Lecap Asset Management Ltd. Sells 23,139 Shares of BorgWarner Inc. $BWA

Key Points

• Lecap Asset Management Ltd. reduced its shareholding in BorgWarner Inc. by 50.3%, selling 23,139 shares, resulting in a total of 22,899 shares valued at approximately $767,000.
• BorgWarner's recent earnings report revealed $1.21 earnings per share, exceeding analysts' expectations, with quarterly revenue of $3.64 billion.
• The company declared a quarterly dividend increase from $0.11 to $0.17 per share, representing an annualized dividend yield of 1.5%.

Lecap Asset Management Ltd. cut its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 50.3% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 22,899 shares of the auto parts company's stock after selling 23,139 shares during the quarter. Lecap Asset Management Ltd.'s holdings in BorgWarner were worth $767,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. LSV Asset Management lifted its stake in shares of 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. Millennium Management LLC lifted its position in shares of BorgWarner by 144.7% during the first quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company's stock worth $57,579,000 after acquiring an additional 1,188,466 shares in the last quarter. Leith Wheeler Investment Counsel Ltd. bought a new position in shares of BorgWarner in the first quarter worth $28,989,000. Principal Financial Group Inc. grew its position in shares of BorgWarner by 338.5% in the first quarter. Principal Financial Group Inc. now owns 1,085,149 shares of the auto parts company's stock valued at $31,090,000 after purchasing an additional 837,668 shares in the last quarter. Finally, Public Sector Pension Investment Board raised its stake in shares of BorgWarner by 1,121.2% during the 1st quarter. Public Sector Pension Investment Board now owns 693,551 shares of the auto parts company's stock valued at $19,870,000 after purchasing an additional 636,757 shares during the period. Institutional investors own 95.67% of the company's stock.

BorgWarner Price Performance

Shares of NYSE:BWA opened at $44.37 on Friday. The company's fifty day moving average price is $41.73 and its 200-day moving average price is $34.89. 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 has a market capitalization of $9.60 billion, a price-to-earnings ratio of 47.20, a PEG ratio of 1.46 and a beta of 1.09. BorgWarner Inc. has a one year low of $24.40 and a one year high of $44.70.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.06 by $0.15. The company 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 firm's quarterly revenue was up 1.0% compared to the same quarter last year. During the same period in the previous year, the business earned $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities research analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were given a dividend of $0.17 per share. This is a boost from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date was Tuesday, September 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.5%. BorgWarner's dividend payout ratio is currently 72.34%.

BorgWarner declared that its Board of Directors has approved a share repurchase program on Thursday, July 31st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Bank of America downgraded BorgWarner from a "buy" rating to a "neutral" rating and raised their target price for the stock from $41.00 to $46.00 in a research note on Wednesday, September 10th. Barclays restated an "overweight" rating and issued a $45.00 price objective (up from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Zacks Research upgraded shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 12th. Baird R W raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 3rd. Finally, Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, BorgWarner has an average rating of "Moderate Buy" and a consensus target price of $42.79.

Insider Activity at BorgWarner

In other BorgWarner news, VP Stefan Demmerle sold 15,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total transaction of $589,650.00. Following the transaction, the vice president directly owned 234,040 shares in the company, valued at $9,200,112.40. This trade represents a 6.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total transaction of $371,143.32. Following the completion of the sale, the director owned 78,903 shares of the company's stock, valued at approximately $3,338,385.93. The trade was a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 31,272 shares of company stock valued at $1,263,318. Corporate insiders own 0.45% of the company's stock.

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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