Dimensional Fund Advisors LP Has $331.43 Million Position in BorgWarner Inc. $BWA

Key Points

• Dimensional Fund Advisors LP increased its holdings in BorgWarner Inc. by 2.5%, acquiring an additional 284,587 shares, resulting in a total position valued at $331.43 million.
• BorgWarner's stock has recently seen positive adjustments in analyst ratings, with price targets rising; Piper Sandler set a new target of $44.00 with an "overweight" rating.
• The company has authorized a $1.00 billion stock buyback program, indicating confidence in its stock valuation, while also announcing an increase in its quarterly dividend to $0.17 per share.

Dimensional Fund Advisors LP boosted its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 2.5% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 11,568,627 shares of the auto parts company's stock after purchasing an additional 284,587 shares during the period. Dimensional Fund Advisors LP owned about 5.27% of BorgWarner worth $331,429,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Fjarde AP Fonden Fourth Swedish National Pension Fund acquired a new stake in shares of BorgWarner during the 1st quarter valued at $398,000. Leith Wheeler Investment Counsel Ltd. acquired a new stake in BorgWarner during the first quarter valued at $28,989,000. GKV Capital Management Co. Inc. purchased a new position in BorgWarner in the first quarter valued at about $153,000. Russell Investments Group Ltd. increased its position in BorgWarner by 26.2% in the 1st quarter. Russell Investments Group Ltd. now owns 358,011 shares of the auto parts company's stock worth $10,256,000 after purchasing an additional 74,294 shares during the last quarter. Finally, Trajan Wealth LLC raised its stake in shares of BorgWarner by 4.6% during the 1st quarter. Trajan Wealth LLC now owns 7,978 shares of the auto parts company's stock worth $229,000 after purchasing an additional 353 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on BWA shares. Morgan Stanley increased their price objective on BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a report on Tuesday, August 12th. Evercore ISI increased 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. Barclays reaffirmed an "overweight" rating and issued a $45.00 price objective (up previously from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Wells Fargo & Company increased their target price on shares of BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Finally, Robert W. Baird boosted their price target on BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Ten investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $39.64.

BorgWarner Stock Performance

NYSE:BWA traded down $0.3630 during mid-day trading on Thursday, hitting $41.8570. 1,274,403 shares of the company's stock traded hands, compared to its average volume of 2,854,294. The firm has a market capitalization of $9.06 billion, a price-to-earnings ratio of 44.53, a price-to-earnings-growth ratio of 1.27 and a beta of 1.10. The firm has a 50 day moving average of $36.09 and a two-hundred day moving average of $31.90. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a 12 month low of $24.40 and a 12 month high of $42.44.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS 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 analyst estimates of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The company's quarterly revenue was up 1.0% compared to the same quarter last year. During the same period in the previous year, the company earned $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities analysts forecast that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio is currently 72.34%.

BorgWarner declared that its board has approved a share repurchase 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 often a sign that the company's board believes its shares are undervalued.

Insider Activity

In other 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 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction 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 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 ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 22,500 shares of company stock valued at $892,175. 0.45% of the stock is owned by corporate insiders.

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.