Gallo Partners LP Invests $1.54 Million in BorgWarner Inc. $BWA

Gallo Partners LP purchased a new position in BorgWarner Inc. (NYSE:BWA) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 23,145 shares of the auto parts company’s stock, valued at approximately $1,537,000. BorgWarner comprises 3.4% of Gallo Partners LP’s investment portfolio, making the stock its 11th largest position.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Acadian Asset Management LLC grew its stake in BorgWarner by 23.7% during the 1st quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company’s stock worth $257,000 after buying an additional 1,723 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in BorgWarner in the second quarter valued at $339,000. EverSource Wealth Advisors LLC lifted its stake in BorgWarner by 400.5% in the second quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company’s stock valued at $185,000 after buying an additional 4,426 shares during the last quarter. Marshall Wace LLP acquired a new position in shares of BorgWarner during the second quarter valued at $247,000. Finally, Cerity Partners LLC grew its position in shares of BorgWarner by 30.2% during the second quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company’s stock worth $4,816,000 after acquiring an additional 33,362 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

Insiders Place Their Bets

In other news, Director Rajesh Kalathur acquired 7,407 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was acquired at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the acquisition, the director directly owned 7,407 shares in the company, valued at $500,639.13. This represents a ? increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, CAO Amy B. Kulikowski sold 2,900 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total value of $198,940.00. Following the transaction, the chief accounting officer directly owned 9,725 shares of the company’s stock, valued at $667,135. This represents a 22.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.76% of the company’s stock.

BorgWarner Stock Down 0.1%

BWA stock opened at $67.74 on Monday. The firm’s 50-day moving average is $66.34 and its two-hundred day moving average is $61.66. The company has a market capitalization of $13.80 billion, a price-to-earnings ratio of 33.87, a price-to-earnings-growth ratio of 1.22 and a beta of 1.10. BorgWarner Inc. has a 52 week low of $40.50 and a 52 week high of $78.82. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67.

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

BorgWarner announced that its Board of Directors has authorized a share buyback plan on Wednesday, August 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to repurchase up to 7.7% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its shares are undervalued.

BorgWarner Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, September 1st. BorgWarner’s dividend payout ratio (DPR) is presently 34.00%.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Barclays increased their price objective on shares of BorgWarner from $83.00 to $85.00 and gave the stock an “overweight” rating in a report on Monday, August 10th. Morgan Stanley raised their target price on BorgWarner from $67.00 to $71.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. Wolfe Research reaffirmed an “outperform” rating and set a $95.00 target price on shares of BorgWarner in a research note on Wednesday, June 3rd. Sanford C. Bernstein upgraded BorgWarner to a “buy” rating in a research report on Wednesday, June 10th. Finally, TD Cowen increased their price target on BorgWarner from $67.00 to $68.00 and gave the stock a “hold” rating in a research note on Thursday, August 6th. Nine investment analysts have rated the stock with a Buy rating and six have given 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 $75.93.

BorgWarner Company 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.