Fuller & Thaler Asset Management Inc. Acquires 170,745 Shares of BorgWarner Inc. $BWA

Key Points

• Fuller & Thaler Asset Management Inc. increased its stake in BorgWarner Inc. by 13.1%, now owning approximately $42.11 million worth of shares, which represents 0.67% of the company.
• BorgWarner recently announced a $1 billion share buyback program, suggesting that the board believes its stock is undervalued.
• The company has declared a quarterly dividend increase from $0.11 to $0.17, reflecting a commitment to returning value to shareholders.

Fuller & Thaler Asset Management Inc. lifted its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 13.1% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,469,802 shares of the auto parts company's stock after purchasing an additional 170,745 shares during the period. Fuller & Thaler Asset Management Inc. owned 0.67% of BorgWarner worth $42,110,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors also recently made changes to their positions in the company. Global X Japan Co. Ltd. increased its stake in shares of BorgWarner by 133.4% during the first 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 period. Manchester Capital Management LLC bought a new position in shares of BorgWarner during the first quarter worth approximately $30,000. LRI Investments LLC increased its stake in shares of BorgWarner by 1,515.0% during the fourth 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 period. Meeder Asset Management Inc. increased its stake in shares of BorgWarner by 63.5% during the first 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 period. Finally, Allworth Financial LP increased its stake in shares of BorgWarner by 123.1% during the first 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 period. Institutional investors own 95.67% of the company's stock.

Insiders Place Their Bets

In related news, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value of $100,025.00. Following 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 sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Stefan Demmerle sold 5,000 shares of the stock in a transaction on Wednesday, August 13th. The stock was 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 in the company, valued at $9,276,120. This trade represents a 2.14% decrease in their position. The disclosure for this sale can be found here. Insiders sold 22,500 shares of company stock worth $892,175 in the last quarter. 0.45% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. Barclays restated an "overweight" rating and set a $45.00 price objective (up previously from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Wells Fargo & Company lifted their price target on BorgWarner from $45.00 to $46.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Bank of America raised their price objective on BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a report on Monday, June 16th. Morgan Stanley raised their price objective on BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a report on Tuesday, August 12th. Finally, Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Ten investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $39.64.

BorgWarner Stock Up 3.0%

BWA traded up $1.2550 during midday trading on Friday, reaching $43.0950. 1,960,893 shares of the company were exchanged, compared to its average volume of 2,414,477. The company has a market cap of $9.33 billion, a price-to-earnings ratio of 45.85, a price-to-earnings-growth ratio of 1.30 and a beta of 1.10. 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's fifty day moving average price is $36.46 and its 200 day moving average price is $32.06. BorgWarner Inc. has a one year low of $24.40 and a one year high of $43.16.

BorgWarner (NYSE:BWA - Get Free Report) last released 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 during the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.BorgWarner's quarterly revenue was up 1.0% on a year-over-year basis. During the same period in the prior year, the company posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, analysts expect that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner declared that its Board of Directors has initiated a share buyback plan 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 repurchase up to 13.2% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its shares are undervalued.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be issued a $0.17 dividend. 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 dividend yield of 1.6%. BorgWarner's dividend payout ratio (DPR) is presently 72.34%.

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.