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 lessened its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 20.7% during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm 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 have also recently made changes to their positions in the business. Global X Japan Co. Ltd. lifted its position in BorgWarner by 133.4% during the first 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. LRI Investments LLC lifted its position in BorgWarner by 1,515.0% during the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock valued at $31,000 after purchasing an additional 909 shares in the last quarter. Manchester Capital Management LLC purchased a new position in BorgWarner during the first quarter valued at $30,000. Meeder Asset Management Inc. lifted its position in 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 purchasing an additional 539 shares in the last quarter. Finally, Allworth Financial LP lifted its position in 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 purchasing an additional 793 shares in the last quarter. Institutional investors own 95.67% of the company's stock.

BorgWarner Trading Down 1.2%

Shares of BWA stock opened at $43.17 on Thursday. BorgWarner Inc. has a 12-month low of $24.40 and a 12-month high of $44.45. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The stock's 50-day moving average price is $39.02 and its 200-day moving average price is $33.27. The stock has a market capitalization of $9.34 billion, a price-to-earnings ratio of 45.92, a price-to-earnings-growth ratio of 1.32 and a beta of 1.09.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, topping 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 posted $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. 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 authorized a stock buyback 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 purchase up to 13.2% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis 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 is Tuesday, September 2nd. BorgWarner's payout ratio is 72.34%.

Insider Activity at BorgWarner

In related news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the transaction, the vice president directly owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Stefan Demmerle sold 15,000 shares of the firm's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total transaction 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. This trade represents a 6.02% 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. 0.45% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the company. Baird R W upgraded BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 3rd. Evercore ISI lifted their target price on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research report on Monday, August 4th. JPMorgan Chase & Co. raised their price target on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a report on Monday, August 4th. Robert W. Baird raised BorgWarner from a "neutral" rating to an "outperform" rating and raised their price target for the company from $41.00 to $52.00 in a report on Wednesday, September 3rd. Finally, Barclays reissued an "overweight" rating and set a $45.00 price target (up from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. One research analyst has 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. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $41.21.

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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