Fifth Third Bancorp Reduces Position in BorgWarner Inc. $BWA

Key Points

• Fifth Third Bancorp reduced its stake in BorgWarner Inc. by 26.2%, ending up with 32,502 shares valued at approximately $1.08 million.
• Several analysts have upgraded their ratings for BorgWarner, with target prices ranging from $38.00 to $46.00, indicating a generally positive outlook.
• BorgWarner recently increased its quarterly dividend to $0.17, representing a boost from the previous $0.11, alongside announcing a $1 billion share repurchase program.

Fifth Third Bancorp reduced its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 26.2% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 32,502 shares of the auto parts company's stock after selling 11,550 shares during the period. Fifth Third Bancorp's holdings in BorgWarner were worth $1,088,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the business. Global X Japan Co. Ltd. raised its holdings in BorgWarner by 133.4% in the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after acquiring an additional 523 shares during the last quarter. Manchester Capital Management LLC purchased a new stake in shares of BorgWarner in the first quarter valued at approximately $30,000. 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 in the last quarter. Allworth Financial LP increased its holdings in shares of BorgWarner by 123.1% in the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after purchasing an additional 793 shares during the last quarter. Finally, Brooklyn Investment Group lifted its position in BorgWarner by 97.9% during the first quarter. Brooklyn Investment Group now owns 1,480 shares of the auto parts company's stock worth $42,000 after buying an additional 732 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts have issued reports on BWA shares. Evercore ISI upped their target price on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a report on Monday, August 4th. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. UBS Group raised their price objective on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Baird R W raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. Finally, Bank of America lowered shares of BorgWarner from a "buy" rating to a "neutral" rating and boosted their target price for the company from $41.00 to $46.00 in a report on Wednesday, September 10th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $41.50.

BorgWarner Price Performance

Shares of BWA opened at $44.10 on Monday. The firm has a 50-day simple moving average of $41.07 and a two-hundred day simple moving average of $34.54. The stock has a market cap of $9.54 billion, a PE ratio of 46.92, a P/E/G ratio of 1.45 and a beta of 1.09. BorgWarner Inc. has a 1-year low of $24.40 and a 1-year high of $44.70. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66.

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 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 firm had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.56 billion. During the same quarter last year, the company posted $1.19 EPS. The firm's quarterly revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

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

BorgWarner announced that its board has authorized a share repurchase program on Thursday, July 31st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's management 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 stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the transaction, the vice president directly owned 55,945 shares in the company, valued at $2,238,359.45. This trade represents a 4.28% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Stefan Demmerle sold 15,000 shares of the firm'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 transaction of $589,650.00. Following the completion of the transaction, the vice president directly owned 234,040 shares of the company's stock, valued at approximately $9,200,112.40. The trade was a 6.02% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 31,272 shares of company stock valued at $1,263,318. Corporate insiders own 0.63% of the company's stock.

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.

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