Hudson Bay Capital Management LP Lowers Position in BorgWarner Inc. $BWA

Hudson Bay Capital Management LP lowered its stake in shares of BorgWarner Inc. (NYSE:BWA) by 59.4% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 49,354 shares of the auto parts company’s stock after selling 72,354 shares during the period. Hudson Bay Capital Management LP’s holdings in BorgWarner were worth $2,170,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in BWA. Vanguard Group Inc. increased its holdings in shares of BorgWarner by 2.5% during the 3rd quarter. Vanguard Group Inc. now owns 27,578,374 shares of the auto parts company’s stock worth $1,212,345,000 after buying an additional 667,788 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in BorgWarner by 1.3% in the third quarter. Dimensional Fund Advisors LP now owns 11,782,629 shares of the auto parts company’s stock valued at $517,960,000 after acquiring an additional 155,871 shares during the last quarter. State Street Corp boosted its holdings in BorgWarner by 5.3% in the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock valued at $255,578,000 after acquiring an additional 380,942 shares during the last quarter. AQR Capital Management LLC grew its position in BorgWarner by 119.7% during the third quarter. AQR Capital Management LLC now owns 7,518,776 shares of the auto parts company’s stock valued at $330,525,000 after acquiring an additional 4,095,902 shares during the period. Finally, LSV Asset Management grew its position in BorgWarner by 4.7% during the third quarter. LSV Asset Management now owns 6,043,654 shares of the auto parts company’s stock valued at $265,679,000 after acquiring an additional 272,387 shares during the period. Institutional investors and hedge funds own 95.67% of the company’s stock.

BorgWarner Trading Down 0.6%

BWA opened at $52.12 on Friday. BorgWarner Inc. has a 12-month low of $24.40 and a 12-month high of $70.08. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.07 and a quick ratio of 1.70. The stock has a market capitalization of $10.79 billion, a PE ratio of 41.70, a P/E/G ratio of 1.06 and a beta of 1.04. The firm’s fifty day moving average price is $53.19 and its 200 day moving average price is $47.25.

BorgWarner (NYSE:BWA) last announced its quarterly earnings data on Wednesday, February 11th. The auto parts company reported $1.35 earnings per share for the quarter, topping the consensus estimate of $1.16 by $0.19. The company had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.49 billion. BorgWarner had a net margin of 1.93% and a return on equity of 17.89%. The firm’s revenue for the quarter was up 3.9% compared to the same quarter last year. During the same period last year, the business earned $1.01 EPS. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. As a group, research analysts expect that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 2nd were paid a dividend of $0.17 per share. The ex-dividend date was Monday, March 2nd. This represents a $0.68 annualized dividend and a yield of 1.3%. BorgWarner’s dividend payout ratio is presently 54.40%.

Insider Activity at BorgWarner

In other BorgWarner news, EVP Tonit M. Calaway sold 16,000 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $65.08, for a total transaction of $1,041,280.00. Following the transaction, the executive vice president owned 240,251 shares of the company’s stock, valued at $15,635,535.08. This trade represents a 6.24% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Paul Arthur Farrell sold 12,012 shares of BorgWarner stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $52.31, for a total value of $628,347.72. Following the completion of the transaction, the executive vice president owned 38,238 shares of the company’s stock, valued at approximately $2,000,229.78. The trade was a 23.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 78,083 shares of company stock worth $4,638,585 over the last quarter. 0.45% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of equities analysts have recently commented on BWA shares. New Street Research set a $66.00 price objective on BorgWarner in a report on Thursday, February 12th. UBS Group upgraded BorgWarner from a “sell” rating to a “neutral” rating and set a $55.00 target price for the company in a report on Friday, March 6th. Morgan Stanley set a $60.00 price target on shares of BorgWarner in a report on Thursday, February 12th. Piper Sandler reaffirmed a “neutral” rating and set a $51.00 price target (down from $52.00) on shares of BorgWarner in a research report on Thursday, January 8th. Finally, Bank of America assumed coverage on shares of BorgWarner in a research note on Wednesday, March 4th. They set a “neutral” rating for the company. Seven research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, BorgWarner presently has an average rating of “Moderate Buy” and a consensus price target of $63.42.

About BorgWarner

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.