Norges Bank Acquires New Stake in BorgWarner Inc. $BWA

Key Points

• Norges Bank opened a new position in BorgWarner, buying 3.48 million shares valued at about $156.8 million and ending the quarter with roughly 1.63% ownership.
• BorgWarner posted a stronger-than-expected quarter, with EPS of $1.24 beating estimates and revenue of $3.53 billion slightly topping forecasts; the company also reaffirmed a FY2026 EPS guidance range of 5.00 to 5.20.
• The company declared a quarterly dividend of $0.17 per share, while analysts currently view the stock as a Moderate Buy with a consensus price target of about $71.14.

Norges Bank acquired a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 3,479,679 shares of the auto parts company's stock, valued at approximately $156,794,000. Norges Bank owned about 1.63% of BorgWarner at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Sound Income Strategies LLC lifted its position in shares of BorgWarner by 9,888.9% during the fourth quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock worth $42,000 after acquiring an additional 890 shares in the last quarter. Torren Management LLC purchased a new stake in shares of BorgWarner during the fourth quarter worth $48,000. Olistico Wealth LLC purchased a new stake in shares of BorgWarner during the fourth quarter worth $50,000. Hantz Financial Services Inc. lifted its position in shares of BorgWarner by 32.7% during the third quarter. Hantz Financial Services Inc. now owns 1,470 shares of the auto parts company's stock worth $65,000 after acquiring an additional 362 shares in the last quarter. Finally, Atlantic Union Bankshares Corp purchased a new stake in shares of BorgWarner during the third quarter worth $70,000. Hedge funds and other institutional investors own 95.67% of the company's stock.

BorgWarner Stock Performance

Shares of BWA opened at $76.58 on Thursday. The company has a 50-day simple moving average of $59.42 and a two-hundred day simple moving average of $52.89. BorgWarner Inc. has a one year low of $31.83 and a one year high of $78.82. The firm has a market capitalization of $15.71 billion, a PE ratio of 45.31, a price-to-earnings-growth ratio of 1.42 and a beta of 1.07. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.13 and a quick ratio of 1.75.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 EPS for the quarter, beating the consensus estimate of $1.16 by $0.08. The company had revenue of $3.53 billion for the quarter, compared to the consensus estimate of $3.50 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. BorgWarner's revenue for the quarter was up .5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.11 EPS. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, analysts anticipate that BorgWarner Inc. will post 5.18 EPS for the current fiscal year.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Monday, June 1st. BorgWarner's dividend payout ratio (DPR) is currently 40.24%.

Insider Buying and Selling at BorgWarner

In other news, EVP Tonit M. Calaway sold 14,021 shares of BorgWarner stock in a transaction on Monday, March 9th. The shares were sold at an average price of $51.46, for a total transaction of $721,520.66. Following the transaction, the executive vice president owned 204,913 shares in the company, valued at $10,544,822.98. This trade represents a 6.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Paul Arthur Farrell sold 12,012 shares of BorgWarner stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $52.31, for a total transaction of $628,347.72. Following the transaction, the executive vice president owned 38,238 shares in the company, valued at $2,000,229.78. This represents a 23.90% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 96,033 shares of company stock worth $5,792,558. Insiders own 0.76% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently weighed in on BWA shares. Bank of America started coverage on shares of BorgWarner in a report on Wednesday, March 4th. They issued a "neutral" rating on the stock. Deutsche Bank Aktiengesellschaft set a $81.00 price target on shares of BorgWarner in a report on Tuesday, April 21st. New Street Research set a $66.00 price target on shares of BorgWarner in a report on Thursday, February 12th. UBS Group upped their price target on shares of BorgWarner from $56.00 to $61.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Finally, TD Cowen increased their target price on BorgWarner from $66.00 to $67.00 and gave the company a "hold" rating in a research note on Thursday, May 7th. Seven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $71.14.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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