MetLife Investment Management LLC Decreases Holdings in BorgWarner Inc. $BWA

Key Points

• MetLife Investment Management LLC significantly reduced its stake in BorgWarner Inc. by 93.2%, selling 53,951 shares and now holding only 3,915 shares valued at $112,000.
• Several hedge funds have increased their positions in BorgWarner, with Global X Japan Co. Ltd. boosting its stake by 133.4% during the first quarter.
• BorgWarner announced a $1.00 billion stock buyback plan, reflecting the board's belief that the stock is undervalued, and also declared an increased quarterly dividend of $0.17 per share.

MetLife Investment Management LLC trimmed its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 93.2% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,915 shares of the auto parts company's stock after selling 53,951 shares during the quarter. MetLife Investment Management LLC's holdings in BorgWarner were worth $112,000 at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in the stock. LSV Asset Management increased its position in BorgWarner by 36.7% in 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 acquiring an additional 1,580,935 shares during the period. Leith Wheeler Investment Counsel Ltd. acquired a new position in BorgWarner in the 1st quarter valued at approximately $28,989,000. Principal Financial Group Inc. increased its position in BorgWarner by 338.5% in the 1st quarter. Principal Financial Group Inc. now owns 1,085,149 shares of the auto parts company's stock valued at $31,090,000 after acquiring an additional 837,668 shares during the period. Public Sector Pension Investment Board increased its position in BorgWarner by 1,121.2% in 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 acquiring an additional 636,757 shares during the period. Finally, Nuveen LLC acquired a new position in BorgWarner in the 1st quarter valued at approximately $14,377,000. 95.67% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, VP Stefan Demmerle sold 5,000 shares of the stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total value of $202,500.00. Following the completion of the sale, the vice president owned 229,040 shares in the company, valued at $9,276,120. This represents a 2.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This represents a 4.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 31,272 shares of company stock worth $1,263,318 over the last quarter. Insiders own 0.63% of the company's stock.

BorgWarner Stock Down 0.7%

BWA traded down $0.29 during trading on Tuesday, hitting $43.58. 2,165,468 shares of the company's stock were exchanged, compared to its average volume of 2,192,353. The business's 50 day moving average is $39.71 and its two-hundred day moving average is $33.68. The stock has a market cap of $9.43 billion, a P/E ratio of 46.36, a PEG ratio of 1.45 and a beta of 1.09. 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 Inc. has a fifty-two week low of $24.40 and a fifty-two week high of $44.45.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating the consensus estimate of $1.06 by $0.15. The company had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm's revenue for the quarter was up 1.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, equities analysts expect that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner announced that its board has initiated a share repurchase program on Thursday, July 31st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its stock is undervalued.

BorgWarner Increases Dividend

The company 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. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Tuesday, September 2nd. BorgWarner's dividend payout ratio is currently 72.34%.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the stock. Baird R W upgraded shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 3rd. Evercore ISI increased their target price on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. Zacks Research raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Friday. Wells Fargo & Company increased their target price on shares of 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 increased their target price on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 12th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, BorgWarner has an average rating of "Moderate Buy" and a consensus target price of $41.21.

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.