BorgWarner Inc. $BWA Stock: Retirement Systems of Alabama Grows Position

Retirement Systems of Alabama grew its position in BorgWarner Inc. (NYSE:BWA) by 38.5% during the 3rd quarter, HoldingsChannel.com reports. The firm owned 293,813 shares of the auto parts company’s stock after acquiring an additional 81,665 shares during the quarter. Retirement Systems of Alabama’s holdings in BorgWarner were worth $17,661,000 at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new position in shares of BorgWarner during the second quarter worth about $1,678,187,000. William Blair Investment Management LLC purchased a new stake in shares of BorgWarner during the 2nd quarter valued at about $251,305,000. Bank of America Corp DE purchased a new stake in shares of BorgWarner during the 2nd quarter valued at about $250,618,000. Bank of New York Mellon Corp purchased a new stake in shares of BorgWarner during the 2nd quarter valued at about $112,292,000. Finally, Royal London Asset Management Ltd. lifted its position in BorgWarner by 17.5% during the 2nd quarter. Royal London Asset Management Ltd. now owns 1,487,868 shares of the auto parts company’s stock worth $98,794,000 after acquiring an additional 221,908 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have weighed in on BWA. Wall Street Zen upgraded BorgWarner from a “hold” rating to a “buy” rating in a report on Sunday, November 1st. Deutsche Bank set a $80.00 price objective on shares of BorgWarner in a research note on Thursday, August 6th. JPMorgan Chase & Co. lifted their price objective on shares of BorgWarner from $75.00 to $85.00 and gave the company an “overweight” rating in a research note on Monday, August 10th. TD Cowen reduced their target price on shares of BorgWarner from $68.00 to $67.00 and set a “hold” rating on the stock in a research report on Friday, October 30th. Finally, Barclays decreased their target price on shares of BorgWarner from $85.00 to $80.00 and set an “overweight” rating for the company in a research note on Monday, November 2nd. Eleven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, BorgWarner presently has a consensus rating of “Moderate Buy” and a consensus price target of $79.00.

BorgWarner Trading Down 0.4%

BWA opened at $51.07 on Friday. The stock has a market capitalization of $10.25 billion, a PE ratio of 21.73, a P/E/G ratio of 0.72 and a beta of 1.20. The firm’s fifty day moving average price is $58.73 and its 200 day moving average price is $60.66. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.41 and a quick ratio of 1.12. BorgWarner Inc. has a 12-month low of $40.73 and a 12-month high of $78.82.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Thursday, October 29th. The auto parts company reported $1.39 EPS for the quarter, beating analysts’ consensus estimates of $1.25 by $0.14. The firm had revenue of $3.49 billion for the quarter, compared to the consensus estimate of $3.50 billion. BorgWarner had a net margin of 3.36% and a return on equity of 19.61%. The firm’s revenue was down 2.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.24 EPS. As a group, research analysts expect that BorgWarner Inc. will post 5.27 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Tuesday, December 1st. BorgWarner’s dividend payout ratio is 28.94%.

BorgWarner declared that its Board of Directors has approved a stock repurchase program on Wednesday, August 5th that permits the company to repurchase $1 billion in outstanding shares. This repurchase authorization permits the auto parts company to buy up to 7.7% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its shares are undervalued.

Insider Transactions at BorgWarner

In other news, Director Rajesh Kalathur acquired 7,407 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was purchased at an average cost of $67.59 per share, with a total value of $500,639.13. Following the completion of the acquisition, the director directly owned 7,407 shares in the company, valued at $500,639.13. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Michael S. Hanley sold 5,000 shares of the business’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $65.51, for a total value of $327,550.00. Following the completion of the sale, the director directly owned 34,313 shares of the company’s stock, valued at approximately $2,247,844.63. This represents a 12.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.76% of the company’s stock.

BorgWarner Company Profile

BorgWarner Inc. is a global automotive supplier that develops and manufactures technologies for passenger vehicles, commercial vehicles and other applications. Its products support vehicles powered by internal combustion engines as well as hybrid and electric vehicles. The company’s offerings include turbocharging systems, transmission components, electric motors, power electronics, battery and thermal-management systems, and technologies that help control emissions. BorgWarner supplies automakers and commercial-vehicle manufacturers around the world, with operations serving markets across North America, Europe and Asia.