Wellington Management Group LLP Cuts Stake in BorgWarner Inc. $BWA

Key Points

• Wellington Management cut its BorgWarner stake by 72.6% in the second quarter, selling 62,399 shares and retaining 23,561 shares valued at approximately $1.56 million. Institutional investors collectively own 95.67% of the company.
• BorgWarner reported quarterly earnings of $1.42 per share, exceeding estimates of $1.28, while revenue reached $3.65 billion. The company also authorized a $1 billion stock-repurchase plan covering up to 7.7% of its shares and maintained a $0.17 quarterly dividend.
• Analyst sentiment remains favorable, with nine Buy ratings and six Holds, producing a “Moderate Buy” consensus and an average price target of $78.86 versus the stock’s reported $66.69 price.

Wellington Management Group LLP lowered its position in BorgWarner Inc. (NYSE:BWA - Free Report) by 72.6% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 23,561 shares of the auto parts company's stock after selling 62,399 shares during the period. Wellington Management Group LLP's holdings in BorgWarner were worth $1,564,000 as of its most recent filing with the Securities & Exchange Commission.

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

BorgWarner Price Performance

BWA stock opened at $66.69 on Friday. BorgWarner Inc. has a 1 year low of $40.50 and a 1 year high of $78.82. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. The stock's 50 day moving average price is $65.30 and its 200 day moving average price is $62.42. The firm has a market cap of $13.58 billion, a P/E ratio of 33.35, a PEG ratio of 1.18 and a beta of 1.12.

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

BorgWarner Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Tuesday, September 1st. BorgWarner's dividend payout ratio (DPR) is currently 34.00%.

BorgWarner declared that its Board of Directors has authorized a stock buyback plan on Wednesday, August 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to repurchase up to 7.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages recently issued reports on BWA. Barclays lifted their price objective on BorgWarner from $83.00 to $85.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. Royal Bank Of Canada initiated coverage on BorgWarner in a report on Monday, August 31st. They issued an "outperform" rating and a $87.00 target price on the stock. Wolfe Research restated an "outperform" rating and issued a $95.00 price target on shares of BorgWarner in a research report on Wednesday, June 3rd. TD Cowen lifted their price target on BorgWarner from $67.00 to $68.00 and gave the stock a "hold" rating in a research note on Thursday, August 6th. Finally, Weiss Ratings upgraded shares of BorgWarner from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, June 29th. Nine analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $78.86.

Insider Activity at BorgWarner

In other news, Director Rajesh Kalathur purchased 7,407 shares of the stock in a transaction dated 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 completion of the acquisition, the director directly owned 7,407 shares in the company, valued at $500,639.13. This represents a ∞ increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Amy B. Kulikowski sold 2,900 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total transaction of $198,940.00. Following the completion of the transaction, the chief accounting officer directly owned 9,725 shares of the company's stock, valued at approximately $667,135. This represents a 22.97% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.76% of the stock is currently owned by corporate insiders.

About BorgWarner

BorgWarner Inc NYSE: BWA is a global automotive technology company headquartered in Auburn Hills, Michigan. The company develops and supplies propulsion and drivetrain systems for passenger vehicles, commercial vehicles and off-highway applications, serving automakers and other transportation manufacturers worldwide.

Its product portfolio includes turbochargers, transmission systems, dual-clutch modules, four-wheel-drive systems, emissions technologies, and components for hybrid and internal-combustion vehicles.

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