Ethic Inc. Buys 8,475 Shares of BorgWarner Inc. $BWA

Key Points

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Ethic Inc. lifted its position in BorgWarner Inc. (NYSE:BWA - Free Report) by 12.9% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 74,184 shares of the auto parts company's stock after purchasing an additional 8,475 shares during the period. Ethic Inc.'s holdings in BorgWarner were worth $2,117,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Envestnet Asset Management Inc. grew its position in shares of BorgWarner by 40.3% in the 4th quarter. Envestnet Asset Management Inc. now owns 275,049 shares of the auto parts company's stock worth $8,744,000 after buying an additional 79,022 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in BorgWarner in the fourth quarter worth $3,860,000. Barclays PLC boosted its holdings in BorgWarner by 13.6% in the fourth quarter. Barclays PLC now owns 503,809 shares of the auto parts company's stock valued at $16,015,000 after acquiring an additional 60,333 shares in the last quarter. Mariner LLC increased its position in BorgWarner by 1.7% during the 4th quarter. Mariner LLC now owns 97,782 shares of the auto parts company's stock valued at $3,108,000 after purchasing an additional 1,638 shares during the period. Finally, XTX Topco Ltd raised its holdings in BorgWarner by 52.5% in the 4th quarter. XTX Topco Ltd now owns 11,511 shares of the auto parts company's stock worth $366,000 after purchasing an additional 3,961 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other news, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the transaction, the vice president directly owned 55,945 shares of the company's stock, valued at $2,238,359.45. This represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total transaction of $589,650.00. Following the completion of the sale, the vice president owned 234,040 shares of the company's stock, valued at $9,200,112.40. This represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 22,500 shares of company stock valued at $892,175. 0.45% of the stock is owned by company insiders.

BorgWarner Stock Up 3.0%

Shares of BWA traded up $1.2550 during mid-day trading on Friday, reaching $43.0950. The company had a trading volume of 1,344,644 shares, compared to its average volume of 2,852,269. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. The company has a market capitalization of $9.33 billion, a price-to-earnings ratio of 45.85, a price-to-earnings-growth ratio of 1.28 and a beta of 1.10. The firm has a 50-day moving average price of $36.26 and a 200 day moving average price of $31.98. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $43.12.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The business had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.56 billion. During the same quarter in the previous year, the business earned $1.19 earnings per share. The firm'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. On average, sell-side analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner declared that its Board of Directors has authorized a stock buyback program on Thursday, July 31st that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio (DPR) is 46.81%.

Wall Street Analysts Forecast Growth

BWA has been the topic of a number of research reports. JPMorgan Chase & Co. lifted their target price 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. Barclays reiterated an "overweight" rating and set a $45.00 target price (up previously from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Piper Sandler raised their target price on BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. UBS Group upped their price target on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research note on Monday, July 14th. Finally, Morgan Stanley raised their price objective on BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research report on Tuesday, August 12th. Ten equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $39.64.

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.