SEB Asset Management AB Makes New $50.93 Million Investment in BorgWarner Inc. $BWA

Key Points

• SEB Asset Management AB opened a new position in BorgWarner during the first quarter, buying 938,638 shares valued at about $50.93 million. The stake represented roughly 0.46% of the company.
• BorgWarner reported better-than-expected Q1 earnings, posting $1.24 EPS on revenue of $3.53 billion versus analyst estimates of $1.16 EPS and $3.50 billion in revenue. The company also reiterated FY2026 guidance of 5.00-5.20 EPS.
• Wall Street remains generally positive on the stock, with nine Buy ratings and six Hold ratings, giving BorgWarner a consensus “Moderate Buy” and an average price target of $74.57. Several analysts recently raised targets, even as insiders sold shares in recent months.

SEB Asset Management AB bought a new position in BorgWarner Inc. (NYSE:BWA - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 938,638 shares of the auto parts company's stock, valued at approximately $50,930,000. SEB Asset Management AB owned approximately 0.46% of BorgWarner as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. Prosperity Bancshares Inc bought a new position in BorgWarner in the 4th quarter worth approximately $37,000. Sound Income Strategies LLC raised its holdings in BorgWarner by 9,888.9% during the 4th quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock valued at $42,000 after acquiring an additional 890 shares during the period. Torren Management LLC bought a new stake in BorgWarner during the 4th quarter valued at $48,000. Olistico Wealth LLC purchased a new position in shares of BorgWarner in the fourth quarter valued at $50,000. Finally, Cedar Mountain Advisors LLC bought a new stake in shares of BorgWarner during the 1st quarter valued at $55,000. Institutional investors own 95.67% of the company's stock.

BorgWarner Trading Down 0.5%

Shares of BWA stock opened at $62.44 on Friday. The company has a market capitalization of $12.81 billion, a PE ratio of 36.95, a price-to-earnings-growth ratio of 1.33 and a beta of 1.09. BorgWarner Inc. has a 52-week low of $34.27 and a 52-week high of $78.82. The business's fifty day moving average is $68.07 and its 200 day moving average is $58.36. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13.

BorgWarner (NYSE:BWA - Get Free Report) last posted its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 EPS for the quarter, topping the consensus estimate of $1.16 by $0.08. The business had revenue of $3.53 billion during the quarter, compared to analysts' expectations of $3.50 billion. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The firm's revenue was up .5% on a year-over-year basis. During the same period in the previous year, the business earned $1.11 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, equities research analysts anticipate that BorgWarner Inc. will post 5.16 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were issued a dividend of $0.17 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. BorgWarner's payout ratio is presently 40.24%.

Analyst Ratings Changes

A number of brokerages recently issued reports on BWA. JPMorgan Chase & Co. increased their price objective on BorgWarner from $73.00 to $75.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. The Goldman Sachs Group reiterated a "buy" rating and set a $84.00 price target on shares of BorgWarner in a research report on Thursday, June 11th. Deutsche Bank Aktiengesellschaft set a $81.00 price target on shares of BorgWarner in a report on Tuesday, April 21st. Wolfe Research restated an "outperform" rating and issued a $95.00 price objective on shares of BorgWarner in a research report on Wednesday, June 3rd. Finally, Morgan Stanley boosted their price objective on shares of BorgWarner from $60.00 to $67.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 27th. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, BorgWarner currently has a consensus rating of "Moderate Buy" and an average price target of $74.57.

Insiders Place Their Bets

In related news, CEO Joseph F. Fadool sold 29,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total value of $1,951,990.00. Following the transaction, the chief executive officer directly owned 405,964 shares in the company, valued at approximately $27,325,436.84. This represents a 6.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Stefan Demmerle sold 20,000 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $59.26, for a total transaction of $1,185,200.00. Following the completion of the sale, the vice president directly owned 213,746 shares in the company, valued at $12,666,587.96. This represents a 8.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 67,500 shares of company stock worth $4,310,115 over the last three months. Company insiders own 0.76% of the company's stock.

BorgWarner Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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