Fjarde AP Fonden Fourth Swedish National Pension Fund Takes $398,000 Position in BorgWarner Inc. $BWA

Key Points

• The Fjarde AP Fonden Fourth Swedish National Pension Fund recently made a new investment in BorgWarner Inc., purchasing 13,900 shares valued at approximately $398,000.
• BorgWarner declared a quarterly dividend of $0.17 per share, up from the previous $0.11, with a yield of 1.6% and a dividend payout ratio of 46.81%.
• Analysts have mixed ratings on BorgWarner's stock, with an average target price of $39.64 and various recent changes to price targets among major brokerages.

Fjarde AP Fonden Fourth Swedish National Pension Fund bought a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 13,900 shares of the auto parts company's stock, valued at approximately $398,000.

Other institutional investors also recently modified their holdings of the company. New York State Teachers Retirement System raised its stake in shares of BorgWarner by 3.8% in the first quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock valued at $6,280,000 after acquiring an additional 7,977 shares during the last quarter. Avantax Advisory Services Inc. increased its holdings in shares of BorgWarner by 13.3% in the first quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock valued at $380,000 after purchasing an additional 1,555 shares in the last quarter. Sage Rhino Capital LLC acquired a new stake in shares of BorgWarner in the first quarter valued at approximately $235,000. Brown Advisory Inc. acquired a new stake in shares of BorgWarner in the first quarter valued at approximately $522,000. Finally, Alpha Omega Wealth Management LLC increased its holdings in shares of BorgWarner by 59.8% in the first quarter. Alpha Omega Wealth Management LLC now owns 25,190 shares of the auto parts company's stock valued at $722,000 after purchasing an additional 9,427 shares in the last quarter. Institutional investors own 95.67% of the company's stock.

Insiders Place Their Bets

In other news, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction on Tuesday, August 12th. The shares were 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 trade 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 this hyperlink. Also, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction 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 transaction, the vice president directly owned 234,040 shares in the company, valued at approximately $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 three months, insiders have sold 22,500 shares of company stock worth $892,175. Insiders own 0.45% of the company's stock.

BorgWarner Trading Up 3.0%

BWA traded up $1.2550 during trading on Friday, reaching $43.0950. 1,960,893 shares of the company's stock were exchanged, compared to its average volume of 2,414,477. The company's fifty day moving average price is $36.46 and its 200-day moving average price is $32.06. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. BorgWarner Inc. has a fifty-two week low of $24.40 and a fifty-two week high of $43.16. The firm has a market capitalization of $9.33 billion, a PE ratio of 45.85, a P/E/G ratio of 1.30 and a beta of 1.10.

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

BorgWarner declared that its Board of Directors has authorized a share repurchase program on Thursday, July 31st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis 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 currently 72.34%.

Analyst Ratings Changes

A number of brokerages recently weighed in on BWA. Morgan Stanley raised their price target on shares of BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a report on Tuesday, August 12th. JPMorgan Chase & Co. raised their price target on shares of BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a report on Monday, August 4th. Robert W. Baird raised their price target on shares of BorgWarner from $32.00 to $39.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Bank of America raised their price target on shares of BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a report on Monday, June 16th. Finally, Wells Fargo & Company raised their price target on shares of BorgWarner from $45.00 to $46.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Ten research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, BorgWarner presently has a consensus 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.