UniSuper Management Pty Ltd Sells 9,942 Shares of BorgWarner Inc. $BWA

Key Points

• UniSuper Management Pty Ltd reduced its stake in BorgWarner Inc. by 20.7%, selling 9,942 shares, leaving it with a total of 38,002 shares valued at approximately $1,089,000.
• BorgWarner announced a $1.00 billion stock buyback program that allows the company to repurchase up to 13.2% of its shares, a move indicative of the board's belief that the stock is undervalued.
• The firm increased its quarterly dividend to $0.17, reflecting an annualized payout of $0.68 and a dividend yield of 1.6%, up from the previous dividend of $0.11.

UniSuper Management Pty Ltd lowered its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 20.7% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 38,002 shares of the auto parts company's stock after selling 9,942 shares during the period. UniSuper Management Pty Ltd's holdings in BorgWarner were worth $1,089,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. Millennium Management LLC raised its holdings in shares of BorgWarner by 144.7% in the 1st quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company's stock valued at $57,579,000 after acquiring an additional 1,188,466 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of BorgWarner by 1.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 177,648 shares of the auto parts company's stock valued at $5,090,000 after buying an additional 1,760 shares in the last quarter. Gotham Asset Management LLC raised its holdings in shares of BorgWarner by 30.1% during the 1st quarter. Gotham Asset Management LLC now owns 489,941 shares of the auto parts company's stock valued at $14,037,000 after buying an additional 113,372 shares in the last quarter. Advisors Asset Management Inc. raised its holdings in shares of BorgWarner by 14.0% during the 1st quarter. Advisors Asset Management Inc. now owns 19,728 shares of the auto parts company's stock valued at $565,000 after buying an additional 2,420 shares in the last quarter. Finally, Federation des caisses Desjardins du Quebec raised its holdings in shares of BorgWarner by 6.3% during the 1st quarter. Federation des caisses Desjardins du Quebec now owns 74,260 shares of the auto parts company's stock valued at $2,128,000 after buying an additional 4,404 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

BorgWarner Trading Down 0.7%

Shares of BWA traded down $0.29 during mid-day trading on Tuesday, hitting $43.58. 2,165,468 shares of the company's stock traded hands, compared to its average volume of 2,192,353. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $44.45. The firm has a market capitalization of $9.43 billion, a P/E ratio of 46.36, a PEG ratio of 1.45 and a beta of 1.09. The business's 50-day moving average price is $39.71 and its 200-day moving average price is $33.68.

BorgWarner (NYSE:BWA - Get Free Report) last posted its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm had revenue of $3.64 billion for the quarter, compared to analysts' expectations of $3.56 billion. During the same period in the previous year, the firm earned $1.19 earnings per share. The business's 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. As a group, sell-side analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner announced that its board has authorized a stock 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 purchase up to 13.2% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend 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 presently 72.34%.

Insider Activity

In other news, Director Alexis P. Michas sold 8,772 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total transaction of $371,143.32. Following the transaction, the director directly owned 78,903 shares of the company's stock, valued at approximately $3,338,385.93. The trade was a 10.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total value of $589,650.00. Following the sale, the vice president owned 234,040 shares in the company, valued at $9,200,112.40. This represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 31,272 shares of company stock valued at $1,263,318. Company insiders own 0.63% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently weighed in on BWA. Zacks Research raised BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Friday. Robert W. Baird raised BorgWarner from a "neutral" rating to an "outperform" rating and raised their price objective for the company from $41.00 to $52.00 in a report on Wednesday, September 3rd. UBS Group raised their price objective on BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a report on Monday, July 14th. Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Finally, Evercore ISI lifted their price target on BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" 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.com, the company has an average rating of "Moderate Buy" and an average price target of $41.21.

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.