Fifth Third Wealth Advisors LLC Takes $220,000 Position in BorgWarner Inc. $BWA

Key Points

• Fifth Third Wealth Advisors LLC invested approximately $220,000 in BorgWarner Inc. by purchasing 6,560 shares in the second quarter.
• BorgWarner's recent dividend increase raised quarterly payments to $0.17 per share, up from $0.11, reflecting a dividend yield of 1.6%.
• Multiple analysts have upgraded BorgWarner's stock ratings, with Goldman Sachs setting a new price target of $52.00, indicating strong market confidence.

Fifth Third Wealth Advisors LLC purchased a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 6,560 shares of the auto parts company's stock, valued at approximately $220,000.

A number of other large investors also recently modified their holdings of BWA. Global X Japan Co. Ltd. lifted its stake in shares of 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 bought a new position in shares of BorgWarner in the 1st quarter valued at $30,000. Trust Co. of Vermont lifted its stake in shares of BorgWarner by 55,000.0% in the 2nd quarter. Trust Co. of Vermont now owns 1,102 shares of the auto parts company's stock valued at $37,000 after acquiring an additional 1,100 shares during the last quarter. Meeder Asset Management Inc. lifted its stake in shares of BorgWarner by 63.5% in the 1st quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after acquiring an additional 539 shares during the last quarter. Finally, Allworth Financial LP raised its position in BorgWarner by 123.1% during the 1st 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 during the last quarter. 95.67% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

BWA has been the subject of several analyst reports. The Goldman Sachs Group raised their target price on BorgWarner from $45.00 to $52.00 and gave the stock a "buy" rating in a research report on Monday, September 29th. Piper Sandler raised their target price on BorgWarner from $37.00 to $44.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Bank of America lowered BorgWarner from a "buy" rating to a "neutral" rating and raised their target price for the stock from $41.00 to $46.00 in a research report on Wednesday, September 10th. Finally, Robert W. Baird raised BorgWarner from a "neutral" rating to an "outperform" rating and raised their target price for the stock from $41.00 to $52.00 in a research report on Wednesday, September 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $44.64.

BorgWarner Stock Performance

BWA stock opened at $41.75 on Wednesday. The stock has a 50-day moving average price of $42.70 and a 200-day moving average price of $35.68. BorgWarner Inc. has a 1-year low of $24.40 and a 1-year high of $44.97. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The firm has a market cap of $9.03 billion, a PE ratio of 44.41, a price-to-earnings-growth ratio of 1.35 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 for the quarter, topping the consensus estimate of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. During the same period last year, the company posted $1.19 EPS. The business'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, equities research analysts expect that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were paid a $0.17 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. This is a boost from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio (DPR) is 72.34%.

BorgWarner announced that its Board of Directors has approved a stock buyback plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to repurchase up to 13.2% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Activity

In other 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 value of $100,025.00. Following the completion of the sale, 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 filing with the SEC, which is available at this link. Also, VP Stefan Demmerle sold 5,000 shares of the firm's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total value of $202,500.00. Following the completion of the sale, the vice president owned 229,040 shares of the company's stock, valued at approximately $9,276,120. This represents a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 31,272 shares of company stock worth $1,263,318 in the last three months. Company insiders own 0.63% of the company's stock.

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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