43,000 Shares in BorgWarner Inc. (NYSE:BWA) Acquired by Clark Estates Inc. NY

Key Points

• Clark Estates Inc. NY acquired 43,000 shares of BorgWarner Inc., valued at approximately $1,232,000, indicating positive institutional interest in the auto parts sector.
• BorgWarner's quarterly earnings surpassed expectations, reporting $1.11 per share on $3.52 billion revenue, although revenue was down 2.2% year-over-year.
• The company recently declared a quarterly dividend of $0.11, resulting in a 1.25% yield, with a payout ratio of 35.20%.

Clark Estates Inc. NY purchased a new stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 43,000 shares of the auto parts company's stock, valued at approximately $1,232,000.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Mitsubishi UFJ Trust & Banking Corp increased its holdings in BorgWarner by 150.4% in the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 43,721 shares of the auto parts company's stock worth $1,390,000 after buying an additional 26,261 shares in the last quarter. NEOS Investment Management LLC grew its stake in shares of BorgWarner by 28.5% during the 4th quarter. NEOS Investment Management LLC now owns 11,183 shares of the auto parts company's stock valued at $356,000 after purchasing an additional 2,483 shares during the period. Norges Bank bought a new stake in shares of BorgWarner during the 4th quarter valued at about $62,180,000. Nomura Asset Management Co. Ltd. grew its stake in shares of BorgWarner by 8.2% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 7,338 shares of the auto parts company's stock valued at $233,000 after purchasing an additional 554 shares during the period. Finally, Pictet Asset Management Holding SA grew its stake in shares of BorgWarner by 6.1% during the 4th quarter. Pictet Asset Management Holding SA now owns 59,377 shares of the auto parts company's stock valued at $1,888,000 after purchasing an additional 3,414 shares during the period. 95.67% of the stock is currently owned by institutional investors.

BorgWarner Stock Performance

Shares of BorgWarner stock traded up $0.71 on Friday, reaching $37.51. 2,840,282 shares of the stock were exchanged, compared to its average volume of 1,798,669. The company has a quick ratio of 1.60, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a twelve month low of $24.40 and a twelve month high of $37.57. The firm has a market capitalization of $8.24 billion, a price-to-earnings ratio of 39.90, a PEG ratio of 1.71 and a beta of 1.10. The business has a 50 day moving average price of $34.25 and a two-hundred day moving average price of $31.22.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings results 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 analysts' expectations of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%. BorgWarner's quarterly revenue was up 1.0% on a year-over-year basis. During the same period last year, the business earned $1.19 earnings per share. Analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be given a dividend of $0.17 per share. This is a boost from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a yield of 1.8%. BorgWarner's dividend payout ratio (DPR) is currently 35.20%.

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

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on BWA shares. Piper Sandler boosted their price target on BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research note on Friday. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. UBS Group increased their target price on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. Guggenheim reduced their target price on shares of BorgWarner from $38.00 to $33.00 and set a "buy" rating for the company in a report on Tuesday, April 22nd. Finally, 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 report on Friday, July 11th. Six equities research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $39.64.

Insider Activity at BorgWarner

In related news, VP Isabelle Mckenzie sold 5,000 shares of BorgWarner stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $33.25, for a total transaction of $166,250.00. Following the completion of the transaction, the vice president directly owned 63,445 shares in the company, valued at approximately $2,109,546.25. This trade represents a 7.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Tonit M. Calaway sold 27,736 shares of the company's stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $32.83, for a total value of $910,572.88. Following the transaction, the executive vice president directly owned 214,521 shares of the company's stock, valued at approximately $7,042,724.43. The trade was a 11.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.45% of the stock is currently owned by company 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.