USA Financial Formulas Takes Position in BorgWarner Inc. $BWA

USA Financial Formulas bought a new position in shares of BorgWarner Inc. (NYSE:BWA) in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 17,358 shares of the auto parts company’s stock, valued at approximately $763,000.

A number of other large investors have also added to or reduced their stakes in the business. State Street Corp boosted its position in BorgWarner by 5.3% during the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock worth $255,578,000 after purchasing an additional 380,942 shares during the period. American Century Companies Inc. lifted its stake in shares of BorgWarner by 1.6% during the 2nd quarter. American Century Companies Inc. now owns 3,774,828 shares of the auto parts company’s stock worth $126,381,000 after buying an additional 58,252 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of BorgWarner by 307.1% during the 2nd quarter. AQR Capital Management LLC now owns 3,422,874 shares of the auto parts company’s stock worth $114,153,000 after buying an additional 2,582,105 shares during the period. Norges Bank acquired a new position in BorgWarner in the 2nd quarter valued at about $110,234,000. Finally, Swedbank AB raised its holdings in BorgWarner by 23.3% in the 2nd quarter. Swedbank AB now owns 2,558,425 shares of the auto parts company’s stock valued at $85,656,000 after acquiring an additional 482,969 shares during the period. Institutional investors own 95.67% of the company’s stock.

Insider Activity at BorgWarner

In related news, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $45.52, for a total value of $682,800.00. Following the transaction, the vice president directly owned 209,040 shares of the company’s stock, valued at $9,515,500.80. This trade represents a 6.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Isabelle Mckenzie sold 3,200 shares of the business’s stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $44.23, for a total transaction of $141,536.00. Following the transaction, the vice president owned 43,555 shares of the company’s stock, valued at approximately $1,926,437.65. This represents a 6.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 23,200 shares of company stock valued at $1,054,336 over the last 90 days. Corporate insiders own 0.45% of the company’s stock.

BorgWarner Price Performance

BorgWarner stock opened at $45.02 on Friday. The firm has a market cap of $9.63 billion, a PE ratio of 71.46, a price-to-earnings-growth ratio of 0.94 and a beta of 1.06. The company has a debt-to-equity ratio of 0.63, a current ratio of 2.05 and a quick ratio of 1.69. The stock’s fifty day moving average price is $43.64 and its two-hundred day moving average price is $40.50. BorgWarner Inc. has a one year low of $24.40 and a one year high of $46.39.

BorgWarner (NYSE:BWA) last released its earnings results on Thursday, October 30th. The auto parts company reported $1.24 earnings per share for the quarter, beating analysts’ consensus estimates of $1.16 by $0.08. BorgWarner had a return on equity of 16.72% and a net margin of 0.94%.The firm had revenue of $3.59 billion during the quarter, compared to the consensus estimate of $3.58 billion. During the same period in the prior year, the company posted $1.09 EPS. The company’s revenue was up 4.1% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.600-4.750 EPS. As a group, research analysts expect that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend was Monday, December 1st. BorgWarner’s dividend payout ratio (DPR) is currently 107.94%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on BWA. Evercore ISI boosted their price objective on BorgWarner from $50.00 to $53.00 and gave the stock an “outperform” rating in a report on Monday, November 24th. Morgan Stanley restated an “equal weight” rating and issued a $49.00 price target (up from $42.00) on shares of BorgWarner in a research note on Monday, December 8th. JPMorgan Chase & Co. upped their price objective on BorgWarner from $45.00 to $53.00 and gave the company an “overweight” rating in a report on Monday, October 20th. The Goldman Sachs Group increased their price objective on BorgWarner from $45.00 to $52.00 and gave the stock a “buy” rating in a research report on Monday, September 29th. Finally, Zacks Research cut shares of BorgWarner from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 13th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, BorgWarner presently has a consensus rating of “Moderate Buy” and an average target price of $46.46.

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.