VIRGINIA RETIREMENT SYSTEMS ET Al Invests $5.66 Million in BorgWarner Inc. $BWA

Key Points

• Virginia Retirement Systems purchased 85,300 BorgWarner shares in the second quarter, valued at approximately $5.66 million. Institutional investors collectively own 95.67% of the company.
• Analysts maintain a favorable outlook, with nine Buy ratings and six Hold ratings, resulting in a “Moderate Buy” consensus and an average price target of $76.67.
• BorgWarner exceeded quarterly earnings and revenue estimates, declared a $0.17-per-share dividend, and authorized a $1 billion share-repurchase plan covering up to 7.7% of outstanding shares.

VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in BorgWarner Inc. (NYSE:BWA - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 85,300 shares of the auto parts company's stock, valued at approximately $5,664,000.

Several other hedge funds have also bought and sold shares of BWA. Clearstead Trust LLC purchased a new stake in BorgWarner in the second quarter worth about $28,000. Prosperity Bancshares Inc bought a new stake in shares of BorgWarner in the 4th quarter worth approximately $37,000. Ceredex Value Advisors LLC bought a new stake in shares of BorgWarner in the 2nd quarter worth approximately $40,000. Fiduciary Financial Advisors purchased a new stake in shares of BorgWarner in the 2nd quarter worth approximately $49,000. Finally, Cedar Mountain Advisors LLC bought a new position in BorgWarner during the 1st quarter valued at approximately $55,000. Institutional investors own 95.67% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on BWA shares. Weiss Ratings upgraded BorgWarner from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, June 29th. Sanford C. Bernstein raised shares of BorgWarner to a "buy" rating in a research report on Wednesday, June 10th. Wolfe Research restated an "outperform" rating and set a $95.00 price objective on shares of BorgWarner in a research note on Wednesday, June 3rd. Wall Street Zen raised shares of BorgWarner from a "hold" rating to a "buy" rating in a report on Saturday, June 27th. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 target price on shares of BorgWarner in a research note on Thursday, August 6th. Nine equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, BorgWarner presently has an average rating of "Moderate Buy" and an average target price of $76.67.

BorgWarner Trading Down 1.9%

BorgWarner stock opened at $66.24 on Wednesday. BorgWarner Inc. has a one year low of $40.50 and a one year high of $78.82. The business's fifty day moving average is $65.17 and its 200 day moving average is $62.30. The stock has a market capitalization of $13.49 billion, a PE ratio of 33.12, a price-to-earnings-growth ratio of 1.21 and a beta of 1.12. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, topping analysts' consensus estimates of $1.28 by $0.14. The business had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.58 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.BorgWarner's revenue was up .3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.21 EPS. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, sell-side analysts predict that BorgWarner Inc. will post 5.2 EPS for the current year.

BorgWarner Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Tuesday, September 1st. BorgWarner's payout ratio is presently 34.00%.

BorgWarner declared that its board has authorized a share repurchase plan on Wednesday, August 5th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the auto parts company to reacquire up to 7.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Insider Activity at BorgWarner

In related news, Director Rajesh Kalathur bought 7,407 shares of the firm's stock in a transaction on Wednesday, August 19th. The stock was acquired at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the purchase, the director owned 7,407 shares in the company, valued at approximately $500,639.13. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Amy B. Kulikowski sold 2,900 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the completion of the transaction, the chief accounting officer owned 9,725 shares in the company, valued at approximately $667,135. This trade represents a 22.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.76% of the stock is owned by insiders.

BorgWarner 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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