QRG Capital Management Inc. Buys 13,908 Shares of BorgWarner Inc. $BWA

Key Points

• QRG Capital Management Inc. increased its stake in BorgWarner Inc. by 22.7%, acquiring an additional 13,908 shares in the second quarter, bringing its total holdings to 75,234 shares valued at approximately $2.52 million.
• BorgWarner recently reported $1.21 earnings per share for the quarter, exceeding analysts' estimates, while also announcing a $1.00 billion stock repurchase plan to buy back 13.2% of its stock.
• The company increased its quarterly dividend from $0.11 to $0.17 per share, with an annualized dividend of $0.68, yielding 1.6% and a payout ratio of 72.34%.

QRG Capital Management Inc. raised its position in BorgWarner Inc. (NYSE:BWA - Free Report) by 22.7% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 75,234 shares of the auto parts company's stock after acquiring an additional 13,908 shares during the period. QRG Capital Management Inc.'s holdings in BorgWarner were worth $2,519,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in BWA. Global X Japan Co. Ltd. increased its position in shares of BorgWarner by 133.4% during 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 during the period. Manchester Capital Management LLC acquired a new stake in BorgWarner during the first quarter worth $30,000. Trust Co. of Vermont boosted its stake in BorgWarner by 55,000.0% during the second quarter. Trust Co. of Vermont now owns 1,102 shares of the auto parts company's stock worth $37,000 after buying an additional 1,100 shares in the last quarter. Meeder Asset Management Inc. lifted its holdings in shares of BorgWarner by 63.5% during the 1st quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock worth $40,000 after acquiring an additional 539 shares during the period. Finally, Allworth Financial LP lifted its holdings in shares of BorgWarner by 123.1% during the 1st quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock worth $41,000 after acquiring an additional 793 shares during the period. Institutional investors and hedge funds own 95.67% of the company's stock.

BorgWarner Trading Down 4.7%

Shares of BWA opened at $42.34 on Wednesday. The stock has a fifty day moving average price of $42.23 and a two-hundred day moving average price of $35.25. 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 $44.97. The company has a market cap of $9.16 billion, a price-to-earnings ratio of 45.04, a PEG ratio of 1.46 and a beta of 1.09.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The company had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. During the same period last year, the company posted $1.19 earnings per share. The firm's quarterly 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. Analysts predict that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

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

BorgWarner Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were given a dividend of $0.17 per share. The ex-dividend date was Tuesday, September 2nd. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. BorgWarner's dividend payout ratio (DPR) is currently 72.34%.

Insider Transactions at BorgWarner

In other news, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the sale, the vice president directly owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Stefan Demmerle sold 15,000 shares of BorgWarner 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 sale, the vice president directly owned 234,040 shares of the company's stock, valued at $9,200,112.40. This trade represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 31,272 shares of company stock worth $1,263,318. Corporate insiders own 0.63% of the company's stock.

Wall Street Analysts Forecast Growth

BWA has been the subject of several recent research reports. Evercore ISI increased their price target on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research report on Monday, August 4th. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Piper Sandler boosted their price target on BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. The Goldman Sachs Group boosted their price target on BorgWarner from $45.00 to $52.00 and gave the company a "buy" rating in a research note on Monday, September 29th. Finally, Baird R W raised BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 3rd. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $43.36.

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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