Woodline Partners LP Buys 543,790 Shares of BorgWarner Inc. $BWA

Key Points

• Woodline Partners LP significantly expanded its stake in BorgWarner Inc. by 4,140.3%, acquiring 543,790 shares to bring its total ownership to 556,924 shares, valued at approximately $15.96 million.
• The company revealed a stock repurchase plan to buy back up to $1 billion of its shares, indicating the board's belief that the stock is currently undervalued.
• BorgWarner announced a quarterly dividend increase, raising it from $0.11 to $0.17 per share, which translates to an annualized yield of 1.6%.

Woodline Partners LP increased its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 4,140.3% in the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 556,924 shares of the auto parts company's stock after purchasing an additional 543,790 shares during the quarter. Woodline Partners LP owned 0.25% of BorgWarner worth $15,956,000 as of its most recent filing with the SEC.

Other large investors have also bought and sold shares of the company. Global X Japan Co. Ltd. increased its stake in 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 purchasing an additional 523 shares in the last quarter. LRI Investments LLC increased its stake in BorgWarner by 1,515.0% during the 4th quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock worth $31,000 after purchasing an additional 909 shares in the last quarter. Manchester Capital Management LLC bought a new stake in BorgWarner during the 1st quarter worth approximately $30,000. Meeder Asset Management Inc. increased its stake in BorgWarner by 63.5% during the 1st quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock worth $40,000 after purchasing an additional 539 shares in the last quarter. Finally, Allworth Financial LP increased its stake in BorgWarner by 123.1% during the 1st quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock worth $41,000 after purchasing an additional 793 shares in the last quarter. 95.67% of the stock is owned by institutional investors.

Insider Activity

In other BorgWarner news, Director Alexis P. Michas sold 8,772 shares of the firm's stock in a transaction 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 completion of the sale, the director owned 78,903 shares of the company's stock, valued at $3,338,385.93. This trade represents a 10.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Stefan Demmerle sold 5,000 shares of the firm's stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total value of $202,500.00. Following the sale, the vice president directly owned 229,040 shares of the company's stock, valued at $9,276,120. This represents a 2.14% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 31,272 shares of company stock valued at $1,263,318. 0.45% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on BWA. Bank of America cut BorgWarner from a "buy" rating to a "neutral" rating and increased their target price for the stock from $41.00 to $46.00 in a research note on Wednesday. Evercore ISI upped their price target on BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research report on Monday, August 4th. Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Barclays reaffirmed an "overweight" rating and set a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Finally, Wells Fargo & Company upped their price target on BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, BorgWarner presently has a consensus rating of "Moderate Buy" and an average price target of $41.21.

BorgWarner Trading Down 1.2%

NYSE BWA opened at $43.17 on Thursday. The company has a market cap of $9.34 billion, a PE ratio of 45.92, a PEG ratio of 1.32 and a beta of 1.09. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a 12 month low of $24.40 and a 12 month high of $44.45. The stock has a 50 day moving average of $39.02 and a 200-day moving average of $33.27.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 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 the consensus estimate of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities research analysts anticipate that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

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

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Tuesday, September 2nd. This is a boost from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is currently 72.34%.

BorgWarner 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.

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