Gallo Partners LP Acquires Shares of 23,145 BorgWarner Inc. $BWA

Key Points

• Gallo Partners LP acquired 23,145 BorgWarner shares worth approximately $1.54 million, making the auto-parts company about 3.4% of its portfolio. Institutional investors collectively own 95.67% of BWA.
• Analysts maintain a favorable outlook, with a consensus rating of “Moderate Buy” and an average price target of $75.93. BorgWarner recently exceeded quarterly earnings and revenue expectations.
• BorgWarner announced a $1 billion share-repurchase program, alongside a quarterly dividend of $0.17 per share. Recent insider activity was mixed, with a director buying shares while the chief accounting officer sold part of her holdings.

Gallo Partners LP acquired a new stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 23,145 shares of the auto parts company's stock, valued at approximately $1,537,000. BorgWarner accounts for about 3.4% of Gallo Partners LP's investment portfolio, making the stock its 11th largest position.

Other institutional investors have also made changes to their positions in the company. Clearstead Trust LLC acquired a new stake in BorgWarner during the 2nd quarter valued at $28,000. Prosperity Bancshares Inc acquired a new position in BorgWarner in the 4th quarter worth $37,000. Ceredex Value Advisors LLC purchased a new position in BorgWarner in the 2nd quarter valued at about $40,000. Torren Management LLC purchased a new position in BorgWarner in the 4th quarter valued at about $48,000. Finally, Cedar Mountain Advisors LLC acquired a new stake in shares of BorgWarner during the first quarter valued at about $55,000. 95.67% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

BWA has been the topic of several recent analyst reports. TD Cowen boosted their price target on BorgWarner from $67.00 to $68.00 and gave the stock a "hold" rating in a research note on Thursday, August 6th. Robert W. Baird set a $79.00 price objective on BorgWarner in a research note on Thursday, August 6th. The Goldman Sachs Group restated a "buy" rating and set a $84.00 price objective on shares of BorgWarner in a report on Thursday, June 11th. Deutsche Bank Aktiengesellschaft set a $80.00 target price on BorgWarner in a research report on Thursday, August 6th. Finally, Weiss Ratings upgraded BorgWarner from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, June 29th. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $75.93.

Insider Buying and Selling

In other BorgWarner news, CAO Amy B. Kulikowski sold 2,900 shares of BorgWarner stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total value of $198,940.00. Following the completion of the transaction, the chief accounting officer owned 9,725 shares of the company's stock, valued at $667,135. The trade was a 22.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Rajesh Kalathur bought 7,407 shares of the company's stock in a transaction on Wednesday, August 19th. The shares were acquired at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the acquisition, the director directly owned 7,407 shares of the company's stock, valued at $500,639.13. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. 0.76% of the stock is currently owned by insiders.

BorgWarner Stock Performance

Shares of BorgWarner stock opened at $67.74 on Monday. The firm has a market cap of $13.80 billion, a PE ratio of 33.87, a price-to-earnings-growth ratio of 1.22 and a beta of 1.10. The firm's 50-day simple moving average is $66.34 and its 200-day simple moving average is $61.66. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. BorgWarner Inc. has a 1 year low of $40.50 and a 1 year high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, topping analysts' consensus estimates of $1.28 by $0.14. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.The business had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.58 billion. During the same period last year, the firm earned $1.21 earnings per share. The company's revenue for the quarter was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Equities analysts forecast that BorgWarner Inc. will post 5.19 earnings per share for the current fiscal year.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a $0.17 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. BorgWarner's dividend payout ratio (DPR) is presently 34.00%.

BorgWarner announced that its Board of Directors has authorized a share repurchase plan on Wednesday, August 5th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to buy up to 7.7% of its shares through open market purchases. Shares buyback plans are often an indication that the company's leadership believes its shares are undervalued.

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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