Hsbc Holdings PLC Increases Stake in BorgWarner Inc. $BWA

Key Points

• HSBC Holdings PLC increased its stake in BorgWarner by 39.6% in the fourth quarter, buying an additional 397,926 shares to bring its total to 1,403,488 shares worth about $63.6 million.
• BorgWarner reported better-than-expected quarterly results, posting EPS of $1.24 versus the $1.16 estimate and revenue of $3.53 billion versus $3.50 billion expected. The company also reaffirmed FY 2026 guidance of 5.0 to 5.2 EPS.
• Several analysts turned more bullish on the stock, with UBS upgrading BorgWarner to buy and raising its price target to $95. Overall, the stock has a Moderate Buy consensus and a $74 average price target.

Hsbc Holdings PLC grew its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 39.6% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,403,488 shares of the auto parts company's stock after buying an additional 397,926 shares during the period. Hsbc Holdings PLC owned 0.68% of BorgWarner worth $63,563,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently modified their holdings of the company. Prosperity Bancshares Inc bought a new position in shares of BorgWarner during the 4th quarter valued at about $37,000. Sound Income Strategies LLC lifted its position in shares of BorgWarner by 9,888.9% in the fourth quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock worth $42,000 after buying an additional 890 shares in the last quarter. Torren Management LLC purchased a new stake in shares of BorgWarner in the fourth quarter worth about $48,000. Olistico Wealth LLC bought a new position in BorgWarner during the fourth quarter valued at approximately $50,000. Finally, UMB Bank n.a. grew its holdings in BorgWarner by 28.1% during the 4th quarter. UMB Bank n.a. now owns 1,709 shares of the auto parts company's stock valued at $77,000 after buying an additional 375 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

Insider Activity

In other BorgWarner news, VP Isabelle Mckenzie sold 3,500 shares of the firm's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $63.35, for a total value of $221,725.00. Following the completion of the sale, the vice president owned 57,828 shares of the company's stock, valued at $3,663,403.80. This trade represents a 5.71% decrease in their ownership of the stock. 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 business's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total value of $1,951,990.00. Following the transaction, the chief executive officer owned 405,964 shares of the company's stock, valued at $27,325,436.84. This trade represents a 6.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 67,500 shares of company stock valued at $4,310,115 in the last quarter. 0.76% of the stock is currently owned by company insiders.

BorgWarner Price Performance

NYSE:BWA opened at $63.52 on Monday. The firm has a market capitalization of $13.03 billion, a price-to-earnings ratio of 37.59, a PEG ratio of 1.22 and a beta of 1.09. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.13 and a quick ratio of 1.75. The business has a 50 day simple moving average of $66.65 and a 200-day simple moving average of $57.12. BorgWarner Inc. has a 1 year low of $34.27 and a 1 year high of $78.82.

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, beating the consensus estimate of $1.16 by $0.08. The company had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.BorgWarner's quarterly revenue was up .5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.11 EPS. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Equities analysts forecast that BorgWarner Inc. will post 5.18 EPS for the current year.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Monday, June 1st. BorgWarner's dividend payout ratio (DPR) is 40.24%.

Analysts Set New Price Targets

Several brokerages have recently issued reports on BWA. Barclays upped their price objective on BorgWarner from $70.00 to $75.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. Wall Street Zen raised shares of BorgWarner from a "hold" rating to a "buy" rating in a report on Saturday, June 27th. UBS Group upgraded shares of BorgWarner from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $61.00 to $95.00 in a research report on Wednesday, June 10th. JPMorgan Chase & Co. upped their price target on shares of BorgWarner from $73.00 to $75.00 and gave the company an "overweight" rating in a research note on Thursday, May 14th. Finally, Wolfe Research reiterated an "outperform" rating and set a $95.00 price objective on shares of BorgWarner in a research report on Wednesday, June 3rd. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $74.00.

BorgWarner 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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