Neo Ivy Capital Management Invests $3.03 Million in BorgWarner Inc. $BWA

Neo Ivy Capital Management bought a new stake in BorgWarner Inc. (NYSE:BWA) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 90,347 shares of the auto parts company’s stock, valued at approximately $3,025,000. BorgWarner accounts for 1.0% of Neo Ivy Capital Management’s portfolio, making the stock its 9th biggest position.

A number of other hedge funds have also bought and sold shares of the business. Blackston Financial Advisory Group LLC raised its stake in BorgWarner by 3.4% in the 2nd quarter. Blackston Financial Advisory Group LLC now owns 7,970 shares of the auto parts company’s stock worth $267,000 after purchasing an additional 265 shares in the last quarter. Trajan Wealth LLC grew its position in shares of BorgWarner by 4.6% during the 1st quarter. Trajan Wealth LLC now owns 7,978 shares of the auto parts company’s stock worth $229,000 after purchasing an additional 353 shares in the last quarter. Assetmark Inc. increased its holdings in shares of BorgWarner by 81.8% during the second quarter. Assetmark Inc. now owns 809 shares of the auto parts company’s stock worth $27,000 after purchasing an additional 364 shares during the period. Tectonic Advisors LLC raised its position in shares of BorgWarner by 2.3% in the second quarter. Tectonic Advisors LLC now owns 17,002 shares of the auto parts company’s stock valued at $569,000 after buying an additional 388 shares in the last quarter. Finally, Strengthening Families & Communities LLC boosted its stake in shares of BorgWarner by 14.6% in the first quarter. Strengthening Families & Communities LLC now owns 3,301 shares of the auto parts company’s stock valued at $95,000 after buying an additional 421 shares during the period. 95.67% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

BWA has been the subject of a number of recent analyst reports. UBS Group upped their target price on BorgWarner from $43.00 to $46.00 and gave the company a “neutral” rating in a research report on Monday, October 6th. Evercore ISI raised their target price on shares of BorgWarner from $42.00 to $50.00 and gave the company an “outperform” rating in a report on Monday, October 13th. Baird R W raised shares of BorgWarner from a “hold” rating to a “strong-buy” rating in a report on Wednesday, September 3rd. Barclays lifted their price objective on shares of BorgWarner from $45.00 to $55.00 and gave the company an “overweight” rating in a research note on Friday, October 10th. Finally, Wells Fargo & Company upped their target price on BorgWarner from $50.00 to $54.00 and gave the stock an “overweight” rating in a research note on Thursday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $45.85.

BorgWarner Price Performance

Shares of NYSE:BWA opened at $40.92 on Friday. The company has a market cap of $8.75 billion, a price-to-earnings ratio of 43.53, a PEG ratio of 1.58 and a beta of 1.06. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. The firm has a 50 day simple moving average of $43.63 and a 200 day simple moving average of $38.81. BorgWarner Inc. has a one year low of $24.40 and a one year high of $46.39.

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

BorgWarner Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Monday, December 1st will be given a $0.17 dividend. The ex-dividend date is Monday, December 1st. This represents a $0.68 annualized dividend and a yield of 1.7%. BorgWarner’s dividend payout ratio (DPR) is currently 107.94%.

BorgWarner declared that its board has initiated 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 shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its shares are undervalued.

Insider Activity

In related news, VP Stefan Demmerle sold 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 12th. The shares were sold at an average price of $46.00, for a total value of $230,000.00. Following the completion of the transaction, the vice president owned 204,040 shares in the company, valued at $9,385,840. This trade represents a 2.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction that occurred 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 sale, the director owned 78,903 shares in the company, valued at approximately $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 31,972 shares of company stock valued at $1,425,479. 0.45% of the stock is currently owned by corporate insiders.

BorgWarner Profile

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.