BorgWarner Inc. $BWA Shares Acquired by Woodline Partners LP

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 grew its holdings in shares of BorgWarner Inc. (NYSE:BWA - Free Report) by 4,140.3% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund 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 approximately 0.25% of BorgWarner worth $15,956,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in BWA. LSV Asset Management boosted its stake in BorgWarner by 36.7% during the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after purchasing an additional 1,580,935 shares during the last quarter. Millennium Management LLC raised its holdings in shares of BorgWarner by 144.7% during the 1st quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company's stock worth $57,579,000 after acquiring an additional 1,188,466 shares during the period. Leith Wheeler Investment Counsel Ltd. purchased a new position in shares of BorgWarner during the 1st quarter worth $28,989,000. Principal Financial Group Inc. raised its holdings in shares of BorgWarner by 338.5% during the 1st quarter. Principal Financial Group Inc. now owns 1,085,149 shares of the auto parts company's stock worth $31,090,000 after acquiring an additional 837,668 shares during the period. Finally, Public Sector Pension Investment Board raised its holdings in shares of BorgWarner by 1,121.2% during the 1st quarter. Public Sector Pension Investment Board now owns 693,551 shares of the auto parts company's stock worth $19,870,000 after acquiring an additional 636,757 shares during the period. Institutional investors and hedge funds own 95.67% of the company's stock.

Insider Buying and Selling at BorgWarner

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

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Zacks Research upgraded BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Friday. Piper Sandler lifted their price target on BorgWarner from $37.00 to $44.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Baird R W upgraded BorgWarner from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 3rd. Barclays reiterated an "overweight" rating and set a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Finally, Wells Fargo & Company lifted their price target on BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a report on Tuesday, September 9th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $41.21.

BorgWarner Trading Down 1.3%

BWA traded down $0.59 on Tuesday, hitting $43.28. The company had a trading volume of 363,358 shares, compared to its average volume of 2,798,935. The firm has a market cap of $9.37 billion, a P/E ratio of 46.07, a PEG ratio of 1.44 and a beta of 1.09. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $44.45. The company's fifty day moving average price is $39.55 and its 200 day moving average price is $33.61. 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 (NYSE:BWA - Get Free Report) last issued 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 firm had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. BorgWarner's revenue was up 1.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, equities analysts expect that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner declared that its Board of Directors has approved a share buyback program on Thursday, July 31st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were given a $0.17 dividend. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $0.68 annualized dividend and a yield of 1.6%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio 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.