Gabelli Funds LLC Reduces Position in BorgWarner Inc. $BWA

Key Points

• Gabelli Funds LLC has reduced its stock holdings in BorgWarner Inc. by 3.2%, owning 289,000 shares worth approximately $8.28 million after selling 9,600 shares in the first quarter.
• BorgWarner's analysts have recently set new price targets, with estimates rising to a consensus target of $39.64, reflecting a strong interest as ten investment analysts rated the stock as a Buy.
• The company has declared an increase in its quarterly dividend to $0.17, up from $0.11, which translates to an annual yield of 1.6%, indicating positive growth and shareholder returns.

Gabelli Funds LLC reduced its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 3.2% during the first quarter, according to its most recent filing with the SEC. The fund owned 289,000 shares of the auto parts company's stock after selling 9,600 shares during the quarter. Gabelli Funds LLC owned 0.13% of BorgWarner worth $8,280,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. New York State Teachers Retirement System boosted its holdings in shares of BorgWarner by 3.8% in the 1st quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock worth $6,280,000 after buying an additional 7,977 shares during the last quarter. Avantax Advisory Services Inc. increased its stake in shares of BorgWarner by 13.3% during the 1st quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock worth $380,000 after purchasing an additional 1,555 shares during the last quarter. Sage Rhino Capital LLC purchased a new stake in shares of BorgWarner during the 1st quarter worth approximately $235,000. Brown Advisory Inc. purchased a new stake in shares of BorgWarner during the 1st quarter worth approximately $522,000. Finally, Alpha Omega Wealth Management LLC increased its stake in shares of BorgWarner by 59.8% during the 1st quarter. Alpha Omega Wealth Management LLC now owns 25,190 shares of the auto parts company's stock worth $722,000 after purchasing an additional 9,427 shares during the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on BWA shares. Evercore ISI raised their price target on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. Wells Fargo & Company boosted their price objective on BorgWarner from $45.00 to $46.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. JPMorgan Chase & Co. boosted their price objective on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Finally, Piper Sandler boosted their price objective on BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Ten analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, BorgWarner presently has an average rating of "Moderate Buy" and a consensus price target of $39.64.

Insider Activity at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction that occurred 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 completion of the sale, 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Stefan Demmerle sold 5,000 shares of the company's stock in a transaction that occurred 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 directly owned 229,040 shares of the company's stock, valued at approximately $9,276,120. This represents a 2.14% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 22,500 shares of company stock valued at $892,175. 0.63% of the stock is owned by insiders.

BorgWarner Price Performance

Shares of NYSE BWA traded down $0.17 during midday trading on Monday, hitting $42.75. 2,250,343 shares of the company's stock were exchanged, compared to its average volume of 2,330,855. BorgWarner Inc. has a 12-month low of $24.40 and a 12-month high of $43.83. 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 company has a market cap of $9.25 billion, a price-to-earnings ratio of 45.47, a PEG ratio of 1.29 and a beta of 1.09. The business's fifty day moving average price is $37.47 and its two-hundred day moving average price is $32.56.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping 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 revenue was up 1.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, research analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The company 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. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Tuesday, September 2nd. BorgWarner's payout ratio is currently 46.81%.

BorgWarner announced that its board has authorized a share repurchase plan on Thursday, July 31st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's board believes its stock is undervalued.

BorgWarner 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.