Canada Pension Plan Investment Board Has $6.46 Million Position in BorgWarner Inc. $BWA

Key Points

• The Canada Pension Plan Investment Board reduced its stake in BorgWarner Inc. by 13.9%, owning 225,500 shares worth $6.46 million after selling 36,500 shares in the first quarter.
• BorgWarner recently announced a share repurchase program authorized for up to $1 billion, which represents about 13.2% of its shares, suggesting management believes the stock is undervalued.
• In addition to the share buyback, BorgWarner increased its quarterly dividend from $0.11 to $0.17, indicating a commitment to returning value to shareholders.

Canada Pension Plan Investment Board reduced its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 13.9% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 225,500 shares of the auto parts company's stock after selling 36,500 shares during the period. Canada Pension Plan Investment Board owned about 0.10% of BorgWarner worth $6,461,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently made changes to their positions in BWA. Global X Japan Co. Ltd. boosted its stake in shares of BorgWarner by 133.4% in the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares in the last quarter. Manchester Capital Management LLC acquired a new stake in shares of BorgWarner in the 1st quarter valued at approximately $30,000. LRI Investments LLC boosted its stake in shares of BorgWarner by 1,515.0% in the 4th 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 in the last quarter. Meeder Asset Management Inc. boosted its stake in shares of BorgWarner by 63.5% in the 1st 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 in the last quarter. Finally, Allworth Financial LP boosted its stake in shares of BorgWarner by 123.1% in the 1st 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 in the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on BWA shares. Barclays reiterated an "overweight" rating and issued a $45.00 price objective (up previously from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Bank of America raised their price objective on shares of BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a report on Monday, June 16th. Morgan Stanley raised their price objective on shares of BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a report on Tuesday, August 12th. Baird R W upgraded shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Wednesday. Finally, JPMorgan Chase & Co. raised their price target on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a report on Monday, August 4th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, BorgWarner currently has a consensus rating of "Moderate Buy" and an average price target of $40.57.

BorgWarner Trading Up 0.3%

BorgWarner stock traded up $0.15 during mid-day trading on Friday, hitting $44.00. 2,033,625 shares of the stock were exchanged, compared to its average volume of 2,249,205. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a 12 month low of $24.40 and a 12 month high of $44.32. The firm's fifty day simple moving average is $38.46 and its two-hundred day simple moving average is $32.98. The stock has a market capitalization of $9.52 billion, a price-to-earnings ratio of 46.81, a PEG ratio of 1.33 and a beta of 1.09.

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 for the quarter, beating the consensus estimate of $1.06 by $0.15. The company had revenue of $3.64 billion during 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%. BorgWarner's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be paid a $0.17 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.5%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio (DPR) is presently 72.34%.

BorgWarner announced that its board has authorized a stock repurchase plan on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the sale, the vice president owned 55,945 shares in the company, valued at $2,238,359.45. The trade was a 4.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Stefan Demmerle sold 5,000 shares of BorgWarner 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 completion of the sale, the vice president owned 229,040 shares of the company's stock, valued at $9,276,120. This represents a 2.14% decrease in their position. The disclosure for this sale can be found here. Insiders sold 31,272 shares of company stock worth $1,263,318 in the last quarter. 0.45% of the stock is owned by corporate insiders.

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.