Pallas Capital Advisors LLC Makes New Investment in BorgWarner Inc. $BWA

Pallas Capital Advisors LLC acquired a new position in shares of BorgWarner Inc. (NYSE:BWA) during the 2nd quarter, HoldingsChannel.com reports. The firm acquired 22,364 shares of the auto parts company’s stock, valued at approximately $1,485,000.

Several other hedge funds also recently modified their holdings of BWA. Clearstead Trust LLC bought a new position in BorgWarner in the second quarter valued at approximately $28,000. Prosperity Bancshares Inc acquired a new position in BorgWarner in the fourth quarter valued at about $37,000. Torren Management LLC bought a new stake in BorgWarner during the 4th quarter worth approximately $48,000. Cedar Mountain Advisors LLC acquired a new stake in BorgWarner during the 1st quarter worth approximately $55,000. Finally, Grove Bank & Trust raised its holdings in BorgWarner by 4,304.3% during the 2nd quarter. Grove Bank & Trust now owns 1,013 shares of the auto parts company’s stock worth $67,000 after buying an additional 990 shares during the period. Institutional investors own 95.67% of the company’s stock.

BorgWarner Price Performance

Shares of BWA opened at $69.98 on Tuesday. The stock has a market capitalization of $14.25 billion, a P/E ratio of 34.99, a P/E/G ratio of 1.24 and a beta of 1.10. BorgWarner Inc. has a twelve month low of $40.50 and a twelve month high of $78.82. The company has a 50 day moving average of $66.90 and a 200-day moving average of $61.14. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67.

BorgWarner (NYSE:BWA) last announced its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, topping the consensus estimate of $1.28 by $0.14. The business had revenue of $3.65 billion during the quarter, compared to analysts’ expectations of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The firm’s revenue was up .3% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, equities research analysts forecast that BorgWarner Inc. will post 5.19 EPS for the current fiscal year.

BorgWarner declared that its Board of Directors has approved a stock repurchase plan on Wednesday, August 5th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to purchase up to 7.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its stock is undervalued.

BorgWarner Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a $0.17 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. BorgWarner’s dividend payout ratio (DPR) is presently 34.00%.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of BorgWarner in a report on Thursday, August 6th. Wells Fargo & Company boosted their price objective on shares of BorgWarner from $68.00 to $83.00 and gave the company an “overweight” rating in a research report on Tuesday, June 2nd. Robert W. Baird set a $79.00 target price on shares of BorgWarner in a research note on Thursday, August 6th. TD Cowen increased their target price on BorgWarner from $67.00 to $68.00 and gave the stock a “hold” rating in a report on Thursday, August 6th. Finally, The Goldman Sachs Group reissued a “buy” rating and issued a $84.00 price target on shares of BorgWarner in a research note on Thursday, June 11th. Nine analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $75.93.

BorgWarner Profile

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.