Mawer Investment Management Ltd. Trims Stake in BorgWarner Inc. $BWA

Key Points

• Mawer Investment Management Ltd. reduced its BorgWarner stake by 6.2% in the fourth quarter, selling 58,055 shares and leaving it with 874,457 shares valued at about $39.4 million.
• Analysts are mixed on BorgWarner, with a current consensus rating of “Moderate Buy” and an average price target of $68.14. Recent target updates ranged from $61 to $75, and ratings are split evenly between Buy and Hold.
• BorgWarner posted a better-than-expected quarter, reporting $1.24 EPS versus $1.16 expected and revenue of $3.53 billion, while also announcing a quarterly dividend of $0.17 per share payable June 15.

Mawer Investment Management Ltd. lowered its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 6.2% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 874,457 shares of the auto parts company's stock after selling 58,055 shares during the quarter. Mawer Investment Management Ltd. owned about 0.41% of BorgWarner worth $39,403,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently modified their holdings of the company. Sound Income Strategies LLC increased its position in shares of BorgWarner by 9,888.9% during the fourth quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock valued at $42,000 after buying an additional 890 shares during the period. Torren Management LLC purchased a new position in shares of BorgWarner during the fourth quarter valued at about $48,000. Olistico Wealth LLC purchased a new stake in BorgWarner in the fourth quarter worth about $50,000. Hantz Financial Services Inc. grew its holdings in BorgWarner by 32.7% in the third quarter. Hantz Financial Services Inc. now owns 1,470 shares of the auto parts company's stock worth $65,000 after purchasing an additional 362 shares during the period. Finally, Atlantic Union Bankshares Corp purchased a new stake in BorgWarner in the third quarter worth about $70,000. Hedge funds and other institutional investors own 95.67% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. UBS Group upped their price objective on shares of BorgWarner from $56.00 to $61.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Robert W. Baird set a $76.00 price objective on shares of BorgWarner in a report on Thursday, February 12th. Evercore restated an "outperform" rating and issued a $75.00 price objective on shares of BorgWarner in a report on Tuesday, February 17th. JPMorgan Chase & Co. upped their price objective on shares of BorgWarner from $73.00 to $75.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of BorgWarner in a report on Monday, April 20th. Seven analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $68.14.

Insider Activity at BorgWarner

In related news, EVP Paul Arthur Farrell sold 12,012 shares of the stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $52.31, for a total transaction of $628,347.72. Following the transaction, the executive vice president owned 38,238 shares in the company, valued at $2,000,229.78. This represents a 23.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Tania Wingfield sold 5,000 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $63.24, for a total transaction of $316,200.00. Following the transaction, the executive vice president owned 35,365 shares in the company, valued at approximately $2,236,482.60. This trade represents a 12.39% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 96,033 shares of company stock valued at $5,792,558 over the last quarter. 0.76% of the stock is owned by company insiders.

BorgWarner Trading Down 1.2%

NYSE:BWA opened at $70.99 on Tuesday. The company's 50 day moving average price is $58.53 and its 200-day moving average price is $52.47. BorgWarner Inc. has a 52 week low of $31.83 and a 52 week high of $73.88. The company has a quick ratio of 1.75, a current ratio of 2.13 and a debt-to-equity ratio of 0.69. The stock has a market cap of $14.56 billion, a price-to-earnings ratio of 42.01, a PEG ratio of 1.38 and a beta of 1.07.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The auto parts company reported $1.24 EPS for the quarter, beating analysts' consensus estimates of $1.16 by $0.08. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The firm had revenue of $3.53 billion for the quarter, compared to analysts' expectations of $3.50 billion. During the same quarter in the prior year, the company posted $1.11 earnings per share. The business's revenue for the quarter was up .5% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, equities research analysts forecast that BorgWarner Inc. will post 5.18 earnings per share for the current fiscal year.

BorgWarner Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be given a dividend of $0.17 per share. The ex-dividend date is Monday, June 1st. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. BorgWarner's dividend payout ratio is 40.24%.

BorgWarner Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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