensus target price of $78.86.

About BorgWarner

BorgWarner Inc NYSE: BWA is a global automotive technology company headquartered in Auburn Hills, Michigan. The company develops and supplies propulsion and drivetrain systems for passenger vehicles, commercial vehicles and off-highway applications, serving automakers and other transportation manufacturers worldwide.

Its product portfolio includes turbochargers, transmission systems, dual-clutch modules, four-wheel-drive systems, emissions technologies, and components for hybrid and internal-combustion vehicles.

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