Parkside Investments LLC Sells 17,898 Shares of BorgWarner Inc. $BWA

Key Points

• Parkside Investments LLC sold 17,898 shares of BorgWarner Inc., reducing its stake by 9.5% and now owns approximately 0.08% of the company, valued at $5.7 million.
• BorgWarner recently increased its quarterly dividend from $0.11 to $0.17, resulting in an annual yield of 1.6% and a dividend payout ratio of 72.34%.
• Several research analysts have upgraded their ratings on BorgWarner, with Piper Sandler raising the target price to $44.00 and Zacks Research changing its rating to "strong-buy."

Parkside Investments LLC reduced its position in BorgWarner Inc. (NYSE:BWA - Free Report) by 9.5% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 170,250 shares of the auto parts company's stock after selling 17,898 shares during the quarter. Parkside Investments LLC owned about 0.08% of BorgWarner worth $5,700,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of BWA. Global X Japan Co. Ltd. raised its stake in BorgWarner by 133.4% in the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares in the last quarter. Manchester Capital Management LLC purchased a new stake in BorgWarner in the first quarter valued at approximately $30,000. Meeder Asset Management Inc. raised its stake in BorgWarner by 63.5% in the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after purchasing an additional 539 shares in the last quarter. Allworth Financial LP raised its stake in BorgWarner by 123.1% in the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after purchasing an additional 793 shares in the last quarter. Finally, Brooklyn Investment Group raised its stake in BorgWarner by 97.9% in the first quarter. Brooklyn Investment Group now owns 1,480 shares of the auto parts company's stock valued at $42,000 after purchasing an additional 732 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors.

Insider Activity

In other news, VP Stefan Demmerle sold 5,000 shares of the business's stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total transaction of $202,500.00. Following the sale, the vice president owned 229,040 shares in the company, valued at approximately $9,276,120. The trade was a 2.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Alexis P. Michas sold 8,772 shares of the business's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total transaction of $371,143.32. Following the sale, the director owned 78,903 shares in the company, valued at approximately $3,338,385.93. This trade represents a 10.01% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 31,272 shares of company stock worth $1,263,318. Corporate insiders own 0.45% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Piper Sandler raised their target price on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Zacks Research raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 12th. Barclays reissued an "overweight" rating and set a $45.00 price target (up from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Wells Fargo & Company lifted their price target on shares of BorgWarner from $50.00 to $54.00 and gave the stock an "overweight" rating in a research note on Thursday, September 25th. Finally, Morgan Stanley lifted their price target on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 12th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, BorgWarner presently has a consensus rating of "Moderate Buy" and an average target price of $42.79.

BorgWarner Stock Down 0.6%

Shares of BorgWarner stock opened at $43.78 on Tuesday. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. BorgWarner Inc. has a 52-week low of $24.40 and a 52-week high of $44.70. The stock has a market capitalization of $9.47 billion, a price-to-earnings ratio of 46.57, a P/E/G ratio of 1.45 and a beta of 1.09. The company's 50 day moving average price is $41.24 and its 200-day moving average price is $34.65.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.15. The business had revenue of $3.64 billion for the quarter, compared to analysts' expectations of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities research analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner announced that its Board of Directors has approved a share buyback plan on Thursday, July 31st that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.6%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date was Tuesday, September 2nd. BorgWarner's dividend payout ratio (DPR) is presently 72.34%.

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.

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