Corient Private Wealth LP Makes New Investment in BorgWarner Inc. $BWA

Key Points

• Corient Private Wealth initiated a BorgWarner position by purchasing 21,411 shares worth approximately $1.42 million. Institutional investors collectively own 95.67% of the company.
• BorgWarner exceeded quarterly expectations, reporting $1.42 in earnings per share versus the $1.28 consensus estimate and $3.65 billion in revenue. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $76.67.
• The company authorized a $1 billion share-repurchase program, allowing it to buy back up to 7.7% of outstanding shares, and declared a quarterly dividend of $0.17 per share, representing a 1.0% yield.

Corient Private Wealth LP bought a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 21,411 shares of the auto parts company's stock, valued at approximately $1,422,000.

Other hedge funds have also recently modified their holdings of the company. BlackRock Inc. purchased a new stake in BorgWarner in the second quarter valued at $1,678,187,000. AQR Capital Management LLC grew its holdings in shares of BorgWarner by 119.7% during the third quarter. AQR Capital Management LLC now owns 7,518,776 shares of the auto parts company's stock worth $330,525,000 after purchasing an additional 4,095,902 shares during the last quarter. William Blair Investment Management LLC acquired a new stake in shares of BorgWarner during the second quarter worth about $251,305,000. Bank of America Corp DE acquired a new stake in shares of BorgWarner during the second quarter worth about $250,618,000. Finally, Norges Bank purchased a new stake in shares of BorgWarner in the 4th quarter valued at about $156,794,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

BorgWarner Stock Performance

NYSE BWA opened at $65.75 on Friday. The firm has a market cap of $13.39 billion, a P/E ratio of 32.88, a P/E/G ratio of 1.17 and a beta of 1.12. BorgWarner Inc. has a 52-week low of $40.50 and a 52-week high of $78.82. The business's 50-day moving average price is $65.16 and its 200 day moving average price is $62.20. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, beating the consensus estimate of $1.28 by $0.14. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.The firm had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.58 billion. During the same period in the prior year, the business earned $1.21 EPS. The firm's revenue was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, equities research analysts expect that BorgWarner Inc. will post 5.2 earnings per share for the current year.

BorgWarner announced that its Board of Directors has authorized a share buyback plan on Wednesday, August 5th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the auto parts company to reacquire up to 7.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's management believes its shares are undervalued.

BorgWarner Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be issued a dividend of $0.17 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. BorgWarner's dividend payout ratio (DPR) is currently 34.00%.

Insider Buying and Selling

In other news, Director Rajesh Kalathur acquired 7,407 shares of the company's stock in a transaction on Wednesday, August 19th. The shares were bought at an average cost of $67.59 per share, with a total value of $500,639.13. Following the purchase, the director owned 7,407 shares of the company's stock, valued at $500,639.13. This represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Amy Kulikowski sold 2,900 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total transaction of $198,940.00. Following the transaction, the chief accounting officer owned 9,725 shares of the company's stock, valued at approximately $667,135. The trade was a 22.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.76% of the company's stock.

Analyst Upgrades and Downgrades

BWA has been the subject of a number of research analyst reports. Morgan Stanley upped their target price on BorgWarner from $67.00 to $71.00 and gave the company an "equal weight" rating in a research report on Thursday, August 6th. Sanford C. Bernstein upgraded BorgWarner to a "buy" rating in a research note on Wednesday, June 10th. Wall Street Zen raised BorgWarner from a "hold" rating to a "buy" rating in a report on Saturday, June 27th. Royal Bank Of Canada initiated coverage on shares of BorgWarner in a research report on Monday. They set an "outperform" rating and a $87.00 target price on the stock. Finally, Wells Fargo & Company upped their price target on shares of BorgWarner from $68.00 to $83.00 and gave the company an "overweight" rating in a research report on Tuesday, June 2nd. Nine research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $76.67.

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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