EntryPoint Capital LLC Makes New Investment in BorgWarner Inc. $BWA

Key Points

• EntryPoint Capital LLC has made a new investment in BorgWarner Inc., acquiring 29,596 shares worth approximately $848,000, making it the firm's 9th largest holding.
• Several institutional investors significantly increased their stakes in BorgWarner, with ownership among institutions and hedge funds now at 95.67%.
• BorgWarner recently announced a quarterly dividend increase from $0.11 to $0.17 per share, along with a $1 billion stock repurchase program aiming to buy back up to 13.2% of its shares.

EntryPoint Capital LLC purchased a new position in BorgWarner Inc. (NYSE:BWA - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 29,596 shares of the auto parts company's stock, valued at approximately $848,000. BorgWarner makes up about 0.4% of EntryPoint Capital LLC's portfolio, making the stock its 9th largest holding.

Other institutional investors have also modified their holdings of the company. Global X Japan Co. Ltd. grew its stake in shares of BorgWarner by 133.4% in the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock worth $26,000 after acquiring an additional 523 shares in the last quarter. Manchester Capital Management LLC acquired a new position in shares of BorgWarner during the first quarter worth $30,000. LRI Investments LLC grew its stake in shares of BorgWarner by 1,515.0% during the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock worth $31,000 after purchasing an additional 909 shares in the last quarter. Meeder Asset Management Inc. grew its stake in shares of BorgWarner by 63.5% during the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock worth $40,000 after purchasing an additional 539 shares in the last quarter. Finally, Allworth Financial LP grew 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 worth $41,000 after purchasing an additional 793 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. Evercore ISI boosted their target price 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. Guggenheim lowered their target price on shares of BorgWarner from $38.00 to $33.00 and set a "buy" rating for the company in a research note on Tuesday, April 22nd. UBS Group boosted their target price on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research note on Monday, July 14th. Wells Fargo & Company boosted their target price on shares of BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Finally, Morgan Stanley boosted their target price on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 12th. Ten 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 stock has an average rating of "Moderate Buy" and an average price target of $39.64.

Insider Activity

In other news, VP Stefan Demmerle sold 5,000 shares of the stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total transaction of $202,500.00. Following the completion of the sale, the vice president owned 229,040 shares in the company, valued at approximately $9,276,120. This represents a 2.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction dated Tuesday, August 12th. The stock was 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 $2,238,359.45. This trade represents a 4.28% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 22,500 shares of company stock valued at $892,175 in the last quarter. Insiders own 0.63% of the company's stock.

BorgWarner Price Performance

Shares of BWA opened at $42.0090 on Wednesday. BorgWarner Inc. has a 1-year low of $24.40 and a 1-year high of $42.45. The stock has a market cap of $9.09 billion, a PE ratio of 44.69, a price-to-earnings-growth ratio of 1.26 and a beta of 1.10. 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 $35.92 and a 200 day moving average price of $31.83.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.06 by $0.15. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The business had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter in the prior year, the firm earned $1.19 earnings per share. The business's quarterly revenue was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, sell-side analysts anticipate that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be paid a dividend of $0.17 per share. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. BorgWarner's dividend payout ratio is 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 purchase up to 13.2% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its stock is undervalued.

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.

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