Wedge Capital Management L L P NC Sells 39,815 Shares of BorgWarner Inc. $BWA

Key Points

• Wedge Capital Management sold 39,815 BorgWarner shares in Q4, a 13.9% reduction that left it with 246,291 shares (about 0.12% of the company) valued at roughly $11.10 million.
• Analysts have grown more bullish—Barclays and Goldman Sachs raised targets to $70 and $78 respectively—and the stock's consensus is a Moderate Buy with an average target of $63.77.
• BorgWarner beat Q4 expectations (EPS $1.35 vs. $1.16; revenue $3.57B), set FY2026 guidance of 5.00–5.20 EPS, pays a $0.17 quarterly dividend (1.3% yield), and insiders have sold about 78,083 shares in the past three months.

Wedge Capital Management L L P NC lowered its position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 13.9% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 246,291 shares of the auto parts company's stock after selling 39,815 shares during the period. Wedge Capital Management L L P NC owned about 0.12% of BorgWarner worth $11,098,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in the company. Exchange Traded Concepts LLC purchased a new position in shares of BorgWarner in the fourth quarter valued at about $265,000. Pallas Capital Advisors LLC raised its stake in shares of BorgWarner by 7.1% during the fourth quarter. Pallas Capital Advisors LLC now owns 27,741 shares of the auto parts company's stock valued at $1,250,000 after acquiring an additional 1,846 shares during the last quarter. Olistico Wealth LLC purchased a new stake in shares of BorgWarner during the fourth quarter worth about $50,000. SG Americas Securities LLC boosted its holdings in shares of BorgWarner by 417.4% during the fourth quarter. SG Americas Securities LLC now owns 89,636 shares of the auto parts company's stock worth $4,039,000 after purchasing an additional 72,312 shares during the period. Finally, Diversified Trust Co. grew its stake in shares of BorgWarner by 34.5% in the fourth quarter. Diversified Trust Co. now owns 24,241 shares of the auto parts company's stock worth $1,092,000 after purchasing an additional 6,218 shares during the last quarter. Institutional investors own 95.67% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have commented on BWA shares. Barclays upped their price target on BorgWarner from $55.00 to $70.00 and gave the company an "overweight" rating in a research report on Thursday, February 12th. Bank of America initiated coverage on BorgWarner in a research report on Wednesday, March 4th. They issued a "neutral" rating on the stock. The Goldman Sachs Group upped their target price on BorgWarner from $54.00 to $78.00 and gave the company a "buy" rating in a report on Thursday, February 12th. New Street Research set a $66.00 price target on BorgWarner in a research note on Thursday, February 12th. Finally, Evercore reiterated an "outperform" rating and issued a $75.00 price target on shares of BorgWarner in a report on Tuesday, February 17th. Eight research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, BorgWarner currently has an average rating of "Moderate Buy" and an average target price of $63.77.

Insiders Place Their Bets

In related news, VP Stefan Demmerle sold 2,500 shares of the firm's stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $53.03, for a total transaction of $132,575.00. Following the completion of the sale, the vice president owned 233,746 shares of the company's stock, valued at $12,395,550.38. This trade represents a 1.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Tonit M. Calaway sold 16,000 shares of the business's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $65.08, for a total transaction of $1,041,280.00. Following the completion of the transaction, the executive vice president owned 240,251 shares of the company's stock, valued at approximately $15,635,535.08. The trade was a 6.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 78,083 shares of company stock valued at $4,638,585. 0.45% of the stock is owned by company insiders.

BorgWarner Stock Down 0.9%

BWA stock opened at $54.25 on Friday. The business has a 50 day moving average of $53.86 and a 200 day moving average of $47.64. The firm has a market cap of $11.18 billion, a PE ratio of 43.40, a price-to-earnings-growth ratio of 1.10 and a beta of 1.04. BorgWarner Inc. has a twelve month low of $24.40 and a twelve month high of $70.08. The company has a quick ratio of 1.70, a current ratio of 2.07 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Wednesday, February 11th. The auto parts company reported $1.35 EPS for the quarter, topping analysts' consensus estimates of $1.16 by $0.19. BorgWarner had a return on equity of 17.89% and a net margin of 1.93%.The firm had revenue of $3.57 billion for the quarter, compared to analysts' expectations of $3.49 billion. During the same period in the prior year, the firm posted $1.01 earnings per share. The company's quarterly revenue was up 3.9% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, research analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 2nd were given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend was Monday, March 2nd. BorgWarner's dividend payout ratio is 54.40%.

About BorgWarner

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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