Jackson Thornton Wealth Management LLC Takes $236,000 Position in BorgWarner Inc. $BWA

Key Points

• Jackson Thornton Wealth Management LLC acquired a new position in BorgWarner Inc. valued at approximately $236,000, purchasing 6,693 shares during the second quarter.
• Several institutional investors, including Dimensional Fund Advisors and LSV Asset Management, have recently increased their stakes in BorgWarner, indicating significant institutional interest with 95.67% of the company's stock owned by institutional investors.
• BorgWarner recently raised its quarterly dividend from $0.11 to $0.17, reflecting an increased annualized dividend yield of 1.6%, and has authorized a buyback plan of up to $1 billion in shares.

Jackson Thornton Wealth Management LLC bought a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 6,693 shares of the auto parts company's stock, valued at approximately $236,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP increased its position in BorgWarner by 2.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock valued at $331,429,000 after buying an additional 284,587 shares in the last quarter. LSV Asset Management increased its position in BorgWarner by 36.7% during the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock valued at $168,722,000 after buying an additional 1,580,935 shares in the last quarter. American Century Companies Inc. increased its position in BorgWarner by 1.7% during the 1st quarter. American Century Companies Inc. now owns 3,716,576 shares of the auto parts company's stock valued at $106,480,000 after buying an additional 60,382 shares in the last quarter. Swedbank AB increased its position in BorgWarner by 23.3% during the 2nd quarter. Swedbank AB now owns 2,558,425 shares of the auto parts company's stock valued at $85,656,000 after buying an additional 482,969 shares in the last quarter. Finally, Millennium Management LLC increased its position in BorgWarner by 144.7% during the 1st quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company's stock valued at $57,579,000 after buying an additional 1,188,466 shares in the last quarter. Institutional investors own 95.67% of the company's stock.

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. Wells Fargo & Company raised their price objective on BorgWarner from $50.00 to $54.00 and gave the company an "overweight" rating in a research report on Thursday, September 25th. Zacks Research lowered BorgWarner from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 13th. Morgan Stanley lifted their target price on BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a report on Tuesday, August 12th. Piper Sandler lifted their target price on BorgWarner from $37.00 to $44.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Finally, Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $45.21.

BorgWarner Stock Up 1.0%

BorgWarner stock opened at $43.00 on Tuesday. The firm has a market cap of $9.30 billion, a price-to-earnings ratio of 45.74, a PEG ratio of 1.57 and a beta of 1.09. The stock has a fifty day simple moving average of $43.05 and a two-hundred day simple moving average of $36.15. BorgWarner Inc. has a 12 month low of $24.40 and a 12 month high of $44.97. 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 issued its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping 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 company had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. During the same quarter in the previous year, the company posted $1.19 earnings per share. BorgWarner's revenue was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities analysts predict that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were issued a $0.17 dividend. The ex-dividend date of this dividend was Tuesday, September 2nd. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. BorgWarner's dividend payout ratio is presently 72.34%.

BorgWarner declared that its board has authorized a stock buyback plan on Thursday, July 31st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to repurchase up to 13.2% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In related news, VP Stefan Demmerle sold 5,000 shares of BorgWarner stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total value of $202,500.00. Following the completion of the sale, the vice president owned 229,040 shares of the company's stock, valued at $9,276,120. The trade was a 2.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the sale, the director directly owned 78,903 shares of the company's stock, valued at $3,338,385.93. The trade was a 10.01% decrease in their position. The disclosure for this sale can be found here. Insiders sold 31,272 shares of company stock valued at $1,263,318 over the last 90 days. Company insiders own 0.45% of the company's stock.

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.

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