Ruffer LLP Acquires Shares of 178,152 BorgWarner Inc. (NYSE:BWA)

Key Points

• Ruffer LLP acquired 178,152 shares of BorgWarner Inc., valued at approximately $5.1 million, representing about 0.08% ownership of the company.
• BorgWarner announced a $1 billion share buyback plan to repurchase up to 13.2% of its stock, reflecting confidence in the company's valuation.
• The company declared an increase in its quarterly dividend from $0.11 to $0.17, representing a 1.8% dividend yield with an annualized payout of $0.68.

Ruffer LLP bought a new position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 178,152 shares of the auto parts company's stock, valued at approximately $5,104,000. Ruffer LLP owned about 0.08% of BorgWarner at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Norinchukin Bank The raised its holdings in shares of BorgWarner by 4.4% during the fourth quarter. Norinchukin Bank The now owns 9,501 shares of the auto parts company's stock worth $302,000 after purchasing an additional 402 shares during the last quarter. Farther Finance Advisors LLC raised its stake in shares of BorgWarner by 26.1% during the 1st quarter. Farther Finance Advisors LLC now owns 1,965 shares of the auto parts company's stock valued at $56,000 after buying an additional 407 shares during the last quarter. Beverly Hills Private Wealth LLC boosted its stake in shares of BorgWarner by 5.7% in the first quarter. Beverly Hills Private Wealth LLC now owns 7,852 shares of the auto parts company's stock worth $225,000 after buying an additional 421 shares during the last quarter. Janus Henderson Group PLC grew its holdings in BorgWarner by 0.4% during the fourth quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company's stock worth $3,580,000 after acquiring an additional 501 shares during the period. Finally, Global X Japan Co. Ltd. raised its position in 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 acquiring an additional 523 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

BorgWarner Trading Down 1.2%

BWA stock traded down $0.45 during trading on Tuesday, reaching $37.83. 2,596,960 shares of the stock were exchanged, compared to its average volume of 1,994,730. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The firm has a market capitalization of $8.19 billion, a price-to-earnings ratio of 40.24, a P/E/G ratio of 1.14 and a beta of 1.10. The business has a 50 day moving average price of $34.45 and a 200-day moving average price of $31.30. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $38.50.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating the consensus estimate of $1.06 by $0.15. The firm 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%. The business'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 company earned $1.19 EPS. On average, research analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.17 per share. This is a boost from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.8%. BorgWarner's dividend payout ratio (DPR) is currently 46.81%.

BorgWarner announced that its board has initiated a share repurchase plan on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to buy up to 13.2% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

Several research firms have recently weighed in on BWA. Robert W. Baird lifted their target price on shares of BorgWarner from $32.00 to $39.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. JPMorgan Chase & Co. upped their target price on BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research note on Monday. UBS Group lifted their price target on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Finally, Guggenheim reduced their price objective on shares of BorgWarner from $38.00 to $33.00 and set a "buy" rating for the company in a research report on Tuesday, April 22nd. Six equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $39.50.

Insider Transactions at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 5,000 shares of the business's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $33.25, for a total transaction of $166,250.00. Following the sale, the vice president directly owned 63,445 shares in the company, valued at $2,109,546.25. This represents a 7.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Tonit M. Calaway sold 27,736 shares of the firm's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $32.83, for a total transaction of $910,572.88. Following the completion of the transaction, the executive vice president directly owned 214,521 shares of the company's stock, valued at approximately $7,042,724.43. The trade was a 11.45% decrease in their position. The disclosure for this sale can be found here. 0.63% of the stock is owned by company insiders.

About BorgWarner

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.