Charles Schwab Investment Management Inc. Sells 332,381 Shares of BorgWarner Inc. (NYSE:BWA)

Key Points

• Charles Schwab Investment Management Inc. reduced its holdings in BorgWarner Inc. by 14.9% in the first quarter, now owning approximately 0.86% of the company with a value of $54.35 million.
• BorgWarner declared a quarterly dividend increase, now set at $0.17 per share, up from the previous $0.11, indicating a growing return to shareholders.
• In recent analyst reports, price targets for BorgWarner's stock have been raised, with estimates suggesting a moderate buy outlook and an average target price of $39.64.

Charles Schwab Investment Management Inc. cut its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 14.9% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,897,119 shares of the auto parts company's stock after selling 332,381 shares during the period. Charles Schwab Investment Management Inc. owned 0.86% of BorgWarner worth $54,352,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in the business. Global X Japan Co. Ltd. lifted its holdings in shares of BorgWarner by 133.4% during the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock worth $26,000 after purchasing an additional 523 shares during the period. LRI Investments LLC increased its stake in BorgWarner by 1,515.0% in the fourth 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. Manchester Capital Management LLC bought a new stake in shares of BorgWarner during the first quarter worth about $30,000. Meeder Asset Management Inc. increased its position in shares of BorgWarner by 63.5% during the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock worth $40,000 after acquiring an additional 539 shares in the last quarter. Finally, Allworth Financial LP increased its position in shares of BorgWarner by 123.1% during the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock worth $41,000 after acquiring an additional 793 shares in the last quarter. 95.67% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, VP Stefan Demmerle sold 5,000 shares of the stock in a transaction that occurred on Wednesday, August 13th. The stock was 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 directly owned 229,040 shares of the company's stock, valued at approximately $9,276,120. This represents a 2.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction that occurred 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 directly owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. The trade was a 4.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold 22,500 shares of company stock valued at $892,175 over the last three months. 0.63% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Guggenheim dropped their price target on shares of BorgWarner from $38.00 to $33.00 and set a "buy" rating on the stock in a research note on Tuesday, April 22nd. Barclays reiterated an "overweight" rating and issued a $45.00 target price (up from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Robert W. Baird increased their target price on shares of BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. Finally, Morgan Stanley increased their target price on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 12th. Six research analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $39.64.

BorgWarner Price Performance

Shares of NYSE BWA traded down $0.06 during trading on Friday, hitting $41.39. The company had a trading volume of 2,596,299 shares, compared to its average volume of 2,299,126. The stock has a fifty day simple moving average of $35.58 and a two-hundred day simple moving average of $31.69. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. The firm has a market capitalization of $8.96 billion, a price-to-earnings ratio of 44.03, a price-to-earnings-growth ratio of 1.25 and a beta of 1.10. BorgWarner Inc. has a fifty-two week low of $24.40 and a fifty-two week high of $41.67.

BorgWarner (NYSE:BWA - Get Free Report) last posted its earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion for 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 company's revenue was up 1.0% on a year-over-year basis. During the same period last year, the firm posted $1.19 EPS. On average, research analysts expect that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner declared that its board has approved a share buyback program on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board of directors believes its shares are undervalued.

BorgWarner Increases Dividend

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

BorgWarner 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.