Janney Montgomery Scott LLC Sells 9,893 Shares of BorgWarner Inc. $BWA

Key Points

• Janney Montgomery Scott LLC has decreased its holdings in BorgWarner Inc. by 21.5%, selling nearly 10,000 shares and currently owns 36,169 shares worth approximately $1.21 million.
• BorgWarner's quarterly dividend has increased from $0.11 to $0.17, reflecting a positive change and a yield of 1.7%.
• Equities analysts have boosted their target prices for BorgWarner, with Barclays raising it to $55 and Robert W. Baird setting it at $52, indicating a strong outlook for the stock.

Janney Montgomery Scott LLC reduced its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 21.5% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 36,169 shares of the auto parts company's stock after selling 9,893 shares during the period. Janney Montgomery Scott LLC's holdings in BorgWarner were worth $1,211,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Clean Yield Group bought a new stake in BorgWarner in the second quarter valued at $2,291,000. Sage Rhino Capital LLC increased its stake in BorgWarner by 26.4% in the second quarter. Sage Rhino Capital LLC now owns 10,364 shares of the auto parts company's stock valued at $347,000 after purchasing an additional 2,162 shares in the last quarter. Twelve Points Wealth Management LLC increased its stake in BorgWarner by 6.9% in the second quarter. Twelve Points Wealth Management LLC now owns 66,365 shares of the auto parts company's stock valued at $2,222,000 after purchasing an additional 4,296 shares in the last quarter. Signaturefd LLC increased its position in shares of BorgWarner by 72.8% during the second quarter. Signaturefd LLC now owns 2,513 shares of the auto parts company's stock worth $84,000 after acquiring an additional 1,059 shares in the last quarter. Finally, Paragon Capital Management Ltd bought a new stake in shares of BorgWarner during the second quarter worth about $229,000. 95.67% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Barclays boosted their target price on shares of BorgWarner from $45.00 to $55.00 and gave the stock an "overweight" rating in a research report on Friday. Robert W. Baird raised shares of BorgWarner from a "neutral" rating to an "outperform" rating and boosted their target price for the stock from $41.00 to $52.00 in a research report on Wednesday, September 3rd. Morgan Stanley boosted their target price on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Evercore ISI boosted their target price on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research report on Monday, August 4th. Finally, Zacks Research raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Friday, September 12th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $44.07.

BorgWarner Stock Down 1.1%

BWA opened at $41.18 on Monday. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. The stock has a market cap of $8.91 billion, a price-to-earnings ratio of 43.81, a PEG ratio of 1.36 and a beta of 1.09. BorgWarner Inc. has a twelve month low of $24.40 and a twelve month high of $44.97. The company's 50-day moving average price is $42.56 and its two-hundred day moving average price is $35.54.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating analysts' consensus estimates 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 net margin of 1.50% and a return on equity of 16.17%. The company's quarterly revenue was up 1.0% on a year-over-year basis. During the same period in the previous year, the company earned $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, equities analysts expect that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were paid a $0.17 dividend. The ex-dividend date was Tuesday, September 2nd. 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 1.7%. BorgWarner's dividend payout ratio is presently 72.34%.

BorgWarner announced that its Board of Directors has approved a share buyback plan on Thursday, July 31st that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the auto parts company to purchase up to 13.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling at BorgWarner

In other BorgWarner news, Director Alexis P. Michas sold 8,772 shares of the business's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the transaction, the director directly owned 78,903 shares in the company, valued at $3,338,385.93. The trade was a 10.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Stefan Demmerle sold 15,000 shares of the business's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total transaction of $589,650.00. Following the completion of the transaction, the vice president owned 234,040 shares in the company, valued at approximately $9,200,112.40. The trade was a 6.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 31,272 shares of company stock worth $1,263,318 over the last three months. 0.63% of the stock is currently owned by insiders.

BorgWarner Company 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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