MMCAP International Inc. SPC Has $5.21 Million Position in BorgWarner Inc. (NYSE:BWA)

Key Points

• MMCAP International Inc. SPC has reduced its stake in BorgWarner Inc. by 32.6%, selling 88,034 shares and now controlling 181,724 shares, which constitutes about 0.9% of its investment portfolio.
• BorgWarner has recently increased its quarterly dividend from $0.11 to $0.17 per share, reflecting its commitment to returning value to shareholders.
• Analysts have upgraded their ratings for BorgWarner, with a majority issuing "buy" ratings and an average price target increase to $39.50.

MMCAP International Inc. SPC decreased its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 32.6% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 181,724 shares of the auto parts company's stock after selling 88,034 shares during the period. BorgWarner accounts for 0.9% of MMCAP International Inc. SPC's portfolio, making the stock its 28th largest position. MMCAP International Inc. SPC owned approximately 0.08% of BorgWarner worth $5,206,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Global X Japan Co. Ltd. increased its stake 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 buying an additional 523 shares during the period. Manchester Capital Management LLC bought a new stake in BorgWarner during the first quarter worth approximately $30,000. LRI Investments LLC lifted its position in BorgWarner by 1,515.0% in the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock worth $31,000 after purchasing an additional 909 shares during the period. Meeder Asset Management Inc. increased its position in shares of BorgWarner by 63.5% during the 1st quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after purchasing an additional 539 shares during the period. Finally, Allworth Financial LP raised its stake in shares of BorgWarner by 123.1% in the 1st quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock worth $41,000 after buying an additional 793 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors.

BorgWarner Stock Down 0.7%

Shares of BWA stock traded down $0.30 during trading on Thursday, reaching $41.28. The company's stock had a trading volume of 974,780 shares, compared to its average volume of 2,867,285. The company has a market cap of $8.93 billion, a price-to-earnings ratio of 43.94, a price-to-earnings-growth ratio of 1.21 and a beta of 1.10. The business has a fifty day moving average price of $35.21 and a 200-day moving average price of $31.59. 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 one year low of $24.40 and a one year high of $41.67.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.15. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The business had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.56 billion. During the same period last year, the business earned $1.19 earnings per share. The firm's revenue was up 1.0% on a year-over-year basis. Analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner Increases Dividend

The firm 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 represents a $0.68 dividend on an annualized basis and a yield of 1.6%. This is a boost from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio is 72.34%.

BorgWarner announced that its Board of Directors has authorized a stock repurchase program on Thursday, July 31st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on BWA. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Piper Sandler boosted their price target on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Evercore ISI raised their price objective 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. Wells Fargo & Company lifted their price objective on shares of BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Finally, Guggenheim reduced their target price on BorgWarner from $38.00 to $33.00 and set a "buy" rating for the company in a report on Tuesday, April 22nd. Six analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, BorgWarner presently has a consensus rating of "Moderate Buy" and an average target price of $39.64.

Insiders Place Their Bets

In related news, VP Isabelle Mckenzie sold 5,000 shares of the company's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $33.25, for a total value of $166,250.00. Following the transaction, the vice president owned 63,445 shares in the company, valued at approximately $2,109,546.25. This represents a 7.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.45% of the company's stock.

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.