Ethic Inc. Sells 8,093 Shares of BorgWarner Inc. $BWA

Key Points

• Ethic Inc. has reduced its stake in BorgWarner Inc. by 10.9%, selling 8,093 shares, leaving them with 66,091 shares valued at $2.22 million.
• BorgWarner's recent quarterly earnings showed a profit of $1.21 per share, exceeding analyst expectations, and the company reported revenue of $3.64 billion.
• The auto parts company recently increased its quarterly dividend from $0.11 to $0.17 per share, indicating confidence in its financial stability, alongside a new stock repurchase program worth $1 billion.

Ethic Inc. cut its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 10.9% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 66,091 shares of the auto parts company's stock after selling 8,093 shares during the quarter. Ethic Inc.'s holdings in BorgWarner were worth $2,221,000 at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of BWA. Oppenheimer Asset Management Inc. raised its holdings in BorgWarner by 6.9% during the first quarter. Oppenheimer Asset Management Inc. now owns 35,694 shares of the auto parts company's stock worth $1,023,000 after buying an additional 2,311 shares during the last quarter. Moran Wealth Management LLC raised its holdings in BorgWarner by 3.1% during the first quarter. Moran Wealth Management LLC now owns 18,415 shares of the auto parts company's stock worth $528,000 after buying an additional 546 shares during the last quarter. Golden State Wealth Management LLC raised its holdings in BorgWarner by 596.1% during the first quarter. Golden State Wealth Management LLC now owns 1,601 shares of the auto parts company's stock worth $46,000 after buying an additional 1,371 shares during the last quarter. Robeco Institutional Asset Management B.V. raised its holdings in BorgWarner by 19.6% during the first quarter. Robeco Institutional Asset Management B.V. now owns 988,324 shares of the auto parts company's stock worth $28,315,000 after buying an additional 162,176 shares during the last quarter. Finally, Old North State Wealth Management LLC raised its holdings in BorgWarner by 5.4% during the first quarter. Old North State Wealth Management LLC now owns 87,132 shares of the auto parts company's stock worth $2,498,000 after buying an additional 4,490 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

Analysts Set New Price Targets

BWA has been the topic of several research reports. Barclays upped their price objective on shares of BorgWarner from $45.00 to $55.00 and gave the stock an "overweight" rating in a report on Friday, October 10th. Piper Sandler increased their target price on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a report on Friday, August 1st. UBS Group increased their target price on shares of BorgWarner from $43.00 to $46.00 and gave the company a "neutral" rating in a report on Monday, October 6th. Zacks Research downgraded shares of BorgWarner from a "strong-buy" rating to a "hold" rating in a report on Monday, October 13th. Finally, Evercore ISI increased their target price on shares of BorgWarner from $42.00 to $50.00 and gave the company an "outperform" rating in a report on Monday, October 13th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $45.21.

BorgWarner Stock Performance

NYSE BWA opened at $43.97 on Friday. BorgWarner Inc. has a 52-week low of $24.40 and a 52-week high of $44.97. The company has a 50-day simple moving average of $43.26 and a 200 day simple moving average of $36.51. 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 $9.51 billion, a PE ratio of 46.78, a price-to-earnings-growth ratio of 1.61 and a beta of 1.09.

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 (EPS) for the quarter, topping analysts' consensus estimates 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 last year, the company posted $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, research analysts predict that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.5%. This is a boost from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date was Tuesday, September 2nd. BorgWarner's dividend payout ratio is 72.34%.

BorgWarner declared that its board has authorized a stock repurchase program on Thursday, July 31st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president owned 55,945 shares in the company, 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 filing with the SEC, which is accessible through this link. Also, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total transaction of $371,143.32. Following the completion of the transaction, the director owned 78,903 shares of the company's stock, valued at $3,338,385.93. The trade was a 10.01% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 31,272 shares of company stock worth $1,263,318. Insiders own 0.45% of the company's stock.

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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