Northern Trust Corp Sells 520,597 Shares of BorgWarner Inc. $BWA

Key Points

• Northern Trust Corp reduced its stake in BorgWarner Inc. by 25.2%, owning approximately 1.5 million shares worth $44.36 million after selling over 520,000 shares in the first quarter.
• BorgWarner's earnings report for the last quarter showed earnings per share of $1.21, exceeding analyst expectations, with revenue amounting to $3.64 billion.
• The company has initiated a stock repurchase program, allowing it to buy back up to $1.00 billion of its outstanding shares, indicating that the board believes the stock is undervalued.

Northern Trust Corp lessened its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 25.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 1,548,266 shares of the auto parts company's stock after selling 520,597 shares during the quarter. Northern Trust Corp owned approximately 0.70% of BorgWarner worth $44,358,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of the business. Trajan Wealth LLC boosted its stake in shares of BorgWarner by 4.6% in the 1st quarter. Trajan Wealth LLC now owns 7,978 shares of the auto parts company's stock valued at $229,000 after purchasing an additional 353 shares during the last quarter. Farther Finance Advisors LLC raised its position in shares of BorgWarner by 26.1% in the 1st quarter. Farther Finance Advisors LLC now owns 1,965 shares of the auto parts company's stock valued at $56,000 after acquiring an additional 407 shares during the period. Beverly Hills Private Wealth LLC raised its position in shares of BorgWarner by 5.7% in the 1st quarter. Beverly Hills Private Wealth LLC now owns 7,852 shares of the auto parts company's stock valued at $225,000 after acquiring an additional 421 shares during the period. Strengthening Families & Communities LLC raised its position in shares of BorgWarner by 14.6% in the 1st quarter. Strengthening Families & Communities LLC now owns 3,301 shares of the auto parts company's stock valued at $95,000 after acquiring an additional 421 shares during the period. Finally, Janus Henderson Group PLC raised its position in shares of BorgWarner by 0.4% in the 4th quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company's stock valued at $3,580,000 after acquiring an additional 501 shares during the period. Institutional investors own 95.67% of the company's stock.

Insider Buying and Selling at BorgWarner

In related news, VP Stefan Demmerle sold 15,000 shares of the firm's stock in a transaction 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 completion of the transaction, the vice president directly owned 234,040 shares of the company's stock, valued at approximately $9,200,112.40. This trade represents a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction on Tuesday, August 12th. The shares were 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 directly 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 disclosure for this sale can be found here. Insiders sold 22,500 shares of company stock valued at $892,175 over the last three months. 0.63% of the stock is owned by company insiders.

BorgWarner Stock Down 0.3%

Shares of NYSE BWA traded down $0.14 during midday trading on Tuesday, reaching $42.63. The company's stock had a trading volume of 2,378,379 shares, compared to its average volume of 2,204,465. The company has a current ratio of 2.02, a quick ratio of 1.66 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 $43.83. The stock has a market capitalization of $9.22 billion, a price-to-earnings ratio of 45.35, a PEG ratio of 1.29 and a beta of 1.09. The stock has a 50 day simple moving average of $37.86 and a 200-day simple moving average of $32.72.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company 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 company earned $1.19 earnings per share. The firm's revenue was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities research analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner declared that its board has authorized a stock repurchase 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 usually a sign that the company's management believes its shares are undervalued.

BorgWarner Increases Dividend

The company also recently announced 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 is a boost from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Tuesday, September 2nd. BorgWarner's dividend payout ratio (DPR) is 46.81%.

Analysts Set New Price Targets

A number of brokerages recently weighed in on BWA. Morgan Stanley increased their price target on shares of BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research report on Tuesday, August 12th. Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. JPMorgan Chase & Co. increased their price target on shares of BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research report on Monday, August 4th. Bank of America increased their price target on shares of BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Finally, UBS Group increased 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. Ten investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $39.64.

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.