Robeco Institutional Asset Management B.V. Sells 87,975 Shares of BorgWarner Inc. $BWA

Key Points

• Robeco cut its BorgWarner stake by 4.9% in the third quarter, selling 87,975 shares and retaining 1.72 million shares worth approximately $103.1 million. Institutional investors and hedge funds collectively own 95.67% of BWA.
• Analyst sentiment is favorable, with a “Moderate Buy” consensus from 14 analysts and an average price target of $79. Bank of America upgraded the stock to “Buy,” while JPMorgan and RBC set targets of $85 and $87, respectively.
• BorgWarner exceeded quarterly earnings expectations and authorized a $1 billion share-repurchase program, while maintaining a quarterly dividend of $0.17 per share, equivalent to a 1.2% annualized yield.

Robeco Institutional Asset Management B.V. reduced its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 4.9% during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,715,733 shares of the auto parts company's stock after selling 87,975 shares during the period. Robeco Institutional Asset Management B.V. owned 0.84% of BorgWarner worth $103,133,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. BlackRock Inc. acquired a new position in BorgWarner in the second quarter valued at about $1,678,187,000. William Blair Investment Management LLC bought a new position in BorgWarner during the second quarter worth about $251,305,000. Bank of America Corp DE acquired a new position in shares of BorgWarner during the 2nd quarter worth about $250,618,000. Swedbank AB grew its position in shares of BorgWarner by 5.4% during the 1st quarter. Swedbank AB now owns 2,933,151 shares of the auto parts company's stock worth $159,153,000 after buying an additional 150,144 shares during the period. Finally, Bank of New York Mellon Corp acquired a new position in shares of BorgWarner during the 2nd quarter worth about $112,292,000. 95.67% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, CAO Amy Kulikowski sold 2,900 shares of the business's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the sale, the chief accounting officer directly owned 9,725 shares in the company, valued at $667,135. The trade was a 22.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Michael Hanley sold 5,000 shares of the company's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $65.51, for a total value of $327,550.00. Following the transaction, the director directly owned 34,313 shares of the company's stock, valued at $2,247,844.63. This represents a 12.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.76% of the company's stock.

Analysts Set New Price Targets

A number of analysts recently weighed in on BWA shares. Bank of America upgraded shares of BorgWarner from a "neutral" rating to a "buy" rating and increased their price target for the company from $78.00 to $85.00 in a research report on Thursday, October 15th. Robert W. Baird set a $79.00 price objective on shares of BorgWarner in a report on Thursday, August 6th. JPMorgan Chase & Co. upped their target price on shares of BorgWarner from $75.00 to $85.00 and gave the company an "overweight" rating in a research note on Monday, August 10th. TD Cowen increased their target price on shares of BorgWarner from $67.00 to $68.00 and gave the stock a "hold" rating in a report on Thursday, August 6th. Finally, Royal Bank Of Canada began coverage on shares of BorgWarner in a report on Monday, August 31st. They issued an "outperform" rating and a $87.00 target price on the stock. Ten analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $79.00.

BorgWarner Stock Performance

Shares of BWA opened at $57.38 on Thursday. The firm has a market cap of $11.69 billion, a P/E ratio of 28.69, a PEG ratio of 0.86 and a beta of 1.16. BorgWarner Inc. has a twelve month low of $40.73 and a twelve month high of $78.82. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. The firm's 50 day moving average price is $63.13 and its two-hundred day moving average price is $63.79.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.28 by $0.14. The company had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The firm's revenue was up .3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, analysts forecast that BorgWarner Inc. will post 5.19 EPS for the current fiscal year.

BorgWarner announced that its board has initiated a share repurchase plan on Wednesday, August 5th that authorizes the company to buy back $1.00 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to buy up to 7.7% of its shares through open market purchases. Share repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

BorgWarner Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were paid a $0.17 dividend. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.2%. BorgWarner's dividend payout ratio (DPR) is currently 34.00%.

BorgWarner Company Profile

BorgWarner Inc NYSE: BWA is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.

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