PFG Investments LLC Invests $249,000 in BorgWarner Inc. $BWA

Key Points

• PFG Investments LLC has invested approximately $249,000 in BorgWarner Inc., acquiring 7,428 shares during the second quarter.
• BorgWarner has increased its quarterly dividend from $0.11 to $0.17, representing an annualized dividend of $0.68 with a yield of 1.5%.
• Analysts have a consensus rating of "Moderate Buy" for BorgWarner, with a target price averaging $42.79, reflecting confidence in the company's performance.

PFG Investments LLC purchased a new position in BorgWarner Inc. (NYSE:BWA - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 7,428 shares of the auto parts company's stock, valued at approximately $249,000.

Several other hedge funds have also recently modified their holdings of BWA. GAMMA Investing LLC lifted its position in shares of BorgWarner by 1,822.6% in the 1st quarter. GAMMA Investing LLC now owns 99,244 shares of the auto parts company's stock worth $2,843,000 after purchasing an additional 94,082 shares during the period. Rhumbline Advisers lifted its position in BorgWarner by 39.0% during the first quarter. Rhumbline Advisers now owns 556,066 shares of the auto parts company's stock valued at $15,931,000 after acquiring an additional 155,912 shares during the last quarter. UMB Bank n.a. lifted its position in BorgWarner by 97.2% during the first quarter. UMB Bank n.a. now owns 1,757 shares of the auto parts company's stock valued at $50,000 after acquiring an additional 866 shares during the last quarter. Arbor Wealth Advisors LLC lifted its position in BorgWarner by 1.1% during the first quarter. Arbor Wealth Advisors LLC now owns 108,607 shares of the auto parts company's stock valued at $3,112,000 after acquiring an additional 1,196 shares during the last quarter. Finally, CHICAGO TRUST Co NA lifted its position in BorgWarner by 26.4% during the first quarter. CHICAGO TRUST Co NA now owns 51,381 shares of the auto parts company's stock valued at $1,472,000 after acquiring an additional 10,716 shares during the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently commented on BWA. Weiss Ratings reissued a "hold (c)" rating on shares of BorgWarner in a research report on Saturday, September 27th. UBS Group increased their target price 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. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Baird R W raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 3rd. Finally, Evercore ISI upped their price target on shares of BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research note on Monday, August 4th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $42.79.

BorgWarner Trading Up 0.8%

Shares of BorgWarner stock opened at $44.77 on Monday. 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 12-month low of $24.40 and a 12-month high of $44.90. The firm has a market capitalization of $9.69 billion, a price-to-earnings ratio of 47.62, a PEG ratio of 1.47 and a beta of 1.09. The firm's 50 day simple moving average is $41.91 and its two-hundred day simple moving average is $35.09.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings results 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. The business had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. BorgWarner's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Analysts predict that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were paid a $0.17 dividend. The ex-dividend date was Tuesday, September 2nd. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.5%. BorgWarner's dividend payout ratio (DPR) is currently 72.34%.

BorgWarner announced that its board has approved a stock buyback plan on Thursday, July 31st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Insider Transactions at BorgWarner

In other news, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the sale, the vice president owned 55,945 shares in the company, valued at $2,238,359.45. This represents a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Alexis P. Michas sold 8,772 shares of the stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total transaction of $371,143.32. Following the completion of the sale, the director owned 78,903 shares in the company, valued at $3,338,385.93. The trade was a 10.01% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 31,272 shares of company stock worth $1,263,318 over the last 90 days. 0.45% of the stock is currently owned by company insiders.

BorgWarner Company 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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