Deutsche Bank AG Decreases Stock Holdings in BorgWarner Inc. $BWA

Key Points

• Deutsche Bank AG reduced its holdings in BorgWarner Inc. by 94.2%, selling over 1.2 million shares and ending with approximately 76,123 shares valued at about $2.18 million.
• Several institutional investors have increased their stakes in BorgWarner, with notable purchases including Bank of America Corp raising its position by 91.9%.
• BorgWarner recently announced a quarterly dividend increase from $0.11 to $0.17 per share, reflecting a positive shift in its dividend payout strategy.

Deutsche Bank AG lessened its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 94.2% during the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 76,123 shares of the auto parts company's stock after selling 1,226,201 shares during the quarter. Deutsche Bank AG's holdings in BorgWarner were worth $2,181,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Bank of America Corp DE lifted its position 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 valued at $123,311,000 after purchasing an additional 1,857,907 shares during the period. LSV Asset Management raised its position in BorgWarner by 36.7% in the first 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 period. Fuller & Thaler Asset Management Inc. raised its position in shares of BorgWarner by 8,137.5% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 1,299,057 shares of the auto parts company's stock valued at $41,297,000 after purchasing an additional 1,283,287 shares during the period. Principal Financial Group Inc. raised its position in shares of BorgWarner by 338.5% during the 1st quarter. Principal Financial Group Inc. now owns 1,085,149 shares of the auto parts company's stock valued at $31,090,000 after purchasing an additional 837,668 shares during the period. Finally, Vivaldi Capital Management LP bought a new stake in shares of BorgWarner during the 4th quarter valued at $14,052,000. Hedge funds and other institutional investors own 95.67% of the company's stock.

Insider Activity

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of the firm'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 transaction 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Stefan Demmerle sold 5,000 shares of the firm'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 transaction of $202,500.00. Following the sale, the vice president directly owned 229,040 shares in the company, valued at approximately $9,276,120. The trade was a 2.14% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 22,500 shares of company stock worth $892,175 in the last three months. Corporate insiders own 0.45% of the company's stock.

BorgWarner Stock Performance

BWA opened at $42.1890 on Thursday. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. The firm has a fifty day moving average price of $36.09 and a 200 day moving average price of $31.90. The stock has a market cap of $9.13 billion, a P/E ratio of 44.88, a P/E/G ratio of 1.27 and a beta of 1.10. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $42.44.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates 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 net margin of 1.50% and a return on equity of 16.17%. The firm's revenue for the quarter was up 1.0% on a year-over-year basis. During the same period in the prior year, the business posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities research analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner declared that its board has authorized a share repurchase plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the auto parts company to repurchase up to 13.2% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

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 paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.6%. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio (DPR) is 72.34%.

Wall Street Analyst Weigh In

BWA has been the subject of several research analyst reports. Barclays reaffirmed an "overweight" rating and set a $45.00 target price (up from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Evercore ISI lifted their price target on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. JPMorgan Chase & Co. lifted their price target on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research note on Monday, August 4th. UBS Group lifted their price objective on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a report on Monday, July 14th. Finally, Morgan Stanley lifted their price objective on shares of BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a report on Tuesday, August 12th. Ten analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $39.64.

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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