Flputnam Investment Management Co. Sells 14,968 Shares of BorgWarner Inc. $BWA

Key Points

• Flputnam Investment Management Co. has reduced its stake in BorgWarner Inc. by 22.9%, selling 14,968 shares during the first quarter, now holding 50,483 shares valued at approximately $1,446,000.
• BorgWarner recently announced a quarterly dividend increase to $0.17 per share, marking a new annualized dividend of $0.68 with a dividend yield of 1.6%.
• The company also revealed a share buyback program authorizing the repurchase of up to $1.00 billion in outstanding shares, signaling the board's belief that the shares are undervalued.

Flputnam Investment Management Co. decreased its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 22.9% in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 50,483 shares of the auto parts company's stock after selling 14,968 shares during the quarter. Flputnam Investment Management Co.'s holdings in BorgWarner were worth $1,446,000 as of its most recent filing with the SEC.

Other hedge funds also recently made changes to their positions in the company. Global X Japan Co. Ltd. grew its holdings 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 worth $26,000 after purchasing an additional 523 shares during the last quarter. Manchester Capital Management LLC bought a new stake in shares of BorgWarner in the 1st quarter worth about $30,000. LRI Investments LLC grew its holdings in shares of BorgWarner by 1,515.0% in the 4th quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock worth $31,000 after purchasing an additional 909 shares during the last quarter. Meeder Asset Management Inc. grew its holdings 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 worth $40,000 after purchasing an additional 539 shares during the last quarter. Finally, Allworth Financial LP grew its holdings in shares of BorgWarner by 123.1% in 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. Institutional investors and hedge funds own 95.67% of the company's stock.

BorgWarner Trading Up 0.3%

Shares of NYSE BWA traded up $0.15 during mid-day trading on Friday, hitting $44.00. The company's stock had a trading volume of 2,033,625 shares, compared to its average volume of 2,249,205. The stock has a market cap of $9.52 billion, a price-to-earnings ratio of 46.81, a price-to-earnings-growth ratio of 1.33 and a beta of 1.09. 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 Inc. has a one year low of $24.40 and a one year high of $44.32. The company's fifty day simple moving average is $38.46 and its 200-day simple moving average is $32.98.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.15. The company had revenue of $3.64 billion for 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 company's revenue for the quarter was up 1.0% on a year-over-year basis. During the same quarter last year, the firm earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, sell-side analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner announced that its Board of Directors has initiated a stock buyback program on Thursday, July 31st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to buy up to 13.2% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its shares are undervalued.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be paid a $0.17 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a yield of 1.5%. BorgWarner's payout ratio is presently 72.34%.

Insider Transactions at BorgWarner

In other news, VP Stefan Demmerle sold 5,000 shares of the firm's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total transaction of $202,500.00. Following the sale, the vice president owned 229,040 shares of the company's stock, valued at $9,276,120. This trade represents a 2.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Isabelle Mckenzie sold 2,500 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the transaction, the vice president 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 disclosure for this sale can be found here. Insiders have sold a total of 31,272 shares of company stock valued at $1,263,318 over the last 90 days. 0.45% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. JPMorgan Chase & Co. increased their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a report on Monday, August 4th. Evercore ISI increased their price objective on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a report on Monday, August 4th. Barclays reissued an "overweight" rating and set a $45.00 price objective (up previously from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Finally, Baird R W raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given 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 $40.57.

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.