BorgWarner Inc. $BWA Shares Sold by Wellington Management Group LLP

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 decreased its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 58.2% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund 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 SEC filing.

A number of other hedge funds have also recently made changes to their positions in the business. New York State Teachers Retirement System lifted its position in BorgWarner by 3.8% in the 1st quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock valued at $6,280,000 after acquiring an additional 7,977 shares in the last quarter. Avantax Advisory Services Inc. increased its stake in shares of BorgWarner by 13.3% during the 1st quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock worth $380,000 after purchasing an additional 1,555 shares during the last quarter. Sage Rhino Capital LLC bought a new stake in shares of BorgWarner in the first quarter valued at $235,000. Brown Advisory Inc. bought a new stake in BorgWarner in the 1st quarter valued at about $522,000. Finally, Alpha Omega Wealth Management LLC boosted its holdings in shares of BorgWarner by 59.8% in the first quarter. Alpha Omega Wealth Management LLC now owns 25,190 shares of the auto parts company's stock worth $722,000 after acquiring an additional 9,427 shares during the period. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Trading Up 1.2%

BWA stock traded up $0.53 during mid-day trading on Thursday, reaching $43.52. 772,712 shares of the stock traded hands, compared to its average volume of 2,820,827. BorgWarner Inc. has a one year low of $24.40 and a one year high of $43.83. The business has a 50-day moving average price of $38.05 and a two-hundred day moving average price of $32.79. The stock has a market capitalization of $9.42 billion, a PE ratio of 46.30, a PEG ratio of 1.29 and a beta of 1.09. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02.

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

BorgWarner Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be paid a $0.17 dividend. This is a boost from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date is Tuesday, September 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 1.6%. BorgWarner's dividend payout ratio (DPR) is 46.81%.

BorgWarner declared that its board has approved a stock repurchase plan on Thursday, July 31st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the auto parts company to buy up to 13.2% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on BWA. Barclays reiterated an "overweight" rating and issued a $45.00 target price (up from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. UBS Group upped their target price on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. JPMorgan Chase & Co. upped their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a report on Monday, August 4th. Wells Fargo & Company lifted their price target on BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Finally, Evercore ISI increased their target price on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research note on Monday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, BorgWarner presently has a consensus rating of "Moderate Buy" and an average price target of $40.57.

Insider Activity

In other news, Director Alexis P. Michas sold 8,772 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the sale, the director directly owned 78,903 shares in the company, valued at $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the sale, the vice president directly owned 55,945 shares in the company, valued at approximately $2,238,359.45. The trade was a 4.28% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 31,272 shares of company stock valued at $1,263,318. Company insiders own 0.63% of the company's stock.

BorgWarner Company Profile

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.