Zurich Insurance Group Ltd FI Takes Position in BorgWarner Inc. $BWA

Key Points

• Zurich Insurance Group Ltd FI invested approximately $1.22 million in BorgWarner Inc., purchasing 42,700 shares during the first quarter.
• BorgWarner recently declared a quarterly dividend increase to $0.17 per share, representing an annualized dividend yield of 1.6% and up from the previous dividend of $0.11.
• Analysts have a consensus rating of Moderate Buy for BorgWarner, with recent price target increases from major firms, including Morgan Stanley and Bank of America.

Zurich Insurance Group Ltd FI acquired a new stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 42,700 shares of the auto parts company's stock, valued at approximately $1,223,000.

A number of other institutional investors also recently added to or reduced their stakes in the stock. Trajan Wealth LLC boosted its holdings in BorgWarner by 4.6% during the first quarter. Trajan Wealth LLC now owns 7,978 shares of the auto parts company's stock valued at $229,000 after purchasing an additional 353 shares in the last quarter. Farther Finance Advisors LLC boosted its holdings in BorgWarner by 26.1% during the first quarter. Farther Finance Advisors LLC now owns 1,965 shares of the auto parts company's stock valued at $56,000 after purchasing an additional 407 shares in the last quarter. Beverly Hills Private Wealth LLC boosted its holdings in BorgWarner by 5.7% during the first quarter. Beverly Hills Private Wealth LLC now owns 7,852 shares of the auto parts company's stock valued at $225,000 after purchasing an additional 421 shares in the last quarter. Strengthening Families & Communities LLC boosted its holdings in BorgWarner by 14.6% during the first quarter. Strengthening Families & Communities LLC now owns 3,301 shares of the auto parts company's stock valued at $95,000 after purchasing an additional 421 shares in the last quarter. Finally, Janus Henderson Group PLC boosted its holdings in BorgWarner by 0.4% during the fourth quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company's stock valued at $3,580,000 after purchasing an additional 501 shares in the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Bank of America downgraded BorgWarner from a "buy" rating to a "neutral" rating and lifted their price objective for the company from $41.00 to $46.00 in a report on Wednesday. Piper Sandler lifted their target price on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Baird R W upgraded shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Finally, Wells Fargo & Company lifted their target price on shares of BorgWarner from $46.00 to $50.00 and gave the company an "overweight" rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, BorgWarner has an average rating of "Moderate Buy" and an average price target of $41.21.

Insider Buying and Selling at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction 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 completion of the sale, the vice president 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 sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of the company's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total transaction of $371,143.32. Following the sale, the director 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 disclosure for this sale can be found here. In the last 90 days, insiders sold 31,272 shares of company stock worth $1,263,318. Insiders own 0.45% of the company's stock.

BorgWarner Trading Down 1.5%

BWA stock traded down $0.67 during trading on Friday, hitting $43.69. The company had a trading volume of 1,925,820 shares, compared to its average volume of 2,277,518. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. The firm has a 50-day moving average price of $39.37 and a 200-day moving average price of $33.46. BorgWarner Inc. has a 12 month low of $24.40 and a 12 month high of $44.45. The stock has a market cap of $9.45 billion, a price-to-earnings ratio of 46.47, a PEG ratio of 1.46 and a beta of 1.09.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.06 by $0.15. The firm 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%. BorgWarner's revenue was up 1.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Tuesday, September 2nd. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio is presently 72.34%.

BorgWarner announced that its Board of Directors has approved 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 reacquire up to 13.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

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.