State of Alaska Department of Revenue Raises Stock Holdings in BorgWarner Inc. $BWA

Key Points

• The State of Alaska Department of Revenue increased its stake in BorgWarner Inc. by 6.5%, owning 157,857 shares valued at approximately $5.28 million as of the latest SEC filing.
• Wall Street analysts have given BorgWarner various ratings; UBS upgraded its price target from $35.00 to $38.00, while Barclays raised its target from $42.00 to $45.00.
• BorgWarner declared a quarterly dividend increase from $0.11 to $0.17 per share, along with an authorized $1 billion stock repurchase program reflecting management's confidence in the company's stock value.

State of Alaska Department of Revenue boosted its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 6.5% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 157,857 shares of the auto parts company's stock after purchasing an additional 9,687 shares during the quarter. State of Alaska Department of Revenue owned about 0.07% of BorgWarner worth $5,283,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of BWA. New York State Teachers Retirement System raised its position in BorgWarner by 3.8% during 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 holdings in BorgWarner by 13.3% during the 1st quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock valued at $380,000 after buying an additional 1,555 shares during the period. Sage Rhino Capital LLC purchased a new stake in BorgWarner during the 1st quarter valued at $235,000. Brown Advisory Inc. purchased a new stake in BorgWarner during the 1st quarter valued at $522,000. Finally, Zurich Insurance Group Ltd FI purchased a new stake in shares of BorgWarner in the first quarter valued at $1,223,000. Hedge funds and other institutional investors own 95.67% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on BWA. UBS Group increased their price objective on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Zacks Research upgraded BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Friday, September 12th. Barclays reiterated an "overweight" rating and issued a $45.00 price target (up from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Finally, Bank of America lowered BorgWarner from a "buy" rating to a "neutral" rating and increased their target price for the stock from $41.00 to $46.00 in a research note on Wednesday, September 10th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $41.50.

Insider Buying and Selling

In related news, VP Stefan Demmerle sold 15,000 shares of the business's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total transaction of $589,650.00. Following the transaction, the vice president directly owned 234,040 shares in the company, valued at $9,200,112.40. The trade was a 6.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the business's stock in a transaction 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 transaction, the vice president owned 55,945 shares in the company, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 31,272 shares of company stock worth $1,263,318 in the last ninety days. 0.63% of the stock is owned by insiders.

BorgWarner Stock Performance

Shares of BorgWarner stock opened at $44.10 on Monday. The company has a market capitalization of $9.54 billion, a PE ratio of 46.92, a P/E/G ratio of 1.45 and a beta of 1.09. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. The company has a 50-day simple moving average of $41.07 and a two-hundred day simple moving average of $34.54. BorgWarner Inc. has a one year low of $24.40 and a one year high of $44.70.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter in the previous year, the firm earned $1.19 EPS. The company'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. Research analysts expect that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were issued a $0.17 dividend. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend was Tuesday, September 2nd. BorgWarner's dividend payout ratio is presently 72.34%.

BorgWarner announced that its board has authorized a stock repurchase program on Thursday, July 31st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to buy up to 13.2% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

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.

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