First Trust Direct Indexing L.P. Acquires 848 Shares of BorgWarner Inc. (NYSE:BWA)

First Trust Direct Indexing L.P. increased its holdings in BorgWarner Inc. (NYSE:BWA) by 13.4% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 7,173 shares of the auto parts company’s stock after buying an additional 848 shares during the quarter. First Trust Direct Indexing L.P.’s holdings in BorgWarner were worth $257,000 at the end of the most recent reporting period.

Other large investors also recently added to or reduced their stakes in the company. Headlands Technologies LLC purchased a new position in shares of BorgWarner during the 3rd quarter worth $28,000. Sound Income Strategies LLC purchased a new position in BorgWarner during the fourth quarter valued at $32,000. Bruce G. Allen Investments LLC bought a new stake in BorgWarner during the fourth quarter valued at about $33,000. Trust Co. of Vermont increased its position in BorgWarner by 49,000.0% in the third quarter. Trust Co. of Vermont now owns 982 shares of the auto parts company’s stock worth $40,000 after buying an additional 980 shares in the last quarter. Finally, NBC Securities Inc. bought a new stake in BorgWarner during the 3rd quarter worth approximately $51,000. 95.67% of the stock is currently owned by institutional investors.

Insider Activity

In other news, CEO Frederic Lissalde sold 225,900 shares of BorgWarner stock in a transaction dated Wednesday, February 14th. The shares were sold at an average price of $31.08, for a total value of $7,020,972.00. Following the sale, the chief executive officer now owns 455,227 shares in the company, valued at $14,148,455.16. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In other BorgWarner news, CEO Frederic Lissalde sold 225,900 shares of the firm’s stock in a transaction on Wednesday, February 14th. The stock was sold at an average price of $31.08, for a total value of $7,020,972.00. Following the transaction, the chief executive officer now owns 455,227 shares in the company, valued at approximately $14,148,455.16. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Stefan Demmerle sold 3,000 shares of the company’s stock in a transaction on Wednesday, March 13th. The stock was sold at an average price of $33.00, for a total transaction of $99,000.00. Following the sale, the vice president now directly owns 249,013 shares of the company’s stock, valued at approximately $8,217,429. The disclosure for this sale can be found here. Insiders sold 287,503 shares of company stock worth $9,015,478 over the last three months. 0.63% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Piper Sandler initiated coverage on shares of BorgWarner in a report on Friday, March 15th. They issued an “overweight” rating and a $43.00 target price for the company. TD Cowen lifted their target price on BorgWarner from $36.00 to $40.00 and gave the stock a “buy” rating in a report on Friday, May 3rd. Robert W. Baird lifted their price objective on BorgWarner from $36.00 to $40.00 and gave the stock a “neutral” rating in a research note on Friday, May 3rd. StockNews.com raised shares of BorgWarner from a “hold” rating to a “buy” rating in a research note on Monday. Finally, TheStreet lowered BorgWarner from a “b-” rating to a “c+” rating in a research report on Thursday, February 8th. Seven equities research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $43.76.

BorgWarner Price Performance

Shares of NYSE BWA opened at $36.80 on Wednesday. BorgWarner Inc. has a fifty-two week low of $29.51 and a fifty-two week high of $50.04. The company has a market cap of $8.38 billion, a PE ratio of 13.94, a P/E/G ratio of 1.08 and a beta of 1.30. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.20 and a current ratio of 1.54. The business has a 50-day simple moving average of $33.35 and a two-hundred day simple moving average of $33.67.

BorgWarner (NYSE:BWA) last posted its quarterly earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. The business had revenue of $3.60 billion during the quarter, compared to analysts’ expectations of $3.51 billion. During the same quarter last year, the company posted $1.09 earnings per share. The business’s quarterly revenue was up 6.3% on a year-over-year basis. As a group, equities analysts expect that BorgWarner Inc. will post 3.94 EPS for the current fiscal year.

BorgWarner announced that its Board of Directors has initiated a stock buyback plan on Thursday, May 2nd that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the auto parts company to repurchase up to 6% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s leadership believes its shares are undervalued.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 17th. Shareholders of record on Monday, June 3rd will be given a dividend of $0.11 per share. The ex-dividend date is Monday, June 3rd. This represents a $0.44 dividend on an annualized basis and a yield of 1.20%. BorgWarner’s dividend payout ratio is currently 16.67%.

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.