Isabelle Mckenzie Sells 2,500 Shares of BorgWarner Inc. (NYSE:BWA) Stock

Key Points

• Isabelle Mckenzie, VP of BorgWarner Inc., sold 2,500 shares at an average price of $40.01, which decreased her ownership by 4.28%. Following the sale, her remaining shares are valued at approximately $2.2 million.
• BorgWarner's recent quarterly earnings reported $1.21 EPS, surpassing expectations, and the company has authorized a $1 billion share buyback program.
• The company also announced an increase in its quarterly dividend from $0.11 to $0.17, resulting in an annualized yield of 1.6% with a payout ratio of 72.34%.

BorgWarner Inc. (NYSE:BWA - Get Free Report) VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction dated Tuesday, August 12th. The stock was 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. This represents a 4.28% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.

Isabelle Mckenzie also recently made the following trade(s):

• On Friday, May 16th, Isabelle Mckenzie sold 5,000 shares of BorgWarner stock. The stock was sold at an average price of $33.25, for a total transaction of $166,250.00.

BorgWarner Price Performance

BorgWarner stock traded down $0.12 during midday trading on Thursday, reaching $41.45. The company's stock had a trading volume of 2,440,908 shares, compared to its average volume of 2,877,040. The stock has a market cap of $8.97 billion, a PE ratio of 44.09, a price-to-earnings-growth ratio of 1.21 and a beta of 1.10. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The business has a 50-day moving average price of $35.21 and a 200-day moving average price of $31.59. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $41.67.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings results 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 company had revenue of $3.64 billion for the quarter, compared to analysts' expectations of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%. The business's quarterly revenue was up 1.0% compared to the same quarter last year. During the same period in the previous year, the business posted $1.19 earnings per share. On average, sell-side analysts predict that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner declared that its board has approved a share 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 purchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board of directors believes its shares are undervalued.

BorgWarner Increases Dividend

The business also recently disclosed 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 positive change from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. BorgWarner's payout ratio is currently 72.34%.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Bank of America upped their target price on shares of BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Robert W. Baird upped their target price on shares of BorgWarner from $32.00 to $39.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. JPMorgan Chase & Co. upped their target price on shares of BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research report on Monday, August 4th. Evercore ISI increased their price target on shares of BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research report on Monday, August 4th. Finally, Piper Sandler increased their price target on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Six investment analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $39.64.

Hedge Funds Weigh In On BorgWarner

Several institutional investors have recently added to or reduced their stakes in the business. Global X Japan Co. Ltd. raised its position in shares of BorgWarner by 133.4% during the first 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 during the period. Caitong International Asset Management Co. Ltd raised its position in shares of BorgWarner by 1,133.3% during the second quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company's stock worth $26,000 after purchasing an additional 714 shares during the period. Assetmark Inc. raised its position in shares of BorgWarner by 81.8% during the second quarter. Assetmark Inc. now owns 809 shares of the auto parts company's stock worth $27,000 after purchasing an additional 364 shares during the period. Addison Advisors LLC raised its position in shares of BorgWarner by 1,647.8% during the second quarter. Addison Advisors LLC now owns 804 shares of the auto parts company's stock worth $27,000 after purchasing an additional 758 shares during the period. Finally, Manchester Capital Management LLC bought a new stake in BorgWarner during the first quarter worth $30,000. 95.67% of the stock is owned by institutional investors and hedge funds.

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.

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