Chicago Partners Investment Group LLC Takes $362,000 Position in BorgWarner Inc. $BWA

Key Points

• Chicago Partners Investment Group LLC has acquired a new stake of approximately $362,000 in BorgWarner Inc., purchasing 9,897 shares in the second quarter.
• BorgWarner recently declared an increase in its quarterly dividend from $0.11 to $0.17 per share, representing a dividend yield of 1.6%.
• Analyst ratings for BorgWarner have been mixed, with Zacks lowering its rating to "hold," while others like JPMorgan and Goldman Sachs have set price objectives as high as $53.00 and $52.00, respectively.

Chicago Partners Investment Group LLC bought a new stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 9,897 shares of the auto parts company's stock, valued at approximately $362,000.

Several other large investors have also recently made changes to their positions in the business. Dimensional Fund Advisors LP increased its position in shares of BorgWarner by 2.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock valued at $331,429,000 after purchasing an additional 284,587 shares during the last quarter. LSV Asset Management increased its holdings in BorgWarner by 36.7% in the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after acquiring an additional 1,580,935 shares during the last quarter. American Century Companies Inc. increased its holdings in BorgWarner by 1.7% in the 1st quarter. American Century Companies Inc. now owns 3,716,576 shares of the auto parts company's stock worth $106,480,000 after acquiring an additional 60,382 shares during the last quarter. Swedbank AB increased its holdings in BorgWarner by 23.3% in the 2nd quarter. Swedbank AB now owns 2,558,425 shares of the auto parts company's stock worth $85,656,000 after acquiring an additional 482,969 shares during the last quarter. Finally, Millennium Management LLC increased its holdings in BorgWarner by 144.7% in the 1st quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company's stock worth $57,579,000 after acquiring an additional 1,188,466 shares during the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on BWA. Zacks Research lowered BorgWarner from a "strong-buy" rating to a "hold" rating in a report on Monday, October 13th. JPMorgan Chase & Co. lifted their price objective on BorgWarner from $45.00 to $53.00 and gave the stock an "overweight" rating in a report on Monday. The Goldman Sachs Group lifted their price objective on BorgWarner from $45.00 to $52.00 and gave the stock a "buy" rating in a report on Monday, September 29th. Wells Fargo & Company lifted their price objective on BorgWarner from $50.00 to $54.00 and gave the stock an "overweight" rating in a report on Thursday, September 25th. Finally, Bank of America lowered BorgWarner from a "buy" rating to a "neutral" rating and lifted their price objective for the stock from $41.00 to $46.00 in a report on Wednesday, September 10th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $45.21.

BorgWarner Stock Up 0.3%

Shares of NYSE BWA opened at $43.65 on Friday. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $44.97. The business has a 50-day simple moving average of $43.20 and a two-hundred day simple moving average of $36.37. 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 company has a market cap of $9.44 billion, a P/E ratio of 46.43, a P/E/G ratio of 1.61 and a beta of 1.09.

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

BorgWarner Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were given a dividend of $0.17 per share. This is a boost 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 announced that its Board of Directors has initiated a share buyback plan on Thursday, July 31st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Insider Activity

In other news, VP Stefan Demmerle sold 5,000 shares of BorgWarner stock in a transaction dated 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 owned 229,040 shares in the company, valued at approximately $9,276,120. This trade represents a 2.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the sale, the vice president owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 31,272 shares of company stock worth $1,263,318. 0.45% of the stock is currently owned by insiders.

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.

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