Nomura Holdings Inc. Increases Stock Position in BorgWarner Inc. $BWA

Key Points

• Nomura Holdings Inc. increased its stake in BorgWarner Inc. by 101.6%, owning 14,514 shares valued at $416,000 as of the latest SEC filing.
• BorgWarner received multiple analyst upgrades, including a raise from "neutral" to "outperform" by Robert W. Baird, with a target price increase to $52.00.
• The company announced a quarterly dividend of $0.17 per share, up from $0.11, alongside a stock buyback plan of $1.00 billion.

Nomura Holdings Inc. increased its stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 101.6% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 14,514 shares of the auto parts company's stock after purchasing an additional 7,313 shares during the period. Nomura Holdings Inc.'s holdings in BorgWarner were worth $416,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in BWA. New York State Teachers Retirement System raised its stake in BorgWarner by 3.8% during the 1st quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock valued at $6,280,000 after buying an additional 7,977 shares during the last quarter. Avantax Advisory Services Inc. grew its holdings in shares of BorgWarner by 13.3% in the first quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock worth $380,000 after acquiring an additional 1,555 shares during the period. Sage Rhino Capital LLC purchased a new stake in BorgWarner during the first quarter valued at $235,000. Brown Advisory Inc. bought a new position in BorgWarner in the first quarter valued at about $522,000. Finally, Alpha Omega Wealth Management LLC boosted its position in BorgWarner by 59.8% in the first quarter. Alpha Omega Wealth Management LLC now owns 25,190 shares of the auto parts company's stock worth $722,000 after purchasing an additional 9,427 shares during the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

Insider Activity

In other news, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value 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. This represents a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total value of $589,650.00. Following the sale, the vice president directly owned 234,040 shares in the company, valued at $9,200,112.40. This trade represents a 6.02% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 31,272 shares of company stock worth $1,263,318 over the last ninety days. Corporate insiders own 0.45% of the company's stock.

BorgWarner Price Performance

Shares of BWA traded down $0.53 during mid-day trading on Wednesday, reaching $43.17. The stock had a trading volume of 2,616,566 shares, compared to its average volume of 2,264,827. The business has a fifty day moving average of $39.02 and a 200 day moving average of $33.27. 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 has a market cap of $9.34 billion, a price-to-earnings ratio of 45.92, a PEG ratio of 1.32 and a beta of 1.09. BorgWarner Inc. has a 12 month low of $24.40 and a 12 month high of $44.45.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data 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. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. During the same period last year, the firm earned $1.19 EPS. The company's revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities analysts predict that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner announced that its board has initiated a stock repurchase plan on Thursday, July 31st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.

BorgWarner Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be given a $0.17 dividend. The ex-dividend date is 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 1.6%. BorgWarner's dividend payout ratio (DPR) is presently 72.34%.

Analyst Upgrades and Downgrades

BWA has been the subject of several research reports. UBS Group upped 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. Piper Sandler upped their target price on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Wells Fargo & Company increased their price target on shares of BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a research report on Tuesday. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Finally, JPMorgan Chase & Co. upped their price objective on BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research note on Monday, August 4th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $41.21.

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.