Geode Capital Management LLC Raises Stock Position in BorgWarner Inc. $BWA

Key Points

• Geode Capital Management increased its BorgWarner stake by 10.9% in the fourth quarter, ending with 4.3 million shares valued at about $193.7 million.
• Wall Street sentiment remains mixed but constructive: analysts currently view BorgWarner as a “Moderate Buy” with a consensus price target of $71.14, and several firms recently raised their targets.
• BorgWarner reported quarterly earnings of $1.24 per share, beating estimates, and announced a $0.17 quarterly dividend; meanwhile, insiders including the CEO and a vice president sold shares in recent weeks.

Geode Capital Management LLC increased its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 10.9% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 4,297,717 shares of the auto parts company's stock after purchasing an additional 423,933 shares during the quarter. Geode Capital Management LLC owned 2.01% of BorgWarner worth $193,695,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. MMCAP International Inc. SPC boosted its holdings in BorgWarner by 8.1% in the fourth quarter. MMCAP International Inc. SPC now owns 85,138 shares of the auto parts company's stock worth $3,836,000 after purchasing an additional 6,362 shares during the last quarter. AlphaQuest LLC boosted its holdings in BorgWarner by 400.1% in the fourth quarter. AlphaQuest LLC now owns 52,067 shares of the auto parts company's stock worth $2,346,000 after purchasing an additional 41,655 shares during the last quarter. Clearstead Advisors LLC boosted its holdings in BorgWarner by 108.2% in the fourth quarter. Clearstead Advisors LLC now owns 6,819 shares of the auto parts company's stock worth $307,000 after purchasing an additional 3,543 shares during the last quarter. Genus Capital Management Inc. purchased a new stake in BorgWarner in the fourth quarter worth approximately $4,060,000. Finally, Hantz Financial Services Inc. boosted its holdings in BorgWarner by 78.0% in the fourth quarter. Hantz Financial Services Inc. now owns 2,616 shares of the auto parts company's stock worth $118,000 after purchasing an additional 1,146 shares during the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. JPMorgan Chase & Co. raised their target price on shares of BorgWarner from $73.00 to $75.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. Morgan Stanley raised their target price on shares of BorgWarner from $60.00 to $67.00 and gave the stock an "equal weight" rating in a report on Wednesday, May 27th. Wall Street Zen cut shares of BorgWarner from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 9th. UBS Group increased their price target on shares of BorgWarner from $56.00 to $61.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of BorgWarner in a research report on Monday, April 20th. Seven research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $71.14.

Insider Activity

In other news, VP Isabelle Mckenzie sold 3,500 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $63.35, for a total transaction of $221,725.00. Following the sale, the vice president directly owned 57,828 shares in the company, valued at $3,663,403.80. This trade represents a 5.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Joseph F. Fadool sold 29,000 shares of the firm's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total transaction of $1,951,990.00. Following the sale, the chief executive officer owned 405,964 shares in the company, valued at $27,325,436.84. The trade was a 6.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 96,033 shares of company stock worth $5,792,558. 0.76% of the stock is currently owned by insiders.

BorgWarner Stock Up 3.4%

BWA opened at $76.58 on Thursday. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69. BorgWarner Inc. has a 1-year low of $31.83 and a 1-year high of $78.82. The company has a market capitalization of $15.71 billion, a PE ratio of 45.31, a PEG ratio of 1.42 and a beta of 1.07. The firm's 50 day simple moving average is $59.42 and its two-hundred day simple moving average is $52.89.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share for the quarter, topping the consensus estimate of $1.16 by $0.08. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The business had revenue of $3.53 billion for the quarter, compared to the consensus estimate of $3.50 billion. During the same period last year, the firm earned $1.11 earnings per share. The company's quarterly revenue was up .5% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. As a group, equities analysts forecast that BorgWarner Inc. will post 5.18 EPS for the current year.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Monday, June 1st. BorgWarner's dividend payout ratio (DPR) is presently 40.24%.

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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