Alpha Omega Wealth Management LLC Increases Stock Holdings in BorgWarner Inc. $BWA

Alpha Omega Wealth Management LLC lifted its stake in shares of BorgWarner Inc. (NYSE:BWA) by 25.1% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 31,523 shares of the auto parts company’s stock after acquiring an additional 6,333 shares during the period. Alpha Omega Wealth Management LLC’s holdings in BorgWarner were worth $1,055,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP grew its holdings in BorgWarner by 2.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company’s stock valued at $331,429,000 after buying an additional 284,587 shares during the period. LSV Asset Management grew its holdings in BorgWarner by 36.7% in the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company’s stock valued at $168,722,000 after buying an additional 1,580,935 shares during the period. American Century Companies Inc. grew its holdings in BorgWarner by 1.7% in the 1st quarter. American Century Companies Inc. now owns 3,716,576 shares of the auto parts company’s stock valued at $106,480,000 after buying an additional 60,382 shares during the period. Swedbank AB grew 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 buying an additional 482,969 shares during the period. Finally, Millennium Management LLC grew its holdings in BorgWarner by 144.7% in the 1st quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company’s stock valued at $57,579,000 after buying an additional 1,188,466 shares during the period. Hedge funds and other institutional investors own 95.67% of the company’s stock.

Insider Activity

In other news, VP Stefan Demmerle sold 5,000 shares of the business’s stock in a transaction that occurred 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 sale, the vice president directly owned 229,040 shares in the company, valued at approximately $9,276,120. The trade was a 2.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of the business’s stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the sale, the director owned 78,903 shares of the company’s stock, valued at $3,338,385.93. This trade represents a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 31,272 shares of company stock worth $1,263,318. 0.63% of the stock is currently owned by insiders.

BorgWarner Price Performance

BWA stock opened at $43.58 on Tuesday. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a 52-week low of $24.40 and a 52-week high of $44.70. The stock’s 50 day moving average is $40.39 and its two-hundred day moving average is $34.13. The company has a market capitalization of $9.43 billion, a PE ratio of 46.36, a P/E/G ratio of 1.46 and a beta of 1.09.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (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 company had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. During the same period in the previous year, the business earned $1.19 EPS. BorgWarner’s revenue for the quarter was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner announced that its Board of Directors has authorized a share buyback plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to purchase up to 13.2% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its shares are undervalued.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were issued a $0.17 dividend. 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 1.6%. BorgWarner’s dividend payout ratio (DPR) is presently 72.34%.

Analysts Set New Price Targets

BWA has been the subject of several recent analyst reports. Wells Fargo & Company lifted their price target on BorgWarner from $46.00 to $50.00 and gave the company an “overweight” rating in a report on Tuesday, September 9th. Bank of America lowered BorgWarner from a “buy” rating to a “neutral” rating and lifted their price objective for the company from $41.00 to $46.00 in a research note on Wednesday, September 10th. UBS Group lifted their price objective on BorgWarner from $35.00 to $38.00 and gave the company a “neutral” rating in a research note on Monday, July 14th. Baird R W raised BorgWarner from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, September 3rd. Finally, Wall Street Zen raised BorgWarner from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 12th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $41.21.

About BorgWarner

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.