Victory Capital Management Inc. Reduces Stock Position in BorgWarner Inc. $BWA

Key Points

• Victory Capital Management cut its BorgWarner stake by 10.4% in the fourth quarter, selling 787,458 shares and leaving it with 6.81 million shares valued at about $307 million.
• Insider selling picked up as well: VP Isabelle McKenzie and CEO Joseph F. Fadool both reduced their holdings in May, and insiders sold 67,500 shares worth about $4.31 million over the last quarter.
• Analyst sentiment remains constructive, with BorgWarner holding a Moderate Buy consensus; the stock also beat quarterly EPS and revenue estimates and recently announced a $0.17 quarterly dividend.

Victory Capital Management Inc. reduced its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 10.4% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 6,812,487 shares of the auto parts company's stock after selling 787,458 shares during the period. Victory Capital Management Inc. owned 3.18% of BorgWarner worth $306,971,000 as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Sivia Capital Partners LLC purchased a new stake in BorgWarner in the second quarter worth about $339,000. Caprock Group LLC purchased a new stake in BorgWarner in the third quarter worth about $1,244,000. Ethos Capital Management Inc. purchased a new stake in BorgWarner in the fourth quarter worth about $1,433,000. Natixis Advisors LLC lifted its holdings in BorgWarner by 9.0% in the third quarter. Natixis Advisors LLC now owns 824,045 shares of the auto parts company's stock worth $36,225,000 after buying an additional 67,990 shares during the period. Finally, Northwestern Mutual Investment Management Company LLC purchased a new stake in BorgWarner in the fourth quarter worth about $2,157,000. 95.67% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, VP Isabelle Mckenzie sold 3,500 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $63.35, for a total value of $221,725.00. Following the completion of the transaction, the vice president directly owned 57,828 shares in the company, valued at $3,663,403.80. The trade was a 5.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Joseph F. Fadool sold 29,000 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $67.31, for a total transaction of $1,951,990.00. Following the completion of the transaction, the chief executive officer owned 405,964 shares of the company's stock, valued at approximately $27,325,436.84. The trade was a 6.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 67,500 shares of company stock valued at $4,310,115 in the last quarter. Insiders own 0.76% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Weiss Ratings restated a "hold (c)" rating on shares of BorgWarner in a report on Monday, April 20th. Deutsche Bank Aktiengesellschaft set a $81.00 target price on shares of BorgWarner in a report on Tuesday, April 21st. Sanford C. Bernstein upgraded shares of BorgWarner to a "buy" rating in a report on Wednesday. Evercore reiterated an "outperform" rating and set a $75.00 target price on shares of BorgWarner in a report on Tuesday, February 17th. Finally, Wolfe Research reiterated an "outperform" rating and set a $95.00 target price on shares of BorgWarner in a report on Wednesday, June 3rd. Nine research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, BorgWarner presently has a consensus rating of "Moderate Buy" and an average target price of $74.00.

BorgWarner Price Performance

BWA stock opened at $74.61 on Friday. The firm has a 50 day moving average price of $62.20 and a 200-day moving average price of $54.34. BorgWarner Inc. has a 52-week low of $32.24 and a 52-week high of $78.82. The firm has a market capitalization of $15.30 billion, a price-to-earnings ratio of 44.15, a PEG ratio of 1.43 and a beta of 1.07. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.08. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The firm had revenue of $3.53 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same period last year, the business earned $1.11 earnings per share. The business's revenue was up .5% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Equities research analysts forecast that BorgWarner Inc. will post 5.18 EPS for the current fiscal year.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Monday, June 1st. BorgWarner's payout ratio is presently 40.24%.

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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