Ninety One UK Ltd Sells 1,120,324 Shares of BorgWarner Inc. $BWA

Key Points

• Ninety One UK Ltd has significantly reduced its stake in BorgWarner Inc. by selling 1,120,324 shares, representing a 71.5% decrease, leaving them with 445,660 shares valued at approximately $14.9 million.
• BorgWarner's earnings per share for the last quarter beat estimates at $1.21, with revenues reaching $3.64 billion, demonstrating a year-over-year revenue increase of 1.0%.
• The company has announced a $1.0 billion stock buyback plan and increased its quarterly dividend from $0.11 to $0.17, reflecting a stronger financial position and a commitment to returning value to shareholders.

Ninety One UK Ltd trimmed its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 71.5% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 445,660 shares of the auto parts company's stock after selling 1,120,324 shares during the period. Ninety One UK Ltd owned about 0.20% of BorgWarner worth $14,921,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently made changes to their positions in BWA. LSV Asset Management lifted its position in shares of BorgWarner by 36.7% during the first quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock valued at $168,722,000 after purchasing an additional 1,580,935 shares in the last quarter. Millennium Management LLC lifted its position in shares of BorgWarner by 144.7% during the first quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company's stock valued at $57,579,000 after purchasing an additional 1,188,466 shares in the last quarter. Leith Wheeler Investment Counsel Ltd. bought a new position in shares of BorgWarner during the first quarter valued at about $28,989,000. Principal Financial Group Inc. lifted its position in shares of BorgWarner by 338.5% during the first quarter. Principal Financial Group Inc. now owns 1,085,149 shares of the auto parts company's stock valued at $31,090,000 after purchasing an additional 837,668 shares in the last quarter. Finally, Public Sector Pension Investment Board lifted its position in shares of BorgWarner by 1,121.2% during the first quarter. Public Sector Pension Investment Board now owns 693,551 shares of the auto parts company's stock valued at $19,870,000 after purchasing an additional 636,757 shares in the last quarter. 95.67% of the stock is owned by institutional investors.

BorgWarner Stock Performance

Shares of BWA stock opened at $44.30 on Thursday. The firm has a market cap of $9.58 billion, a price-to-earnings ratio of 47.12, a P/E/G ratio of 1.45 and a beta of 1.09. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. The firm's 50-day simple moving average is $41.57 and its two-hundred day simple moving average is $34.78. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $44.70.

BorgWarner (NYSE:BWA - Get Free Report) last posted its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.06 by $0.15. The firm 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 company's revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the company earned $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, equities analysts forecast that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner declared that its Board of Directors has approved a stock buyback plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were paid a $0.17 dividend. The ex-dividend date was Tuesday, September 2nd. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.5%. BorgWarner's dividend payout ratio is 72.34%.

Insider Transactions at BorgWarner

In other news, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the transaction, the director owned 78,903 shares in the company, valued at $3,338,385.93. This trade represents a 10.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the transaction, the vice president owned 55,945 shares of the company's stock, valued at $2,238,359.45. The trade was a 4.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold 31,272 shares of company stock worth $1,263,318 over the last quarter. Corporate insiders own 0.45% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. UBS Group raised their price target on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a research report on Monday, July 14th. Baird R W raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 3rd. Barclays reissued an "overweight" rating and set a $45.00 price target (up from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. The Goldman Sachs Group lifted their price objective on shares of BorgWarner from $45.00 to $52.00 and gave the stock a "buy" rating in a research report on Monday. Finally, Wells Fargo & Company lifted their price objective on shares of BorgWarner from $50.00 to $54.00 and gave the stock an "overweight" rating in a research report on Thursday, September 25th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, BorgWarner presently has an average rating of "Moderate Buy" and a consensus price target of $42.79.

BorgWarner 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.

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