Castleark Management LLC Takes Position in BorgWarner Inc. $BWA

Key Points

• Castleark Management acquired 158,726 BorgWarner shares in the second quarter, worth approximately $10.5 million, while institutional investors collectively own 95.67% of the company.
• Analysts maintain a generally positive view, with nine Buy ratings and six Holds producing a “Moderate Buy” consensus and an average price target of $75.93.
• BorgWarner exceeded quarterly earnings and revenue expectations and authorized a $1 billion share buyback, alongside a quarterly dividend of $0.17 per share.

Castleark Management LLC acquired a new position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 158,726 shares of the auto parts company's stock, valued at approximately $10,539,000. Castleark Management LLC owned approximately 0.08% of BorgWarner as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in BWA. Sivia Capital Partners LLC bought a new position in shares of BorgWarner during the second quarter worth about $339,000. Louisiana State Employees Retirement System bought a new position in shares of BorgWarner during the 1st quarter worth approximately $3,256,000. Securian Asset Management Inc. bought a new stake in shares of BorgWarner in the fourth quarter worth $702,000. Northwestern Mutual Investment Management Company LLC acquired a new position in BorgWarner during the fourth quarter worth $2,157,000. Finally, Bessemer Group Inc. grew its position in BorgWarner by 5,773.0% in the fourth quarter. Bessemer Group Inc. now owns 201,386 shares of the auto parts company's stock valued at $9,074,000 after purchasing an additional 197,957 shares in the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on BWA. TD Cowen increased their price objective on shares of BorgWarner from $67.00 to $68.00 and gave the stock a "hold" rating in a research note on Thursday, August 6th. The Goldman Sachs Group reiterated a "buy" rating and set a $84.00 target price on shares of BorgWarner in a report on Thursday, June 11th. JPMorgan Chase & Co. increased their price target on BorgWarner from $75.00 to $85.00 and gave the company an "overweight" rating in a research report on Monday, August 10th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a research report on Thursday, August 6th. Finally, Morgan Stanley increased their price objective on BorgWarner from $67.00 to $71.00 and gave the company an "equal weight" rating in a report on Thursday, August 6th. Nine research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $75.93.

BorgWarner Price Performance

NYSE:BWA opened at $65.07 on Wednesday. BorgWarner Inc. has a 12-month low of $40.50 and a 12-month high of $78.82. The firm has a market capitalization of $13.25 billion, a price-to-earnings ratio of 32.54, a P/E/G ratio of 1.16 and a beta of 1.10. The stock's 50 day moving average price is $66.01 and its two-hundred day moving average price is $61.87. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67.

BorgWarner (NYSE:BWA - Get Free Report) last posted its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $3.58 billion. During the same period in the previous year, the firm earned $1.21 EPS. The firm's revenue was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, analysts anticipate that BorgWarner Inc. will post 5.19 earnings per share for the current year.

BorgWarner Dividend Announcement

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

BorgWarner declared that its Board of Directors has authorized a share buyback 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 stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Insider Activity

In related news, Director Rajesh Kalathur bought 7,407 shares of the business's stock in a transaction dated Wednesday, August 19th. The stock was bought at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the purchase, the director owned 7,407 shares in the company, valued at $500,639.13. This represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Amy B. Kulikowski sold 2,900 shares of BorgWarner 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 sale, the chief accounting officer directly owned 9,725 shares of the company's stock, valued at $667,135. The trade was a 22.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.76% of the stock is owned by corporate insiders.

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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