16,922 Shares in BorgWarner Inc. $BWA Purchased by Pallas Capital Advisors LLC

Pallas Capital Advisors LLC acquired a new position in BorgWarner Inc. (NYSE:BWA) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 16,922 shares of the auto parts company’s stock, valued at approximately $567,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Nomura Holdings Inc. bought a new stake in shares of BorgWarner in the 4th quarter valued at $229,000. Two Sigma Investments LP raised its holdings in shares of BorgWarner by 2.4% during the fourth quarter. Two Sigma Investments LP now owns 88,078 shares of the auto parts company’s stock worth $2,800,000 after acquiring an additional 2,078 shares during the period. Woodline Partners LP acquired a new stake in shares of BorgWarner during the fourth quarter worth $418,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in BorgWarner by 13.1% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 826,360 shares of the auto parts company’s stock valued at $26,270,000 after acquiring an additional 95,464 shares in the last quarter. Finally, Vise Technologies Inc. bought a new stake in BorgWarner in the 4th quarter valued at approximately $207,000. 95.67% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, VP Isabelle Mckenzie sold 2,500 shares of the firm’s stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value of $100,025.00. Following the transaction, the vice president directly owned 55,945 shares of the company’s stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Stefan Demmerle sold 5,000 shares of the firm’s stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total value of $202,500.00. Following the completion of the transaction, the vice president directly owned 229,040 shares in the company, valued at approximately $9,276,120. This represents a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 31,272 shares of company stock worth $1,263,318 in the last 90 days. Insiders own 0.45% of the company’s stock.

BorgWarner Price Performance

BorgWarner stock opened at $44.17 on Friday. BorgWarner Inc. has a 52 week low of $24.40 and a 52 week high of $44.70. The business has a 50-day simple moving average of $40.24 and a 200 day simple moving average of $34.00. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. The stock has a market cap of $9.56 billion, a price-to-earnings ratio of 46.99, a PEG ratio of 1.46 and a beta of 1.09.

BorgWarner (NYSE:BWA) last posted its earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping the consensus estimate of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The business had revenue of $3.64 billion during the quarter, compared to analysts’ expectations of $3.56 billion. During the same period in the previous year, the business earned $1.19 earnings per share. The firm’s revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, research analysts forecast that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner announced that its Board of Directors has initiated a share buyback program on Thursday, July 31st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its stock is undervalued.

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were issued a dividend of $0.17 per share. This is a positive change from BorgWarner’s previous quarterly dividend of $0.11. The ex-dividend date was Tuesday, September 2nd. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.5%. BorgWarner’s dividend payout ratio (DPR) is currently 72.34%.

Analyst Upgrades and Downgrades

Several research firms have commented on BWA. Zacks Research upgraded BorgWarner from a “hold” rating to a “strong-buy” rating in a research note on Friday, September 12th. Bank of America lowered BorgWarner from a “buy” rating to a “neutral” rating and upped their price objective for the company from $41.00 to $46.00 in a report on Wednesday, September 10th. Piper Sandler upped their price objective on BorgWarner from $37.00 to $44.00 and gave the stock an “overweight” rating in a research report on Friday, August 1st. Evercore ISI increased their target price on BorgWarner from $38.00 to $42.00 and gave the company an “outperform” rating in a research report on Monday, August 4th. Finally, Barclays reissued an “overweight” rating and issued a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $41.21.

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.