Caxton Associates LLP Buys Shares of 28,394 BorgWarner Inc. $BWA

Key Points

• Caxton Associates LLP has acquired 28,394 shares of BorgWarner Inc. valued at approximately $813,000, indicating growing institutional interest in the auto parts company.
• BorgWarner has announced a quarterly dividend increase from $0.11 to $0.17 per share, with a payout scheduled for September 15th, reflecting its strong financial performance.
• Analysts have adjusted their ratings for BorgWarner, with Robert W. Baird upgrading the stock to "outperform" and raising the price target from $41 to $52, signaling bullish sentiment.

Caxton Associates LLP acquired a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 28,394 shares of the auto parts company's stock, valued at approximately $813,000.

Several other hedge funds also recently bought and sold shares of BWA. Cetera Investment Advisers boosted its stake in BorgWarner by 78.6% during the fourth quarter. Cetera Investment Advisers now owns 37,521 shares of the auto parts company's stock worth $1,193,000 after buying an additional 16,518 shares during the period. Deutsche Bank AG boosted its stake in BorgWarner by 57.3% during the fourth quarter. Deutsche Bank AG now owns 1,302,324 shares of the auto parts company's stock worth $41,401,000 after buying an additional 474,529 shares during the period. Focus Partners Wealth boosted its stake in BorgWarner by 40.1% during the fourth quarter. Focus Partners Wealth now owns 10,759 shares of the auto parts company's stock worth $342,000 after buying an additional 3,080 shares during the period. Janus Henderson Group PLC boosted its stake in BorgWarner by 0.4% during the fourth quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company's stock worth $3,580,000 after buying an additional 501 shares during the period. Finally, LRI Investments LLC boosted its stake in BorgWarner by 1,515.0% during the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock worth $31,000 after buying an additional 909 shares during the period. Hedge funds and other institutional investors own 95.67% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Barclays reaffirmed an "overweight" rating and set a $45.00 target price (up previously from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Bank of America cut shares of BorgWarner from a "buy" rating to a "neutral" rating and increased their price target for the stock from $41.00 to $46.00 in a research report on Wednesday, September 10th. UBS Group increased their price target on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Morgan Stanley increased their price target on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Finally, Piper Sandler increased their price target on shares of BorgWarner from $37.00 to $44.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $41.21.

Insider Buying and Selling

In other news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president directly owned 55,945 shares of the company's stock, valued at $2,238,359.45. This trade represents a 4.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Stefan Demmerle sold 5,000 shares of the firm's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total value of $202,500.00. Following the sale, the vice president directly owned 229,040 shares of the company's stock, valued at $9,276,120. This trade represents a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 31,272 shares of company stock valued at $1,263,318. Corporate insiders own 0.63% of the company's stock.

BorgWarner Stock Down 1.2%

NYSE BWA traded down $0.54 on Tuesday, reaching $43.33. The company had a trading volume of 300,995 shares, compared to its average volume of 2,798,405. The firm has a 50-day moving average of $39.55 and a 200-day moving average of $33.61. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $44.45. The firm has a market capitalization of $9.38 billion, a PE ratio of 46.11, a P/E/G ratio of 1.44 and a beta of 1.09. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.15. The business had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The business's revenue was up 1.0% compared to the same quarter last year. During the same period in the prior year, the company posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities research analysts anticipate that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were given a $0.17 dividend. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date was Tuesday, September 2nd. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. BorgWarner's dividend payout ratio is 72.34%.

BorgWarner declared that its Board of Directors has initiated a stock buyback plan on Thursday, July 31st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

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.