LifePlan Financial LLC Sells 10,616 Shares of BorgWarner Inc. $BWA

Key Points

• LifePlan Financial LLC reduced its stake in BorgWarner Inc. by 30.6% during the second quarter, resulting in ownership of 24,052 shares valued at approximately $805,000.
• Multiple analysts have raised their price targets for BorgWarner, with recommendations of "outperform" and an average target of $41.21, indicating strong potential growth in the company's stock.
• BorgWarner announced a quarterly dividend increase to $0.17 per share and authorized a $1 billion stock buyback program, signifying management's belief in the stock's undervalue.

LifePlan Financial LLC cut its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 30.6% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 24,052 shares of the auto parts company's stock after selling 10,616 shares during the quarter. LifePlan Financial LLC's holdings in BorgWarner were worth $805,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Krilogy Financial LLC purchased a new position in BorgWarner in the second quarter valued at about $467,000. Baker Ellis Asset Management LLC purchased a new stake in shares of BorgWarner during the second quarter worth about $428,000. Parallel Advisors LLC grew its stake in shares of BorgWarner by 67.4% during the second quarter. Parallel Advisors LLC now owns 3,812 shares of the auto parts company's stock worth $128,000 after acquiring an additional 1,535 shares during the last quarter. Kera Capital Partners Inc. purchased a new stake in shares of BorgWarner during the second quarter worth about $212,000. Finally, Swedbank AB boosted its position in BorgWarner by 28.2% in the first quarter. Swedbank AB now owns 2,075,456 shares of the auto parts company's stock valued at $59,462,000 after buying an additional 456,906 shares during the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on BWA. Evercore ISI upped their target price on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research report on Monday, August 4th. Robert W. Baird raised BorgWarner from a "neutral" rating to an "outperform" rating and increased their price objective for the company from $41.00 to $52.00 in a research note on Wednesday, September 3rd. UBS Group increased their price objective on BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Wells Fargo & Company raised their target price on BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 9th. Finally, Morgan Stanley raised their target price on BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $41.21.

BorgWarner Trading Up 0.5%

BWA opened at $43.90 on Tuesday. The firm has a market cap of $9.50 billion, a price-to-earnings ratio of 46.70, a price-to-earnings-growth ratio of 1.44 and a beta of 1.09. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $44.45. The business's 50 day moving average is $39.55 and its two-hundred day moving average is $33.61. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings results 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. The company had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm's revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, research analysts predict that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders 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 dividend on an annualized basis and a dividend yield of 1.5%. BorgWarner's dividend payout ratio is presently 72.34%.

BorgWarner declared that its board has authorized a stock buyback program 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 programs are usually a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In related news, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the transaction, the vice president owned 55,945 shares of the company's stock, valued at $2,238,359.45. This represents a 4.28% 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, VP Stefan Demmerle sold 15,000 shares of the firm'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 sale, the vice president owned 234,040 shares of the company's stock, valued at $9,200,112.40. This trade represents a 6.02% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 31,272 shares of company stock valued at $1,263,318 over the last quarter. Company insiders own 0.63% 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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