BorgWarner Inc. $BWA Shares Purchased by Comerica Bank

Key Points

• Comerica Bank has increased its holdings in BorgWarner Inc. by 12.4%, now owning 105,853 shares valued at $3.03 million as of its latest SEC filing.
• BorgWarner recently declared a quarterly dividend of $0.17 per share, raising it from the previous $0.11, signaling positive financial growth.
• The company reported an EPS of $1.21 for the last quarter, exceeding the consensus estimate of $1.06, with revenue reaching $3.64 billion.

Comerica Bank grew its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 12.4% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 105,853 shares of the auto parts company's stock after purchasing an additional 11,655 shares during the quarter. Comerica Bank's holdings in BorgWarner were worth $3,033,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in BWA. Bank of America Corp DE raised its holdings in BorgWarner by 91.9% during the fourth quarter. Bank of America Corp DE now owns 3,878,932 shares of the auto parts company's stock worth $123,311,000 after purchasing an additional 1,857,907 shares in the last quarter. LSV Asset Management raised its holdings in BorgWarner by 36.7% during the first quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after purchasing an additional 1,580,935 shares in the last quarter. Leith Wheeler Investment Counsel Ltd. acquired a new stake in BorgWarner during the first quarter worth approximately $28,989,000. Principal Financial Group Inc. raised its holdings in BorgWarner by 338.5% during the first quarter. Principal Financial Group Inc. now owns 1,085,149 shares of the auto parts company's stock worth $31,090,000 after purchasing an additional 837,668 shares in the last quarter. Finally, Public Sector Pension Investment Board raised its holdings in BorgWarner by 1,121.2% during the first quarter. Public Sector Pension Investment Board now owns 693,551 shares of the auto parts company's stock worth $19,870,000 after purchasing an additional 636,757 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

Wall Street Analysts Forecast Growth

BWA has been the topic of a number of research reports. Morgan Stanley raised their target price 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. Piper Sandler raised their target price 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. Robert W. Baird upgraded shares of BorgWarner from a "neutral" rating to an "outperform" rating and raised their target price for the stock from $41.00 to $52.00 in a research report on Wednesday. Baird R W upgraded shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Wednesday. Finally, Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $40.57.

BorgWarner Stock Performance

NYSE:BWA traded up $0.60 during midday trading on Thursday, reaching $43.59. The stock had a trading volume of 867,771 shares, compared to its average volume of 2,821,298. The firm has a fifty day simple moving average of $38.05 and a two-hundred day simple moving average of $32.79. BorgWarner Inc. has a 12-month low of $24.40 and a 12-month high of $43.83. 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 stock has a market cap of $9.43 billion, a P/E ratio of 46.37, a P/E/G ratio of 1.29 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. The company had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The business's revenue was up 1.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities analysts expect that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Tuesday, September 2nd. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is presently 46.81%.

BorgWarner declared that its board has initiated a stock repurchase program on Thursday, July 31st that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares buyback programs are often a sign that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In other news, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction on 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 transaction, 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 transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total value of $371,143.32. Following the transaction, the director directly owned 78,903 shares of the company's stock, valued at $3,338,385.93. This trade represents a 10.01% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 31,272 shares of company stock worth $1,263,318. Corporate insiders own 0.63% of the company's stock.

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.