Ieq Capital LLC Reduces Stock Position in BorgWarner Inc. $BWA

Key Points

• Ieq Capital LLC significantly reduced its stake in BorgWarner Inc. by 80.5%, retaining only 10,987 shares following the sale of 45,494 shares in the first quarter.
• In contrast, Dimensional Fund Advisors LP and LSV Asset Management increased their holdings in BorgWarner, with LSV acquiring an additional 1,580,935 shares, marking a 36.7% increase in their position.
• BorgWarner recently executed a share repurchase program authorizing up to $1.00 billion to reacquire 13.2% of its stock, reflecting confidence in the company's valuation.

Ieq Capital LLC lowered its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 80.5% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 10,987 shares of the auto parts company's stock after selling 45,494 shares during the quarter. Ieq Capital LLC's holdings in BorgWarner were worth $315,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in BWA. Mercer Global Advisors Inc. ADV purchased a new stake in shares of BorgWarner during the fourth quarter worth about $1,377,000. BNP Paribas Financial Markets grew its position in shares of BorgWarner by 44.3% during the fourth quarter. BNP Paribas Financial Markets now owns 436,609 shares of the auto parts company's stock worth $13,880,000 after purchasing an additional 133,939 shares in the last quarter. Bank of America Corp DE grew its position in shares of BorgWarner by 91.9% during the fourth quarter. Bank of America Corp DE now owns 3,878,932 shares of the auto parts company's stock worth $123,311,000 after purchasing an additional 1,857,907 shares in the last quarter. Cetera Investment Advisers grew its position in shares of BorgWarner by 78.6% during the fourth quarter. Cetera Investment Advisers now owns 37,521 shares of the auto parts company's stock worth $1,193,000 after purchasing an additional 16,518 shares in the last quarter. Finally, EP Wealth Advisors LLC grew its position in shares of BorgWarner by 5.8% during the fourth quarter. EP Wealth Advisors LLC now owns 10,562 shares of the auto parts company's stock worth $336,000 after purchasing an additional 578 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

Insider Transactions at BorgWarner

In related news, VP Stefan Demmerle sold 5,000 shares of the business's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total transaction of $202,500.00. Following the completion of the transaction, the vice president owned 229,040 shares in the company, valued at $9,276,120. The trade was a 2.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Isabelle Mckenzie sold 2,500 shares of the business's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the transaction, the vice president owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. The trade was a 4.28% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 31,272 shares of company stock worth $1,263,318. 0.45% of the stock is currently owned by company insiders.

BorgWarner Trading Up 2.7%

Shares of BorgWarner stock traded up $1.17 on Thursday, reaching $44.34. The company had a trading volume of 3,000,067 shares, compared to its average volume of 2,249,549. The firm has a market cap of $9.59 billion, a price-to-earnings ratio of 47.17, a P/E/G ratio of 1.30 and a beta of 1.09. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. The firm's 50-day moving average price is $39.20 and its two-hundred day moving average price is $33.37. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $44.45.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion during 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%.The company's quarterly revenue was up 1.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, research analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner declared that its board has initiated a share buyback plan on Thursday, July 31st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

BorgWarner Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be issued a $0.17 dividend. The ex-dividend date is Tuesday, September 2nd. 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 1.5%. BorgWarner's dividend payout ratio (DPR) is currently 72.34%.

Analysts Set New Price Targets

BWA has been the topic of a number of research analyst reports. Bank of America downgraded BorgWarner from a "buy" rating to a "neutral" rating and boosted their target price for the stock from $41.00 to $46.00 in a research report on Wednesday. Baird R W upgraded BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 3rd. Barclays restated an "overweight" rating and set a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. JPMorgan Chase & Co. raised their price target on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a report on Monday, August 4th. Finally, Evercore ISI raised their price target on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a report on Monday, August 4th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $41.21.

About BorgWarner

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.