Charles Schwab Investment Management Inc. Reduces Position in BorgWarner Inc. (NYSE:BWA)

Charles Schwab Investment Management Inc. trimmed its holdings in BorgWarner Inc. (NYSE:BWA) by 14.9% in the 1st quarter, according to its most recent filing with the SEC. The institutional investor owned 1,897,119 shares of the auto parts company’s stock after selling 332,381 shares during the quarter. Charles Schwab Investment Management Inc. owned about 0.86% of BorgWarner worth $54,352,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of BWA. Bank of America Corp DE grew its stake in shares of BorgWarner by 91.9% in the fourth quarter. Bank of America Corp DE now owns 3,878,932 shares of the auto parts company’s stock worth $123,311,000 after acquiring an additional 1,857,907 shares during the period. LSV Asset Management boosted its holdings in BorgWarner by 36.7% in the first quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company’s stock worth $168,722,000 after purchasing an additional 1,580,935 shares during the last quarter. Fuller & Thaler Asset Management Inc. grew its position in BorgWarner by 8,137.5% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 1,299,057 shares of the auto parts company’s stock worth $41,297,000 after purchasing an additional 1,283,287 shares during the period. Principal Financial Group Inc. raised its stake in BorgWarner by 338.5% during the 1st quarter. Principal Financial Group Inc. now owns 1,085,149 shares of the auto parts company’s stock valued at $31,090,000 after buying an additional 837,668 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of BorgWarner by 7.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 11,284,040 shares of the auto parts company’s stock valued at $358,720,000 after buying an additional 753,344 shares during the period. Hedge funds and other institutional investors own 95.67% of the company’s stock.

Insider Activity

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the transaction, the vice president owned 55,945 shares of the company’s stock, valued at $2,238,359.45. This represents a 4.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Stefan Demmerle sold 15,000 shares of the stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total transaction of $589,650.00. Following the transaction, the vice president owned 234,040 shares of the company’s stock, valued at $9,200,112.40. This trade represents a 6.02% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 22,500 shares of company stock valued at $892,175 in the last three months. Insiders own 0.45% of the company’s stock.

BorgWarner Stock Performance

BWA opened at $41.39 on Friday. The firm has a market cap of $8.96 billion, a P/E ratio of 44.03, a PEG ratio of 1.25 and a beta of 1.10. BorgWarner Inc. has a 1-year low of $24.40 and a 1-year high of $41.67. The company has a 50 day simple moving average of $35.58 and a two-hundred day simple moving average of $31.71. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66.

BorgWarner (NYSE:BWA) last posted its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts’ consensus estimates of $1.06 by $0.15. The business had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company’s revenue was up 1.0% on a year-over-year basis. During the same period in the prior year, the business posted $1.19 earnings per share. Equities analysts forecast that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

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

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. This is an increase from BorgWarner’s previous quarterly dividend of $0.11. BorgWarner’s dividend payout ratio is 46.81%.

Wall Street Analysts Forecast Growth

BWA has been the subject of several research analyst reports. Evercore ISI lifted their price objective on BorgWarner from $38.00 to $42.00 and gave the stock an “outperform” rating in a report on Monday, August 4th. Guggenheim dropped their target price on BorgWarner from $38.00 to $33.00 and set a “buy” rating on the stock in a research report on Tuesday, April 22nd. JPMorgan Chase & Co. boosted their price target on BorgWarner from $43.00 to $45.00 and gave the company an “overweight” rating in a research note on Monday, August 4th. Barclays reiterated an “overweight” rating and issued a $45.00 price objective (up previously from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Finally, Bank of America raised their price objective on shares of BorgWarner from $35.00 to $41.00 and gave the stock a “buy” rating in a report on Monday, June 16th. Six analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $39.64.

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.