Sequoia Financial Advisors LLC Boosts Position in BorgWarner Inc. $BWA

Key Points

• Sequoia Financial Advisors LLC increased its stake in BorgWarner Inc. by 85.5% during the second quarter, holding a total of 15,511 shares valued at approximately $519,000.
• BorgWarner announced a $1 billion share buyback program aimed at repurchasing up to 13.2% of its shares, a move often indicating that the company's board believes shares are undervalued.
• Recent quarterly earnings showed $1.21 earnings per share, surpassing analysts' expectations, along with a revenue of $3.64 billion for the quarter.

Sequoia Financial Advisors LLC grew its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 85.5% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 15,511 shares of the auto parts company's stock after buying an additional 7,151 shares during the period. Sequoia Financial Advisors LLC's holdings in BorgWarner were worth $519,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Manchester Capital Management LLC purchased a new position in shares of BorgWarner during the first quarter valued at approximately $30,000. Trust Co. of Vermont increased its stake in shares of BorgWarner by 55,000.0% during the second quarter. Trust Co. of Vermont now owns 1,102 shares of the auto parts company's stock valued at $37,000 after buying an additional 1,100 shares during the period. Meeder Asset Management Inc. increased its stake in shares of BorgWarner by 63.5% during the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after buying an additional 539 shares during the period. Hilltop National Bank purchased a new position in shares of BorgWarner during the second quarter valued at approximately $47,000. Finally, Allworth Financial LP increased its stake in shares of BorgWarner by 123.1% during the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after buying an additional 793 shares during the period. 95.67% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at BorgWarner

In other news, VP Stefan Demmerle sold 15,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total value of $589,650.00. Following the completion of the sale, the vice president directly owned 234,040 shares of the company's stock, valued at $9,200,112.40. This trade represents a 6.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the firm'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 value of $100,025.00. Following the sale, the vice president directly owned 55,945 shares of the company's stock, valued at $2,238,359.45. This represents a 4.28% 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 valued at $1,263,318. Insiders own 0.45% of the company's stock.

BorgWarner Stock Performance

NYSE BWA opened at $43.00 on Tuesday. The firm has a market cap of $9.30 billion, a price-to-earnings ratio of 45.74, a price-to-earnings-growth ratio of 1.57 and a beta of 1.09. 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 price of $43.05 and a 200-day moving average price of $36.15. BorgWarner Inc. has a twelve month low of $24.40 and a twelve month high of $44.97.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The business's quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, equities research analysts predict that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner announced that its Board of Directors has initiated a share 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 shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were paid a dividend of $0.17 per share. The ex-dividend date of this dividend was Tuesday, September 2nd. 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 yield of 1.6%. BorgWarner's dividend payout ratio is currently 72.34%.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. JPMorgan Chase & Co. lifted their price target on BorgWarner from $45.00 to $53.00 and gave the company an "overweight" rating in a research report on Monday. Barclays boosted their target price on BorgWarner from $45.00 to $55.00 and gave the stock an "overweight" rating in a report on Friday, October 10th. Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of BorgWarner in a report on Wednesday, October 8th. Finally, Evercore ISI upped their price objective on BorgWarner from $42.00 to $50.00 and gave the company an "outperform" rating in a research report on Monday, October 13th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $45.21.

BorgWarner Company 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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