Clean Yield Group Takes Position in BorgWarner Inc. $BWA

Key Points

• Clean Yield Group acquired a new stake in BorgWarner Inc., purchasing 68,425 shares valued at approximately $2.29 million.
• BorgWarner announced an increase in its quarterly dividend from $0.11 to $0.17, representing an annualized rate of $0.68 and a dividend yield of 1.5%.
• The company's stock has seen a consistent upward trend, with shares up by 1.6% on the market and a projected earnings per share (EPS) of 4.28 for the current year.

Clean Yield Group acquired a new stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 68,425 shares of the auto parts company's stock, valued at approximately $2,291,000.

A number of other institutional investors have also recently made changes to their positions in the company. Sage Rhino Capital LLC grew its position in shares of BorgWarner by 26.4% during the second quarter. Sage Rhino Capital LLC now owns 10,364 shares of the auto parts company's stock valued at $347,000 after purchasing an additional 2,162 shares in the last quarter. Twelve Points Wealth Management LLC grew its position in shares of BorgWarner by 6.9% during the second quarter. Twelve Points Wealth Management LLC now owns 66,365 shares of the auto parts company's stock valued at $2,222,000 after purchasing an additional 4,296 shares in the last quarter. Signaturefd LLC grew its position in shares of BorgWarner by 72.8% during the second quarter. Signaturefd LLC now owns 2,513 shares of the auto parts company's stock valued at $84,000 after purchasing an additional 1,059 shares in the last quarter. Paragon Capital Management Ltd purchased a new position in shares of BorgWarner during the second quarter valued at about $229,000. Finally, State of Alaska Department of Revenue grew its position in shares of BorgWarner by 6.5% during the second quarter. State of Alaska Department of Revenue now owns 157,857 shares of the auto parts company's stock valued at $5,283,000 after purchasing an additional 9,687 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

BorgWarner Stock Up 1.6%

Shares of NYSE:BWA opened at $44.10 on Monday. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $44.70. The business has a 50 day simple moving average of $41.07 and a two-hundred day simple moving average of $34.54. The firm has a market capitalization of $9.54 billion, a PE ratio of 46.92, a price-to-earnings-growth ratio of 1.45 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 announced its 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. 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 analyst estimates of $3.56 billion. During the same quarter in the previous year, the business earned $1.19 earnings per share. The company's revenue for the quarter was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities analysts predict that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were issued a $0.17 dividend. The ex-dividend date was Tuesday, September 2nd. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.5%. BorgWarner's dividend payout ratio (DPR) is presently 72.34%.

BorgWarner announced that its Board of Directors has initiated a share repurchase plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

BWA has been the subject of several recent research reports. Barclays reiterated an "overweight" rating and issued a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Bank of America lowered BorgWarner from a "buy" rating to a "neutral" rating and lifted their price target for the stock from $41.00 to $46.00 in a research report on Wednesday, September 10th. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Zacks Research upgraded BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Friday, September 12th. Finally, Morgan Stanley lifted their price target on BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $41.50.

Insider Activity at BorgWarner

In related news, VP Stefan Demmerle sold 5,000 shares of the business's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total value 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. The trade was a 2.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Isabelle Mckenzie sold 2,500 shares of the business's 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 owned 55,945 shares of the company's stock, valued at $2,238,359.45. The trade was a 4.28% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 31,272 shares of company stock worth $1,263,318. Company insiders own 0.63% of the company's stock.

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.

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