210,350 Shares in BorgWarner Inc. (NYSE:BWA) Purchased by IPG Investment Advisors LLC

Key Points

• IPG Investment Advisors LLC has made a new investment of approximately $6.03 million in BorgWarner Inc., acquiring 210,350 shares, which represents 1.4% of their portfolio.
• BorgWarner has recently declared a quarterly dividend of $0.17 per share, an increase from its previous $0.11 dividend, giving it a yield of 1.8%.
• Several analysts have recently upgraded their price targets for BorgWarner, with Barclays setting it at $45.00, indicating a positive outlook for the company's stock.

IPG Investment Advisors LLC acquired a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 210,350 shares of the auto parts company's stock, valued at approximately $6,027,000. BorgWarner comprises 1.4% of IPG Investment Advisors LLC's investment portfolio, making the stock its 18th largest position. IPG Investment Advisors LLC owned about 0.10% of BorgWarner as of its most recent SEC filing.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Global X Japan Co. Ltd. raised its stake in shares of BorgWarner by 133.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares during the period. Manchester Capital Management LLC purchased a new position in BorgWarner during the 1st quarter valued at about $30,000. LRI Investments LLC increased its position in shares of BorgWarner by 1,515.0% during the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock valued at $31,000 after buying an additional 909 shares during the period. Meeder Asset Management Inc. boosted its position in shares of BorgWarner by 63.5% in the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after acquiring an additional 539 shares during the period. Finally, Allworth Financial LP grew its stake in BorgWarner by 123.1% during the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after acquiring an additional 793 shares in the last quarter. 95.67% of the stock is owned by institutional investors.

BorgWarner Trading Down 1.2%

BWA stock traded down $0.45 during trading on Tuesday, reaching $37.83. The company had a trading volume of 2,596,960 shares, compared to its average volume of 1,994,730. The business has a 50 day moving average of $34.45 and a 200 day moving average of $31.30. 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 company has a market cap of $8.19 billion, a P/E ratio of 40.24, a PEG ratio of 1.14 and a beta of 1.10. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $38.50.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating the consensus estimate of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%. The business had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. During the same quarter last year, the firm posted $1.19 earnings per share. The company's revenue for the quarter was up 1.0% on a year-over-year basis. As a group, sell-side analysts forecast that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner announced that its board has initiated a stock buyback program on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's management believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be paid 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 dividend on an annualized basis and a yield of 1.8%. BorgWarner's dividend payout ratio (DPR) is currently 46.81%.

Insider Transactions at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 5,000 shares of BorgWarner stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $33.25, for a total value of $166,250.00. Following the completion of the sale, the vice president owned 63,445 shares of the company's stock, valued at approximately $2,109,546.25. The trade was a 7.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Tonit M. Calaway sold 27,736 shares of the company's stock in a transaction 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 sale, the executive vice president owned 214,521 shares of the company's stock, valued at approximately $7,042,724.43. This trade represents a 11.45% decrease in their position. The disclosure for this sale can be found here. 0.63% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. The Goldman Sachs Group raised shares of BorgWarner from a "neutral" rating to a "buy" rating and raised their price target for the company from $31.00 to $34.00 in a report on Thursday, April 10th. Bank of America lifted their price target on BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Evercore ISI upped their price objective on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research report on Monday. JPMorgan Chase & Co. lifted their target price on shares of BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research report on Monday. Finally, Wells Fargo & Company increased their price target on shares of BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a report on Friday. Six research analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $39.50.

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.