Koss Olinger Consulting LLC Trims Stock Holdings in BorgWarner Inc. (NYSE:BWA)

Key Points

• Koss Olinger Consulting LLC reduced its stake in BorgWarner Inc. by **86.3%**, leaving it with only 7,404 shares worth $212,000.
• BorgWarner recently announced a **$1 billion share buyback plan**, allowing it to repurchase up to **13.2%** of its stock, indicating management's belief in the stock's undervaluation.
• The company declared an increased **quarterly dividend of $0.17 per share**, representing a yield of **1.8%** on an annualized basis and a payout ratio of **46.81%**.

Koss Olinger Consulting LLC decreased its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 86.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 7,404 shares of the auto parts company's stock after selling 46,594 shares during the period. Koss Olinger Consulting LLC's holdings in BorgWarner were worth $212,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. Global X Japan Co. Ltd. increased its stake in shares of BorgWarner by 133.4% in the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock worth $26,000 after purchasing an additional 523 shares in the last quarter. Manchester Capital Management LLC purchased a new position in BorgWarner during the first quarter valued at approximately $30,000. LRI Investments LLC grew its stake in 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 acquiring an additional 909 shares in the last quarter. Meeder Asset Management Inc. grew its stake in BorgWarner by 63.5% during 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 in the last quarter. 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. Hedge funds and other institutional investors own 95.67% of the company's stock.

Insider Buying and Selling

In related news, VP Isabelle Mckenzie sold 5,000 shares of the company's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $33.25, for a total transaction of $166,250.00. Following the completion of the sale, the vice president directly owned 63,445 shares in the company, valued at $2,109,546.25. This represents a 7.31% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.63% of the stock is owned by corporate insiders.

BorgWarner Trading Up 0.8%

Shares of BWA opened at $38.49 on Monday. The firm has a market cap of $8.33 billion, a price-to-earnings ratio of 40.95, a PEG ratio of 1.16 and a beta of 1.10. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. BorgWarner Inc. has a fifty-two week low of $24.40 and a fifty-two week high of $38.67. The firm has a 50 day moving average price of $34.75 and a 200-day moving average price of $31.41.

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 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 analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The business's quarterly revenue was up 1.0% on a year-over-year basis. During the same period in the previous year, the business posted $1.19 EPS. As a group, equities research analysts forecast that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner announced that its board has approved a share buyback plan on Thursday, July 31st that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the auto parts company to repurchase up to 13.2% of its stock through open market purchases. Stock buyback plans are often a sign that the company's leadership believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors 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 dividend on an annualized basis and a yield of 1.8%. BorgWarner's dividend payout ratio is currently 46.81%.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on BWA shares. Barclays reaffirmed an "overweight" rating and set a $45.00 price objective (up previously from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Robert W. Baird boosted their price objective on shares of BorgWarner from $32.00 to $39.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Wells Fargo & Company boosted their price objective on shares of BorgWarner from $45.00 to $46.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Guggenheim cut their price target on shares of BorgWarner from $38.00 to $33.00 and set a "buy" rating for the company in a research note on Tuesday, April 22nd. Finally, Evercore ISI boosted their price target on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. Six research 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 stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target 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.

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