Covalis Capital LLP Acquires Shares of 483,018 BorgWarner Inc. $BWA

Covalis Capital LLP bought a new stake in BorgWarner Inc. (NYSE:BWA) during the 2nd quarter, HoldingsChannel reports. The fund bought 483,018 shares of the auto parts company’s stock, valued at approximately $16,171,000. BorgWarner comprises 2.0% of Covalis Capital LLP’s investment portfolio, making the stock its 18th largest holding.

Other large investors have also recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd grew its holdings in BorgWarner by 1,133.3% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company’s stock valued at $26,000 after purchasing an additional 714 shares during the last quarter. Addison Advisors LLC boosted its position in shares of BorgWarner by 1,647.8% during the second quarter. Addison Advisors LLC now owns 804 shares of the auto parts company’s stock valued at $27,000 after buying an additional 758 shares during the period. Assetmark Inc. grew its stake in shares of BorgWarner by 81.8% during the second quarter. Assetmark Inc. now owns 809 shares of the auto parts company’s stock valued at $27,000 after buying an additional 364 shares during the last quarter. Manchester Capital Management LLC purchased a new stake in shares of BorgWarner in the first quarter worth approximately $30,000. Finally, Trust Co. of Vermont lifted its stake in shares of BorgWarner by 55,000.0% during the 2nd quarter. Trust Co. of Vermont now owns 1,102 shares of the auto parts company’s stock worth $37,000 after acquiring an additional 1,100 shares during the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have commented on the company. The Goldman Sachs Group upped their price objective on BorgWarner from $45.00 to $52.00 and gave the company a “buy” rating in a research report on Monday, September 29th. Zacks Research cut shares of BorgWarner from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. JPMorgan Chase & Co. raised their price target on shares of BorgWarner from $45.00 to $53.00 and gave the stock an “overweight” rating in a research note on Monday, October 20th. Weiss Ratings reissued a “hold (c)” rating on shares of BorgWarner in a research report on Wednesday, October 8th. Finally, Bank of America downgraded shares of BorgWarner from a “buy” rating to a “neutral” rating and upped their target price for the stock from $41.00 to $46.00 in a research note on Wednesday, September 10th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, BorgWarner presently has a consensus rating of “Moderate Buy” and an average price target of $45.85.

Insider Transactions at BorgWarner

In related news, Director Alexis P. Michas sold 8,772 shares of the company’s stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total transaction of $371,143.32. Following the completion of the sale, the director directly owned 78,903 shares in the company, valued at $3,338,385.93. This represents a 10.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $45.52, for a total value of $682,800.00. Following the completion of the transaction, the vice president owned 209,040 shares in the company, valued at $9,515,500.80. This trade represents a 6.70% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 31,972 shares of company stock valued at $1,425,479. Corporate insiders own 0.45% of the company’s stock.

BorgWarner Trading Up 4.8%

NYSE BWA opened at $42.94 on Friday. BorgWarner Inc. has a one year low of $24.40 and a one year high of $46.39. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. The company has a market capitalization of $9.19 billion, a price-to-earnings ratio of 45.68, a price-to-earnings-growth ratio of 1.58 and a beta of 1.06. The company’s 50-day simple moving average is $43.61 and its two-hundred day simple moving average is $38.97.

BorgWarner (NYSE:BWA) last released its quarterly earnings data on Thursday, October 30th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.16 by $0.08. The firm had revenue of $3.59 billion for the quarter, compared to the consensus estimate of $3.58 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company’s quarterly revenue was up 4.1% on a year-over-year basis. During the same period last year, the firm earned $1.09 earnings per share. BorgWarner has set its FY 2025 guidance at 4.600-4.750 EPS. Equities analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Monday, December 1st will be issued a $0.17 dividend. The ex-dividend date is Monday, December 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. BorgWarner’s dividend payout ratio (DPR) is currently 107.94%.

BorgWarner announced that its board has approved a share buyback plan on Thursday, July 31st that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

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.