Edmp Inc. Decreases Stock Holdings in BorgWarner Inc. $BWA

Key Points

• Edmp Inc. reduced its holdings in BorgWarner Inc. by 14.4% during the second quarter, leaving them with 47,832 shares valued at approximately $1.6 million.
• In recent insider transactions, Director Alexis P. Michas sold 8,772 shares, while VP Stefan Demmerle sold 15,000 shares, contributing to a total of 31,272 shares sold by insiders over the past 90 days.
• BorgWarner announced a $1 billion stock buyback plan and increased its quarterly dividend from $0.11 to $0.17, indicating confidence in the company's valuation and financial health.

Edmp Inc. trimmed its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 14.4% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 47,832 shares of the auto parts company's stock after selling 8,043 shares during the period. Edmp Inc.'s holdings in BorgWarner were worth $1,601,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also modified their holdings of the company. Global X Japan Co. Ltd. grew its holdings in BorgWarner by 133.4% in the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares during the last quarter. Manchester Capital Management LLC acquired a new stake in shares of BorgWarner in the first quarter valued at approximately $30,000. Trust Co. of Vermont grew its position in shares of BorgWarner by 55,000.0% in the second quarter. Trust Co. of Vermont now owns 1,102 shares of the auto parts company's stock valued at $37,000 after purchasing an additional 1,100 shares during the last quarter. Meeder Asset Management Inc. grew its position in shares of BorgWarner by 63.5% in the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after purchasing an additional 539 shares during the last quarter. Finally, Allworth Financial LP lifted its stake in shares of BorgWarner by 123.1% during the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after buying an additional 793 shares during the period. Institutional investors and hedge funds own 95.67% of the company's stock.

Insider Transactions at BorgWarner

In other BorgWarner news, Director Alexis P. Michas sold 8,772 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total transaction of $371,143.32. Following the sale, the director owned 78,903 shares in the company, valued at $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Stefan Demmerle sold 15,000 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total value of $589,650.00. Following the sale, the vice president owned 234,040 shares in the company, valued at $9,200,112.40. The trade was a 6.02% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 31,272 shares of company stock valued at $1,263,318. Insiders own 0.63% of the company's stock.

BorgWarner Price Performance

BorgWarner stock opened at $41.20 on Tuesday. The firm has a fifty day moving average of $42.62 and a 200-day moving average of $35.64. The firm has a market capitalization of $8.91 billion, a P/E ratio of 43.82, a PEG ratio of 1.36 and a beta of 1.09. BorgWarner Inc. has a 52-week low of $24.40 and a 52-week high of $44.97. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. The business had revenue of $3.64 billion during 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 last year, the business earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, analysts predict that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner declared that its board has approved a stock buyback plan on Thursday, July 31st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its stock is undervalued.

BorgWarner Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were given a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Tuesday, September 2nd. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is presently 72.34%.

Wall Street Analyst Weigh In

BWA has been the topic of several recent analyst reports. Piper Sandler upped their price objective on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Weiss Ratings reissued a "hold (c)" rating on shares of BorgWarner in a research note on Wednesday, October 8th. JPMorgan Chase & Co. upped their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Evercore ISI upped their price objective on shares of BorgWarner from $42.00 to $50.00 and gave the company an "outperform" rating in a research note on Monday. Finally, Bank of America downgraded shares of BorgWarner from a "buy" rating to a "neutral" rating and upped their price objective for the company from $41.00 to $46.00 in a research note on Wednesday, September 10th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $44.64.

About BorgWarner

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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