BorgWarner Inc. (NYSE:BWA) Shares Sold by iA Global Asset Management Inc.

Key Points

• iA Global Asset Management Inc. has significantly reduced its stake in BorgWarner Inc. by 75.1%, leaving it with 12,911 shares valued at $370,000 after selling 39,026 shares in the first quarter.
• BorgWarner reported better-than-expected quarterly earnings of $1.21 EPS, surpassing estimates by $0.15, and achieved revenue of $3.64 billion, slightly above analyst expectations.
• The company declared a quarterly dividend of $0.17 per share, increasing its yield to 1.8%, and has authorized a $1.00 billion share buyback program indicating confidence in its stock value.

iA Global Asset Management Inc. lowered its position in BorgWarner Inc. (NYSE:BWA - Free Report) by 75.1% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 12,911 shares of the auto parts company's stock after selling 39,026 shares during the quarter. iA Global Asset Management Inc.'s holdings in BorgWarner were worth $370,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP boosted its holdings in BorgWarner by 7.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 11,284,040 shares of the auto parts company's stock valued at $358,720,000 after acquiring an additional 753,344 shares during the last quarter. Invesco Ltd. lifted its stake in shares of BorgWarner by 10.2% during the fourth quarter. Invesco Ltd. now owns 6,795,020 shares of the auto parts company's stock worth $216,014,000 after purchasing an additional 628,930 shares in the last quarter. LSV Asset Management lifted its stake in shares of BorgWarner by 36.7% during the first quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after purchasing an additional 1,580,935 shares in the last quarter. Turtle Creek Asset Management Inc. lifted its stake in shares of BorgWarner by 7.0% during the fourth quarter. Turtle Creek Asset Management Inc. now owns 4,078,780 shares of the auto parts company's stock worth $129,664,000 after purchasing an additional 267,250 shares in the last quarter. Finally, Earnest Partners LLC lifted its stake in shares of BorgWarner by 0.7% during the fourth quarter. Earnest Partners LLC now owns 3,927,415 shares of the auto parts company's stock worth $124,853,000 after purchasing an additional 27,960 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

BorgWarner Stock Up 0.8%

NYSE BWA traded up $0.29 on Friday, hitting $38.49. 1,971,992 shares of the stock traded hands, compared to its average volume of 2,040,971. The stock has a 50-day moving average of $34.75 and a 200 day moving average of $31.42. BorgWarner Inc. has a twelve month low of $24.40 and a twelve month high of $38.67. The company has a market capitalization of $8.33 billion, a P/E ratio of 40.95, a price-to-earnings-growth ratio of 1.16 and a beta of 1.10. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $3.64 billion for the quarter, compared to analysts' expectations of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%. BorgWarner's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.19 earnings per share. As a group, analysts expect that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be issued a dividend of $0.17 per share. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.8%. BorgWarner's dividend payout ratio is 46.81%.

BorgWarner declared that its Board of Directors has initiated a stock buyback program on Thursday, July 31st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to repurchase up to 13.2% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on BWA. Wells Fargo & Company boosted their price objective on BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. JPMorgan Chase & Co. lifted their target price on BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research report on Monday, August 4th. Robert W. Baird lifted their target price on BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Bank of America lifted their target price on BorgWarner from $35.00 to $41.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Finally, UBS Group lifted their target price on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Six investment analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $39.50.

Insider Activity at BorgWarner

In other news, VP Isabelle Mckenzie sold 5,000 shares of the company's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $33.25, for a total transaction of $166,250.00. Following the completion of the transaction, the vice president directly owned 63,445 shares of the company's stock, valued at approximately $2,109,546.25. This represents a 7.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Tonit M. Calaway sold 27,736 shares of the company's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $32.83, for a total value of $910,572.88. Following the transaction, the executive vice president directly owned 214,521 shares of the company's stock, valued at $7,042,724.43. This trade represents a 11.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.45% of the stock is currently owned by corporate insiders.

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.