BorgWarner Inc. (NYSE:BWA) Shares Sold by Mawer Investment Management Ltd.

Key Points

• Mawer Investment Management Ltd. has reduced its stake in BorgWarner Inc. by 4.2%, selling 45,640 shares, and now holds approximately 1,035,577 shares valued at $29.67 million.
• BorgWarner's recent quarterly earnings report showed a profit of $1.11 EPS, exceeding analysts' estimates, with a revenue of $3.52 billion.
• The company has declared a quarterly dividend of $0.11 per share, yielding approximately 1.23% annually, with a payout ratio of 35.20%.

Mawer Investment Management Ltd. lessened its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 4.2% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,035,577 shares of the auto parts company's stock after selling 45,640 shares during the quarter. Mawer Investment Management Ltd. owned about 0.47% of BorgWarner worth $29,669,000 as of its most recent filing with the SEC.

Several other hedge funds have also recently added to or reduced their stakes in BWA. Norinchukin Bank The lifted its position in shares of BorgWarner by 4.4% in the 4th quarter. Norinchukin Bank The now owns 9,501 shares of the auto parts company's stock worth $302,000 after acquiring an additional 402 shares during the period. Farther Finance Advisors LLC increased its holdings in BorgWarner by 26.1% during the 1st quarter. Farther Finance Advisors LLC now owns 1,965 shares of the auto parts company's stock valued at $56,000 after purchasing an additional 407 shares in the last quarter. Beverly Hills Private Wealth LLC increased its holdings in BorgWarner by 5.7% during the 1st quarter. Beverly Hills Private Wealth LLC now owns 7,852 shares of the auto parts company's stock valued at $225,000 after purchasing an additional 421 shares in the last quarter. Janus Henderson Group PLC increased its holdings in BorgWarner by 0.4% during the 4th quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company's stock valued at $3,580,000 after purchasing an additional 501 shares in the last quarter. Finally, Global X Japan Co. Ltd. increased its holdings in BorgWarner by 133.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares in the last quarter. Institutional investors own 95.67% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Bank of America lifted their target price on BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Wells Fargo & Company raised their price target on BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a research report on Friday. Barclays restated an "overweight" rating and issued a $45.00 price target (up from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Piper Sandler lifted their target price on BorgWarner from $37.00 to $44.00 and gave the stock an "overweight" rating in a report on Friday. Finally, Guggenheim reduced their target price on BorgWarner from $38.00 to $33.00 and set a "buy" rating on the stock in a report on Tuesday, April 22nd. 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 company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $39.64.

BorgWarner Stock Performance

Shares of NYSE:BWA traded up $0.69 during mid-day trading on Friday, reaching $37.49. The company had a trading volume of 1,626,071 shares, compared to its average volume of 2,900,938. BorgWarner Inc. has a one year low of $24.40 and a one year high of $37.44. The firm has a market cap of $8.24 billion, a price-to-earnings ratio of 29.97, a PEG ratio of 1.60 and a beta of 1.09. The company has a current ratio of 1.97, a quick ratio of 1.60 and a debt-to-equity ratio of 0.65. The company's 50-day moving average price is $34.16 and its 200-day moving average price is $31.18.

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, beating 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 2.06% and a return on equity of 16.13%. The business's revenue for the quarter was up 1.0% on a year-over-year basis. During the same period in the previous year, the business earned $1.19 EPS. As a group, equities research analysts anticipate that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be paid a $0.17 dividend. 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 yield of 1.8%. BorgWarner's dividend payout ratio is presently 35.20%.

BorgWarner declared that its Board of Directors has approved a stock repurchase plan on Thursday, July 31st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits 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 Transactions at BorgWarner

In related news, EVP Tonit M. Calaway sold 27,736 shares of the stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $32.83, for a total value of $910,572.88. Following the completion of the transaction, the executive vice president directly owned 214,521 shares of the company's stock, valued at $7,042,724.43. This represents a 11.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Isabelle Mckenzie sold 5,000 shares of the firm's stock in a transaction that occurred 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 sale, the vice president directly owned 63,445 shares of the company's stock, valued at $2,109,546.25. This trade represents a 7.31% decrease in their position. The disclosure for this sale can be found here. 0.45% of the stock is owned by corporate 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.