Russell Investments Group Ltd. Purchases 74,294 Shares of BorgWarner Inc. $BWA

Key Points

• Russell Investments Group Ltd. increased its stake in BorgWarner Inc. by 26.2%, acquiring an additional 74,294 shares, bringing their total holdings to 358,011 shares valued at $10.26 million.
• Equity research analysts have raised their price targets for BorgWarner, with predictions ranging from $38.00 to $46.00, and the stock currently has an average rating of "Moderate Buy".
• BorgWarner announced a quarterly dividend increase to $0.17 and launched a $1 billion buyback program, suggesting management's belief in the stock's undervaluation.

Russell Investments Group Ltd. increased its stake in BorgWarner Inc. (NYSE:BWA - Free Report) by 26.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 358,011 shares of the auto parts company's stock after purchasing an additional 74,294 shares during the quarter. Russell Investments Group Ltd. owned about 0.16% of BorgWarner worth $10,256,000 at the end of the most recent quarter.

Other institutional investors have also bought and sold shares of the company. Global X Japan Co. Ltd. lifted its holdings in BorgWarner by 133.4% in the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock worth $26,000 after purchasing an additional 523 shares during the period. LRI Investments LLC lifted its holdings in BorgWarner by 1,515.0% in the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock worth $31,000 after purchasing an additional 909 shares during the period. Manchester Capital Management LLC acquired a new stake in BorgWarner in the first quarter worth about $30,000. Meeder Asset Management Inc. lifted its holdings in BorgWarner by 63.5% in the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock worth $40,000 after purchasing an additional 539 shares during the period. Finally, Allworth Financial LP lifted its holdings in BorgWarner by 123.1% in the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock worth $41,000 after purchasing an additional 793 shares during the period. Institutional investors and hedge funds own 95.67% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on BWA shares. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. JPMorgan Chase & Co. boosted their price target on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research report on Monday, August 4th. Morgan Stanley boosted their price target on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Piper Sandler boosted their price target on shares of BorgWarner from $37.00 to $44.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Finally, Barclays reiterated an "overweight" rating and issued a $45.00 price target (up from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Ten investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, BorgWarner has an average rating of "Moderate Buy" and a consensus price target of $39.64.

Insider Activity

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the transaction, the vice president owned 55,945 shares of the company's stock, valued at $2,238,359.45. The trade was a 4.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total value of $589,650.00. Following the transaction, the vice president directly owned 234,040 shares in the company, valued at approximately $9,200,112.40. This trade represents a 6.02% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 22,500 shares of company stock worth $892,175. Company insiders own 0.45% of the company's stock.

BorgWarner Stock Down 1.0%

NYSE:BWA traded down $0.4040 on Thursday, hitting $41.8160. 2,369,502 shares of the company's stock traded hands, compared to its average volume of 2,382,833. 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 1 year low of $24.40 and a 1 year high of $42.44. The firm has a 50-day moving average price of $36.26 and a 200-day moving average price of $31.98. The company has a market cap of $9.05 billion, a PE ratio of 44.49, a price-to-earnings-growth ratio of 1.28 and a beta of 1.10.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts' expectations of $3.56 billion. During the same quarter in the previous year, the business posted $1.19 EPS. The business's revenue for the quarter was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities analysts anticipate that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.6%. This is a boost from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is 46.81%.

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

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.