Steigerwald Gordon & Koch Inc. Cuts Stake in BorgWarner Inc. $BWA

Key Points

• Steigerwald Gordon & Koch Inc. decreased its stake in BorgWarner Inc. by 9.3%, owning 124,815 shares worth approximately $4.18 million after selling 12,749 shares in Q2.
• BorgWarner reported earnings of $1.21 per share, exceeding analysts' estimates, with a revenue increase of 1.0% year-over-year to $3.64 billion.
• The company has initiated a stock repurchase program allowing for the repurchase of up to $1 billion in shares, indicating the board's belief that the stock is undervalued.

Steigerwald Gordon & Koch Inc. decreased its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 9.3% in the second quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 124,815 shares of the auto parts company's stock after selling 12,749 shares during the period. Steigerwald Gordon & Koch Inc. owned approximately 0.06% of BorgWarner worth $4,179,000 as of its most recent SEC filing.

Other institutional investors also recently made changes to their positions in the company. Global X Japan Co. Ltd. boosted its stake in shares of BorgWarner by 133.4% in the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares in the last quarter. Manchester Capital Management LLC purchased a new stake in shares of BorgWarner in the 1st quarter valued at $30,000. Meeder Asset Management Inc. boosted its stake in shares of BorgWarner by 63.5% in the 1st quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after purchasing an additional 539 shares in the last quarter. Allworth Financial LP boosted its stake in shares of BorgWarner by 123.1% in the 1st quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after purchasing an additional 793 shares in the last quarter. Finally, Brooklyn Investment Group boosted its stake in shares of BorgWarner by 97.9% in the 1st quarter. Brooklyn Investment Group now owns 1,480 shares of the auto parts company's stock valued at $42,000 after purchasing an additional 732 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

BorgWarner Trading Down 1.4%

Shares of NYSE BWA opened at $43.58 on Tuesday. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $44.70. The stock has a market cap of $9.43 billion, a P/E ratio of 46.36, a price-to-earnings-growth ratio of 1.46 and a beta of 1.09. The firm has a 50-day moving average of $40.39 and a 200 day moving average of $34.13. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating 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 company had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.56 billion. During the same period last year, the company posted $1.19 EPS. BorgWarner's revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, sell-side analysts expect that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were issued a $0.17 dividend. 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. The ex-dividend date of this dividend was Tuesday, September 2nd. BorgWarner's dividend payout ratio is presently 72.34%.

BorgWarner declared that its Board of Directors has initiated a stock repurchase program on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board believes its shares are undervalued.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Wells Fargo & Company increased their price target on shares of BorgWarner from $46.00 to $50.00 and gave the company an "overweight" rating in a research report on Tuesday, September 9th. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Robert W. Baird raised shares of BorgWarner from a "neutral" rating to an "outperform" rating and increased their price target for the company from $41.00 to $52.00 in a research report on Wednesday, September 3rd. Baird R W raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 3rd. Finally, Piper Sandler increased their price target on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $41.21.

Insiders Place Their Bets

In other BorgWarner news, 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 completion of the transaction, the vice president directly owned 234,040 shares of the company's stock, valued at approximately $9,200,112.40. The trade was a 6.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total transaction of $371,143.32. Following the completion of the transaction, the director directly owned 78,903 shares of the company's stock, valued at $3,338,385.93. This trade represents a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 31,272 shares of company stock valued at $1,263,318. Insiders own 0.63% of the company's stock.

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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