Natixis Advisors LLC Has $17.01 Million Stock Position in BorgWarner Inc. (NYSE:BWA)

Key Points

• Natixis Advisors LLC reduced its holdings in BorgWarner Inc. by 29.0%, selling 242,711 shares and bringing its total ownership to 593,592 shares.
• BorgWarner announced a $1.00 billion stock buyback program, allowing the company to repurchase up to 13.2% of its shares, indicating management's confidence in the stock's value.
• The company recently raised its quarterly dividend to $0.17 per share, reflecting an increase from the previous rate of $0.11 and a yield of 1.8%.

Natixis Advisors LLC cut its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 29.0% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 593,592 shares of the auto parts company's stock after selling 242,711 shares during the quarter. Natixis Advisors LLC owned approximately 0.27% of BorgWarner worth $17,007,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also modified their holdings of the company. Clark Estates Inc. NY purchased a new position in BorgWarner in the first quarter valued at about $1,232,000. Howard Capital Management Inc. grew its stake in shares of BorgWarner by 2.3% in the 1st quarter. Howard Capital Management Inc. now owns 86,758 shares of the auto parts company's stock valued at $2,486,000 after buying an additional 1,947 shares in the last quarter. Arkadios Wealth Advisors grew its stake in shares of BorgWarner by 111.7% in the 1st quarter. Arkadios Wealth Advisors now owns 27,140 shares of the auto parts company's stock valued at $778,000 after buying an additional 14,319 shares in the last quarter. Vestcor Inc acquired a new position in BorgWarner in the first quarter worth approximately $396,000. Finally, XTX Topco Ltd raised its position in BorgWarner by 104.1% during the first quarter. XTX Topco Ltd now owns 23,496 shares of the auto parts company's stock valued at $673,000 after acquiring an additional 11,985 shares in the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Wells Fargo & Company boosted their target price 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. Bank of America lifted their price objective on shares of BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Robert W. Baird increased their target price on shares of BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Evercore ISI raised their target price on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a report on Monday. Finally, Barclays reaffirmed an "overweight" rating and issued a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Six research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $39.50.

Insider Activity

In other news, VP Isabelle Mckenzie sold 5,000 shares of the business's stock in a transaction that occurred on Friday, May 16th. The stock was 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 in the company, valued at approximately $2,109,546.25. The trade was a 7.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Tonit M. Calaway sold 27,736 shares of the firm's stock in a transaction on Monday, May 12th. The stock was 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 approximately $7,042,724.43. This trade represents a 11.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.63% of the company's stock.

BorgWarner Stock Performance

Shares of BWA stock traded up $0.17 during trading hours on Wednesday, reaching $38.05. 1,776,083 shares of the company's stock were exchanged, compared to its average volume of 2,897,604. The business has a fifty day moving average price of $34.45 and a 200-day moving average price of $31.30. The stock has a market capitalization of $8.23 billion, a P/E ratio of 40.47, a P/E/G ratio of 1.14 and a beta of 1.10. 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 $38.50.

BorgWarner (NYSE:BWA - Get Free Report) last released 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 firm had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The business's quarterly revenue was up 1.0% compared to the same quarter last year. During the same period in the prior year, the company earned $1.19 EPS. Analysts predict that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The company 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 dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.8%. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is currently 46.81%.

BorgWarner declared that its Board of Directors has initiated a share repurchase plan on Thursday, July 31st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

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.