Wellington Management Group LLP Has $1.10 Million Stake in BorgWarner Inc. $BWA

Key Points

• Wellington Management Group LLP has significantly reduced its stake in BorgWarner Inc. by 58.2%, holding 38,216 shares worth approximately $1.1 million after selling 53,250 shares during the quarter.
• Various institutional investors are actively changing their positions, with Global X Japan Co. Ltd. increasing holdings by 133.4%, while 95.67% of BorgWarner's stock is owned by hedge funds and institutional investors.
• BorgWarner recently declared a quarterly dividend increase from $0.11 to $0.17 per share, reflecting a new annualized yield of 1.6%, in addition to initiating a $1 billion stock buyback program.

Wellington Management Group LLP cut its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 58.2% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 38,216 shares of the auto parts company's stock after selling 53,250 shares during the period. Wellington Management Group LLP's holdings in BorgWarner were worth $1,095,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. Global X Japan Co. Ltd. grew its stake in shares of BorgWarner by 133.4% during the 1st 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 in the last quarter. Manchester Capital Management LLC bought a new position in shares of BorgWarner in the first quarter valued at $30,000. LRI Investments LLC grew its stake in shares of BorgWarner by 1,515.0% in the fourth quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock valued at $31,000 after buying an additional 909 shares in the last quarter. Meeder Asset Management Inc. grew its stake in shares of BorgWarner by 63.5% in the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock valued at $40,000 after buying an additional 539 shares in the last quarter. Finally, Allworth Financial LP grew its stake in shares of BorgWarner by 123.1% in the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock valued at $41,000 after buying an additional 793 shares in the last quarter. 95.67% of the stock is owned by institutional investors.

Insider Transactions at BorgWarner

In other BorgWarner news, Director Alexis P. Michas sold 8,772 shares of the stock in a transaction that occurred 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 transaction, the director owned 78,903 shares in the company, valued at approximately $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Stefan Demmerle sold 5,000 shares of BorgWarner stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total transaction of $202,500.00. Following the sale, the vice president directly owned 229,040 shares in the company, valued at approximately $9,276,120. The trade was a 2.14% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 31,272 shares of company stock worth $1,263,318 over the last quarter. 0.45% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Bank of America raised their price target on BorgWarner from $35.00 to $41.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Baird R W raised BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Wednesday. Morgan Stanley lifted their price objective on BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 12th. Robert W. Baird raised BorgWarner from a "neutral" rating to an "outperform" rating and boosted their price target for the company from $41.00 to $52.00 in a research note on Wednesday. Finally, Evercore ISI boosted their price target on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research note on Monday, August 4th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $40.57.

BorgWarner Price Performance

NYSE BWA traded up $0.20 during trading hours on Friday, hitting $44.05. The company had a trading volume of 455,102 shares, compared to its average volume of 2,816,318. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $44.32. The firm has a 50 day simple moving average of $38.26 and a 200 day simple moving average of $32.88. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. The firm has a market capitalization of $9.53 billion, a price-to-earnings ratio of 46.84, a PEG ratio of 1.30 and a beta of 1.09.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The company had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter in the prior year, the company earned $1.19 earnings per share. The firm's revenue for the quarter was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities research analysts expect that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner announced that its Board of Directors has authorized a share repurchase program on Thursday, July 31st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to purchase up to 13.2% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its shares are undervalued.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.5%. The ex-dividend date is Tuesday, September 2nd. This is a boost from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio (DPR) is presently 72.34%.

About BorgWarner

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.