Insider Selling: BorgWarner (NYSE:BWA) Director Sells 8,772 Shares of Stock

Key Points

• Director Sales: BorgWarner Director Alexis Michas sold 8,772 shares at an average price of $42.31, decreasing their position by 10.01% and leaving them with 78,903 shares valued at approximately $3.34 million.
• Dividend Increase: The company declared a quarterly dividend of $0.17, up from $0.11, representing a 1.6% yield, with payments scheduled for September 15th.
• Stock Performance: BorgWarner shares rose 0.6% to $42.93, with a market cap of $9.29 billion and a current consensus rating of "Moderate Buy" based on recent analyst evaluations.

BorgWarner Inc. (NYSE:BWA - Get Free Report) Director Alexis Michas sold 8,772 shares of the 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 transaction, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.

BorgWarner Trading Up 0.6%

Shares of BorgWarner stock traded up $0.27 during trading on Wednesday, hitting $42.93. The stock had a trading volume of 2,276,057 shares, compared to its average volume of 2,833,624. The firm's fifty day simple moving average is $37.86 and its 200-day simple moving average is $32.72. The stock has a market cap of $9.29 billion, a PE ratio of 45.67, a PEG ratio of 1.29 and a beta of 1.09. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. BorgWarner Inc. has a 12 month low of $24.40 and a 12 month high of $43.83.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) 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 analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The business's revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the business earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, sell-side analysts expect that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The business also recently declared 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. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.68 annualized dividend and a yield of 1.6%. This is a boost from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is 46.81%.

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

Wall Street Analyst Weigh In

Several research firms recently commented on BWA. Evercore ISI raised their price target on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. UBS Group raised their target price on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a research report on Monday, July 14th. JPMorgan Chase & Co. lifted their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research report on Monday, August 4th. Bank of America lifted their target price on shares of BorgWarner from $35.00 to $41.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Finally, Robert W. Baird upgraded shares of BorgWarner from a "neutral" rating to an "outperform" rating and lifted their target price for the stock from $41.00 to $52.00 in a research note on Wednesday. Eleven analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, BorgWarner currently has a consensus rating of "Moderate Buy" and an average target price of $40.57.

Hedge Funds Weigh In On BorgWarner

Institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd increased its holdings in shares of BorgWarner by 1,133.3% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 714 shares in the last quarter. Addison Advisors LLC increased its holdings in BorgWarner by 1,647.8% in the 2nd quarter. Addison Advisors LLC now owns 804 shares of the auto parts company's stock worth $27,000 after acquiring an additional 758 shares in the last quarter. Assetmark Inc. increased its holdings in BorgWarner by 81.8% in the 2nd quarter. Assetmark Inc. now owns 809 shares of the auto parts company's stock worth $27,000 after acquiring an additional 364 shares in the last quarter. Global X Japan Co. Ltd. increased its holdings in BorgWarner by 133.4% in 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. Finally, LRI Investments LLC increased its holdings in BorgWarner by 1,515.0% in the 4th quarter. LRI Investments LLC now owns 969 shares of the auto parts company's stock worth $31,000 after acquiring an additional 909 shares in the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

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.

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