Swedbank AB Has $85.66 Million Stock Holdings in BorgWarner Inc. $BWA

Key Points

• Swedbank AB increased its stake in BorgWarner Inc. by 23.3% during the second quarter, owning approximately 1.16% of the company, valued at $85,656,000.
• BorgWarner has announced a $1.00 billion share buyback plan, allowing the company to repurchase up to 13.2% of its shares, indicating management's belief that the stock is undervalued.
• The company recently raised its quarterly dividend from $0.11 to $0.17 per share, reflecting a positive change and a dividend yield of 1.5%.

Swedbank AB grew its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 23.3% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 2,558,425 shares of the auto parts company's stock after acquiring an additional 482,969 shares during the quarter. Swedbank AB owned 1.16% of BorgWarner worth $85,656,000 at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of the company. Dimensional Fund Advisors LP boosted its position in BorgWarner by 2.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock worth $331,429,000 after acquiring an additional 284,587 shares during the last quarter. LSV Asset Management boosted its position in BorgWarner by 36.7% during the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after acquiring an additional 1,580,935 shares during the last quarter. American Century Companies Inc. boosted its position in BorgWarner by 1.7% during the 1st quarter. American Century Companies Inc. now owns 3,716,576 shares of the auto parts company's stock worth $106,480,000 after acquiring an additional 60,382 shares during the last quarter. Millennium Management LLC boosted its position in BorgWarner by 144.7% during the 1st quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company's stock worth $57,579,000 after acquiring an additional 1,188,466 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its holdings in shares of BorgWarner by 11.1% in the 1st quarter. Bank of New York Mellon Corp now owns 1,875,161 shares of the auto parts company's stock valued at $53,723,000 after buying an additional 187,266 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

Insider Activity at BorgWarner

In related news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction dated 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 trade represents a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Stefan Demmerle sold 5,000 shares of the firm's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total value of $202,500.00. Following the completion of the sale, the vice president directly owned 229,040 shares in the company, valued at $9,276,120. This trade represents a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 31,272 shares of company stock valued at $1,263,318 over the last ninety days. 0.63% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on BWA shares. Robert W. Baird upgraded 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 note on Wednesday, September 3rd. Baird R W upgraded BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. Evercore ISI increased their price target on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research note on Monday, August 4th. UBS Group increased their price target on BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Finally, JPMorgan Chase & Co. increased their price target on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $41.21.

BorgWarner Price Performance

Shares of BWA traded down $0.42 during trading hours on Monday, hitting $43.80. 330,620 shares of the company were exchanged, compared to its average volume of 2,800,928. The company has a market cap of $9.48 billion, a price-to-earnings ratio of 46.58, a P/E/G ratio of 1.46 and a beta of 1.09. BorgWarner Inc. has a fifty-two week low of $24.40 and a fifty-two week high of $44.70. 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 firm's fifty day moving average is $40.24 and its 200 day moving average is $34.04.

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, beating the consensus estimate of $1.06 by $0.15. The business had revenue of $3.64 billion for 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%.BorgWarner's revenue was up 1.0% compared to the same quarter last year. During the same period last year, the firm posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

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

BorgWarner Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were paid 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 payout ratio is 72.34%.

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.