MAC Alpha Capital Management LP Lowers Stock Position in BorgWarner Inc. $BWA

Key Points

• MAC Alpha Capital Management reduced its BorgWarner stake by 39.3% in the second quarter, selling 61,158 shares and retaining 94,400 shares valued at approximately $6.27 million.
• Analysts maintain a generally positive view of BorgWarner, with a consensus “Moderate Buy” rating and an average price target of $78.86; nine analysts rate the stock a Buy versus six Holds.
• BorgWarner exceeded quarterly earnings expectations and authorized a $1 billion share-repurchase program, alongside its $0.17 quarterly dividend. Shares opened at $63.41, while the company forecast fiscal 2026 EPS of $5.05–$5.30.

MAC Alpha Capital Management LP cut its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 39.3% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 94,400 shares of the auto parts company's stock after selling 61,158 shares during the quarter. BorgWarner makes up approximately 1.3% of MAC Alpha Capital Management LP's holdings, making the stock its 13th biggest position. MAC Alpha Capital Management LP's holdings in BorgWarner were worth $6,269,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in BWA. Clearstead Trust LLC bought a new stake in BorgWarner during the 2nd quarter worth approximately $28,000. Ceredex Value Advisors LLC bought a new position in shares of BorgWarner in the second quarter worth approximately $40,000. Fiduciary Financial Advisors bought a new position in shares of BorgWarner in the second quarter worth approximately $49,000. Cedar Mountain Advisors LLC purchased a new stake in shares of BorgWarner in the first quarter worth $55,000. Finally, Jones Financial Companies Lllp purchased a new stake in shares of BorgWarner in the second quarter worth $57,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on BWA shares. Weiss Ratings upgraded shares of BorgWarner from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, June 29th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a report on Thursday, August 6th. UBS Group upgraded BorgWarner from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $61.00 to $95.00 in a research report on Wednesday, June 10th. Wall Street Zen cut BorgWarner from a "buy" rating to a "hold" rating in a report on Saturday, September 12th. Finally, JPMorgan Chase & Co. increased their price objective on shares of BorgWarner from $75.00 to $85.00 and gave the company an "overweight" rating in a report on Monday, August 10th. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $78.86.

Insider Activity at BorgWarner

In related news, Director Michael Hanley sold 5,000 shares of BorgWarner stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $65.51, for a total value of $327,550.00. Following the completion of the transaction, the director owned 34,313 shares in the company, valued at approximately $2,247,844.63. This trade represents a 12.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Rajesh Kalathur acquired 7,407 shares of BorgWarner stock in a transaction on Wednesday, August 19th. The shares were bought at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the purchase, the director directly owned 7,407 shares of the company's stock, valued at $500,639.13. The trade was a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.76% of the stock is owned by insiders.

BorgWarner Stock Up 0.1%

Shares of BWA opened at $63.41 on Monday. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76. The stock has a market capitalization of $12.91 billion, a price-to-earnings ratio of 31.71, a price-to-earnings-growth ratio of 1.14 and a beta of 1.12. BorgWarner Inc. has a 1 year low of $40.50 and a 1 year high of $78.82. The business's 50 day simple moving average is $65.14 and its 200-day simple moving average is $62.63.

BorgWarner (NYSE:BWA - Get Free Report) last posted its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, beating analysts' consensus estimates of $1.28 by $0.14. The firm had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. BorgWarner's revenue for the quarter was up .3% compared to the same quarter last year. During the same period last year, the firm posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, equities analysts expect that BorgWarner Inc. will post 5.2 earnings per share for the current fiscal year.

BorgWarner Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Tuesday, September 1st. BorgWarner's dividend payout ratio is currently 34.00%.

BorgWarner announced that its Board of Directors has initiated a share repurchase program on Wednesday, August 5th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the auto parts company to repurchase up to 7.7% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

About BorgWarner

BorgWarner Inc NYSE: BWA is a global automotive technology company headquartered in Auburn Hills, Michigan. The company develops and supplies propulsion and drivetrain systems for passenger vehicles, commercial vehicles and off-highway applications, serving automakers and other transportation manufacturers worldwide.

Its product portfolio includes turbochargers, transmission systems, dual-clutch modules, four-wheel-drive systems, emissions technologies, and components for hybrid and internal-combustion vehicles.

Want to see what other hedge funds are holding BWA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for BorgWarner Inc. (NYSE:BWA - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.