Northwestern Mutual Investment Management Company LLC Acquires Shares of 47,863 BorgWarner Inc. $BWA

Key Points

• Northwestern Mutual Investment Management disclosed a new fourth-quarter stake in BorgWarner, buying 47,863 shares worth about $2.16 million.
• BorgWarner reported better-than-expected quarterly results, with EPS of $1.24 topping estimates and revenue of $3.53 billion slightly ahead of forecasts; the company also reaffirmed its full-year outlook.
• Analyst sentiment remains constructive, with firms like JPMorgan and TD Cowen raising price targets, though recent insider selling has added some caution to the stock’s outlook.

Northwestern Mutual Investment Management Company LLC acquired a new stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 47,863 shares of the auto parts company's stock, valued at approximately $2,157,000.

Other institutional investors have also made changes to their positions in the company. Root Financial Partners LLC bought a new position in shares of BorgWarner in the third quarter valued at about $27,000. Sound Income Strategies LLC raised its holdings in shares of BorgWarner by 9,888.9% in the fourth quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock valued at $42,000 after buying an additional 890 shares during the last quarter. Torren Management LLC bought a new position in shares of BorgWarner in the fourth quarter valued at about $48,000. Olistico Wealth LLC bought a new position in shares of BorgWarner in the fourth quarter valued at about $50,000. Finally, Quent Capital LLC bought a new position in shares of BorgWarner in the third quarter valued at about $55,000. 95.67% of the stock is owned by institutional investors.

BorgWarner Price Performance

BorgWarner stock opened at $63.07 on Friday. The firm has a market capitalization of $12.94 billion, a P/E ratio of 37.32, a PEG ratio of 1.22 and a beta of 1.00. BorgWarner Inc. has a 1 year low of $31.83 and a 1 year high of $70.31. The business has a 50-day moving average of $55.35 and a 200-day moving average of $50.67. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.08. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The business had revenue of $3.53 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same period in the previous year, the firm earned $1.11 EPS. BorgWarner's quarterly revenue was up .5% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, equities analysts anticipate that BorgWarner Inc. will post 5.16 EPS for the current year.

BorgWarner Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be given a $0.17 dividend. The ex-dividend date is Monday, June 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. BorgWarner's payout ratio is currently 40.24%.

Key BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: JPMorgan raised its price target on BorgWarner to $75 and kept an overweight rating, signaling continued upside potential. Article Title
• Positive Sentiment: TD Cowen also increased its target on BWA, reinforcing the bullish analyst tone around the stock’s recent rebound and EV-related growth story. Article Title
• Positive Sentiment: BorgWarner’s latest earnings beat expectations on both EPS and revenue, and the company reaffirmed its full-year outlook, which supports the longer-term investment case.
• Neutral Sentiment: Recent coverage highlighted BorgWarner’s role in the EV supply chain and its rally’s link to broader index performance, which is more sentiment/context than a new catalyst. Article Title
• Negative Sentiment: New insider-sale disclosures from the CEO and multiple vice presidents are weighing on sentiment, especially after several recent transactions. Article Title
• Negative Sentiment: The broader equity selloff is hitting cyclical stocks harder than the market overall, which is pressuring BorgWarner even without fresh company-specific bad news.

Insiders Place Their Bets

In related news, VP Stefan Demmerle sold 20,000 shares of the business's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $59.26, for a total value of $1,185,200.00. Following the completion of the transaction, the vice president directly owned 213,746 shares in the company, valued at approximately $12,666,587.96. The trade was a 8.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Tania Wingfield sold 5,000 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $63.24, for a total value of $316,200.00. Following the completion of the transaction, the executive vice president owned 35,365 shares of the company's stock, valued at $2,236,482.60. This represents a 12.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 108,216 shares of company stock worth $6,552,706 in the last three months. 0.76% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

BWA has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of BorgWarner in a report on Monday, April 20th. UBS Group lifted their price target on BorgWarner from $56.00 to $61.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Morgan Stanley set a $60.00 price target on BorgWarner in a report on Thursday, February 12th. Bank of America initiated coverage on BorgWarner in a report on Wednesday, March 4th. They issued a "neutral" rating for the company. Finally, JPMorgan Chase & Co. lifted their price target on BorgWarner from $73.00 to $75.00 and gave the company an "overweight" rating in a report on Thursday. Seven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, BorgWarner presently has an average rating of "Moderate Buy" and an average price target of $67.64.

BorgWarner Profile

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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