Ruffer LLP Grows Stake in BorgWarner Inc. $BWA

Key Points

• Ruffer LLP increased its stake in BorgWarner Inc. by 19.8% during the second quarter, now owning approximately 0.10% of the company valued at $7.15 million.
• BorgWarner recently reported an earnings per share (EPS) of $1.21 for the latest quarter, surpassing analysts' expectations, with revenue of $3.64 billion.
• The company raised its quarterly dividend to $0.17 per share and initiated a stock buyback program worth $1 billion, indicating confidence in its stock value.

Ruffer LLP raised its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 19.8% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 213,507 shares of the auto parts company's stock after purchasing an additional 35,355 shares during the quarter. Ruffer LLP owned about 0.10% of BorgWarner worth $7,148,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. New York State Teachers Retirement System raised its position in BorgWarner by 3.8% in the first quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock valued at $6,280,000 after purchasing an additional 7,977 shares during the period. Avantax Advisory Services Inc. raised its position in BorgWarner by 13.3% in the first quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock valued at $380,000 after purchasing an additional 1,555 shares during the period. Sage Rhino Capital LLC purchased a new position in BorgWarner in the first quarter valued at about $235,000. Brown Advisory Inc. purchased a new position in BorgWarner in the first quarter valued at about $522,000. Finally, Zurich Insurance Group Ltd FI purchased a new position in BorgWarner in the first quarter valued at about $1,223,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

BorgWarner Stock Performance

Shares of BWA stock opened at $43.33 on Thursday. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. The business has a 50 day moving average of $40.73 and a two-hundred day moving average of $34.26. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $44.70. The company has a market cap of $9.38 billion, a P/E ratio of 46.10, a PEG ratio of 1.44 and a beta of 1.09.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS 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 the consensus estimate of $3.56 billion. During the same period in the previous year, the firm posted $1.19 earnings per share. BorgWarner'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. As a group, analysts anticipate 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 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 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Tuesday, September 2nd. BorgWarner's payout ratio is presently 72.34%.

BorgWarner declared that its Board of Directors has initiated a stock buyback program on Thursday, July 31st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to repurchase up to 13.2% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

A number of analysts have recently issued reports on BWA shares. Barclays reaffirmed an "overweight" rating and set a $45.00 target price (up from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Wells Fargo & Company lifted their target price on BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a research report on Tuesday, September 9th. Robert W. Baird raised BorgWarner from a "neutral" rating to an "outperform" rating and lifted their target price for the stock from $41.00 to $52.00 in a research report on Wednesday, September 3rd. Zacks Research upgraded BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 12th. Finally, JPMorgan Chase & Co. lifted their price target on BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" 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 five have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $41.21.

Insider Transactions at BorgWarner

In other news, VP Isabelle Mckenzie sold 2,500 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the transaction, the vice president directly owned 55,945 shares in the company, valued at approximately $2,238,359.45. The trade was a 4.28% decrease in their ownership of the stock. 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 that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total value of $371,143.32. Following the transaction, the director owned 78,903 shares of the company's stock, valued at approximately $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 31,272 shares of company stock worth $1,263,318. Company insiders own 0.45% of the company's stock.

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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