Pacer Advisors Inc. Decreases Stake in BorgWarner Inc. $BWA

Key Points

• Pacer Advisors cut its BorgWarner stake by 17.6% in the fourth quarter, selling 237,452 shares and leaving it with 1,110,894 shares valued at about $50.1 million.
• Several institutional investors and insiders also adjusted their positions, while insiders sold 67,500 shares over the last three months; meanwhile, hedge funds and other institutions still own 95.67% of the stock.
• BorgWarner reported better-than-expected quarterly earnings of $1.24 per share on revenue of $3.53 billion, and analysts currently rate the stock a Moderate Buy with an average target price of $74.00.

Pacer Advisors Inc. reduced its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 17.6% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,110,894 shares of the auto parts company's stock after selling 237,452 shares during the quarter. Pacer Advisors Inc. owned 0.54% of BorgWarner worth $50,057,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently modified their holdings of the company. Prosperity Bancshares Inc purchased a new position in BorgWarner in the 4th quarter worth about $37,000. Sound Income Strategies LLC boosted its holdings in shares of BorgWarner by 9,888.9% during the 4th quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock valued at $42,000 after acquiring an additional 890 shares during the last quarter. Torren Management LLC bought a new stake in shares of BorgWarner in the fourth quarter worth approximately $48,000. Olistico Wealth LLC bought a new stake in shares of BorgWarner in the fourth quarter worth approximately $50,000. Finally, UMB Bank n.a. raised its holdings in shares of BorgWarner by 28.1% during the fourth quarter. UMB Bank n.a. now owns 1,709 shares of the auto parts company's stock valued at $77,000 after purchasing an additional 375 shares during the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on BWA. Wolfe Research restated an "outperform" rating and issued a $95.00 target price on shares of BorgWarner in a report on Wednesday, June 3rd. Wall Street Zen lowered shares of BorgWarner from a "buy" rating to a "hold" rating in a research note on Saturday, June 6th. Deutsche Bank Aktiengesellschaft set a $81.00 price target on BorgWarner in a report on Tuesday, April 21st. TD Cowen lifted their price objective on BorgWarner from $66.00 to $67.00 and gave the stock a "hold" rating in a report on Thursday, May 7th. Finally, Barclays upped their price objective on BorgWarner from $70.00 to $75.00 and gave the company an "overweight" rating in a research report on Thursday, May 7th. Nine research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $74.00.

Insider Buying and Selling

In other news, VP Isabelle Mckenzie sold 3,500 shares of BorgWarner stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $63.35, for a total transaction of $221,725.00. Following the transaction, the vice president directly owned 57,828 shares of the company's stock, valued at $3,663,403.80. The trade was a 5.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Stefan Demmerle sold 20,000 shares of the business's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $59.26, for a total value of $1,185,200.00. Following the transaction, the vice president owned 213,746 shares of the company's stock, valued at approximately $12,666,587.96. This trade represents a 8.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 67,500 shares of company stock valued at $4,310,115 over the last three months. 0.76% of the stock is currently owned by company insiders.

BorgWarner Stock Performance

Shares of NYSE BWA opened at $71.96 on Friday. The firm has a 50 day moving average of $64.08 and a 200 day moving average of $55.36. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69. The firm has a market capitalization of $14.76 billion, a price-to-earnings ratio of 42.58, a price-to-earnings-growth ratio of 1.38 and a beta of 1.07. BorgWarner Inc. has a 12-month low of $32.24 and a 12-month high of $78.82.

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

BorgWarner Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a dividend of $0.17 per share. The ex-dividend date was Monday, June 1st. This represents a $0.68 annualized dividend and a yield of 0.9%. BorgWarner's payout ratio is 40.24%.

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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