United Services Automobile Association Invests $325,000 in BorgWarner Inc. $BWA

Key Points

• United Services Automobile Association has acquired a new stake in BorgWarner Inc. valued at approximately $325,000, purchasing 11,521 shares in the first quarter.
• Several institutional investors significantly increased their holdings in BorgWarner during the same period, with Principal Financial Group boosting its stake by 338.5%.
• BorgWarner has announced a dividend increase from $0.11 to $0.17 per share and initiated a stock buyback plan of up to $1.00 billion, indicating management's confidence in the company's valuation.

United Services Automobile Association bought a new position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 11,521 shares of the auto parts company's stock, valued at approximately $325,000.

A number of other institutional investors and hedge funds also recently made changes to their positions in BWA. Global X Japan Co. Ltd. raised its position in shares of BorgWarner by 133.4% during the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock worth $26,000 after acquiring an additional 523 shares during the last quarter. Manchester Capital Management LLC acquired a new stake in shares of BorgWarner during the first quarter worth $30,000. Meeder Asset Management Inc. grew its stake in shares of BorgWarner by 63.5% during the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock worth $40,000 after purchasing an additional 539 shares during the period. Allworth Financial LP grew its stake in shares of BorgWarner by 123.1% during the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock worth $41,000 after purchasing an additional 793 shares during the period. Finally, Brooklyn Investment Group grew its stake in shares of BorgWarner by 97.9% during the first quarter. Brooklyn Investment Group now owns 1,480 shares of the auto parts company's stock worth $42,000 after purchasing an additional 732 shares during the period. Institutional investors own 95.67% of the company's stock.

Insider Buying and Selling at BorgWarner

In related news, Director Alexis P. Michas sold 8,772 shares of the firm's stock in a transaction 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 sale, the director owned 78,903 shares of the company's stock, valued at $3,338,385.93. This trade represents a 10.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Isabelle Mckenzie sold 2,500 shares of the firm'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 directly owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This represents a 4.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 31,272 shares of company stock valued at $1,263,318. 0.45% of the stock is currently owned by corporate insiders.

BorgWarner Stock Performance

NYSE:BWA traded up $0.21 on Thursday, hitting $44.39. The company's stock had a trading volume of 433,750 shares, compared to its average volume of 2,795,209. The firm has a market capitalization of $9.60 billion, a P/E ratio of 47.25, a price-to-earnings-growth ratio of 1.43 and a beta of 1.09. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a one year low of $24.40 and a one year high of $44.70. The stock has a fifty day moving average of $39.89 and a two-hundred day moving average of $33.75.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The company 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%.The firm's quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter last year, the company earned $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Research analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current year.

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

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were given a dividend of $0.17 per share. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Tuesday, September 2nd. BorgWarner's dividend payout ratio (DPR) is currently 72.34%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on BWA shares. Evercore ISI lifted their price objective on BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. Robert W. Baird raised BorgWarner from a "neutral" rating to an "outperform" rating and boosted their target price for the company from $41.00 to $52.00 in a research note on Wednesday, September 3rd. Zacks Research raised BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 12th. JPMorgan Chase & Co. boosted their target price on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Finally, Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Two equities research 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 stock. Based on data from MarketBeat, the company has a consensus 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.