Ontario Teachers Pension Plan Board Buys New Shares in BorgWarner Inc. (NYSE:BWA)

Ontario Teachers Pension Plan Board purchased a new stake in BorgWarner Inc. (NYSE:BWA) in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm purchased 30,979 shares of the auto parts company’s stock, valued at approximately $1,076,000.

A number of other large investors have also recently added to or reduced their stakes in BWA. Vanguard Group Inc. raised its stake in BorgWarner by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 27,147,545 shares of the auto parts company’s stock worth $973,239,000 after purchasing an additional 331,401 shares in the last quarter. Victory Capital Management Inc. raised its stake in BorgWarner by 10.9% in the 4th quarter. Victory Capital Management Inc. now owns 9,668,438 shares of the auto parts company’s stock worth $346,614,000 after purchasing an additional 948,659 shares in the last quarter. Hotchkis & Wiley Capital Management LLC raised its stake in BorgWarner by 43.5% in the 4th quarter. Hotchkis & Wiley Capital Management LLC now owns 2,213,630 shares of the auto parts company’s stock worth $79,359,000 after purchasing an additional 670,720 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in BorgWarner by 1.9% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,108,200 shares of the auto parts company’s stock worth $75,579,000 after purchasing an additional 39,806 shares in the last quarter. Finally, Norges Bank acquired a new stake in BorgWarner in the 4th quarter worth about $75,489,000. Institutional investors and hedge funds own 95.67% of the company’s stock.

Analyst Upgrades and Downgrades

BWA has been the topic of several recent analyst reports. UBS Group raised their target price on shares of BorgWarner from $41.00 to $42.00 and gave the company a “buy” rating in a report on Wednesday, July 10th. Bank of America decreased their target price on shares of BorgWarner from $50.00 to $45.00 and set a “buy” rating on the stock in a report on Monday. Robert W. Baird decreased their target price on shares of BorgWarner from $40.00 to $38.00 and set a “neutral” rating on the stock in a report on Friday, July 12th. JPMorgan Chase & Co. decreased their target price on shares of BorgWarner from $52.00 to $50.00 and set an “overweight” rating on the stock in a report on Monday. Finally, Citigroup decreased their price target on shares of BorgWarner from $41.00 to $36.00 and set a “neutral” rating on the stock in a report on Friday, July 12th. Seven equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $41.29.

BorgWarner Trading Up 0.1 %

Shares of NYSE BWA traded up $0.03 during midday trading on Monday, reaching $32.65. The stock had a trading volume of 2,897,316 shares, compared to its average volume of 2,849,533. The firm has a market cap of $7.44 billion, a price-to-earnings ratio of 12.40, a price-to-earnings-growth ratio of 0.86 and a beta of 1.22. BorgWarner Inc. has a twelve month low of $29.51 and a twelve month high of $46.77. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.20 and a current ratio of 1.54. The company’s 50 day moving average price is $34.09 and its 200 day moving average price is $33.53.

BorgWarner (NYSE:BWA) last released its earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.87 by $0.16. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. The company had revenue of $3.60 billion for the quarter, compared to the consensus estimate of $3.51 billion. During the same quarter in the previous year, the company earned $1.09 EPS. BorgWarner’s quarterly revenue was up 6.3% compared to the same quarter last year. As a group, sell-side analysts expect that BorgWarner Inc. will post 4.05 EPS for the current year.

BorgWarner Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 17th. Investors of record on Monday, June 3rd were given a dividend of $0.11 per share. The ex-dividend date of this dividend was Monday, June 3rd. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.35%. BorgWarner’s payout ratio is presently 16.67%.

BorgWarner announced that its Board of Directors has approved a share buyback plan on Thursday, May 2nd that allows the company to buyback $500.00 million in shares. This buyback authorization allows the auto parts company to reacquire up to 6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management 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.