Convergence Investment Partners LLC Reduces Position in BorgWarner Inc. $BWA

Convergence Investment Partners LLC lessened its position in shares of BorgWarner Inc. (NYSE:BWA) by 37.5% during the fourth quarter, HoldingsChannel reports. The institutional investor owned 23,532 shares of the auto parts company’s stock after selling 14,139 shares during the quarter. Convergence Investment Partners LLC’s holdings in BorgWarner were worth $1,060,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently added to or reduced their stakes in the company. Root Financial Partners LLC purchased a new position in BorgWarner during the 3rd quarter worth approximately $27,000. Sound Income Strategies LLC grew its stake in BorgWarner by 9,888.9% during the 4th quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company’s stock worth $42,000 after buying an additional 890 shares during the last quarter. Torren Management LLC purchased a new position in BorgWarner during the 4th quarter worth approximately $48,000. Olistico Wealth LLC purchased a new position in BorgWarner during the 4th quarter worth approximately $50,000. Finally, Quent Capital LLC purchased a new position in BorgWarner during the 3rd quarter worth approximately $55,000. Hedge funds and other institutional investors own 95.67% of the company’s stock.

BorgWarner Trading Down 6.5%

Shares of BWA stock opened at $63.07 on Friday. The business’s 50 day moving average is $55.35 and its two-hundred day moving average is $50.67. BorgWarner Inc. has a twelve month low of $31.83 and a twelve month high of $70.31. The company has a market capitalization of $12.94 billion, a P/E ratio of 37.32, a price-to-earnings-growth ratio of 1.22 and a beta of 1.00. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA) last announced its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.08. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The company had revenue of $3.53 billion for the quarter, compared to the consensus estimate of $3.50 billion. During the same period last year, the business posted $1.11 EPS. The company’s revenue was up .5% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Equities analysts forecast that BorgWarner Inc. will post 5.16 EPS for the current year.

BorgWarner Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Monday, June 1st. BorgWarner’s dividend payout ratio (DPR) is 40.24%.

BorgWarner News Roundup

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: JPMorgan raised its price target on BorgWarner to $75 and kept an overweight rating, signaling continued upside potential. Article Title
• Positive Sentiment: TD Cowen also increased its target on BWA, reinforcing the bullish analyst tone around the stock’s recent rebound and EV-related growth story. Article Title
• Positive Sentiment: BorgWarner’s latest earnings beat expectations on both EPS and revenue, and the company reaffirmed its full-year outlook, which supports the longer-term investment case.
• Neutral Sentiment: Recent coverage highlighted BorgWarner’s role in the EV supply chain and its rally’s link to broader index performance, which is more sentiment/context than a new catalyst. Article Title
• Negative Sentiment: New insider-sale disclosures from the CEO and multiple vice presidents are weighing on sentiment, especially after several recent transactions. Article Title
• Negative Sentiment: The broader equity selloff is hitting cyclical stocks harder than the market overall, which is pressuring BorgWarner even without fresh company-specific bad news.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on BWA shares. Weiss Ratings restated a “hold (c)” rating on shares of BorgWarner in a research note on Monday, April 20th. Wall Street Zen downgraded BorgWarner from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 9th. Wolfe Research upgraded BorgWarner from a “peer perform” rating to an “outperform” rating and set a $68.00 target price on the stock in a research note on Wednesday, March 25th. JPMorgan Chase & Co. lifted their target price on BorgWarner from $73.00 to $75.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Bank of America initiated coverage on BorgWarner in a research note on Wednesday, March 4th. They issued a “neutral” rating on the stock. Seven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, BorgWarner has a consensus rating of “Moderate Buy” and an average price target of $67.64.

Insider Buying and Selling

In other news, EVP Tania Wingfield sold 5,000 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $63.24, for a total value of $316,200.00. Following the completion of the sale, the executive vice president directly owned 35,365 shares of the company’s stock, valued at $2,236,482.60. This trade represents a 12.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Tonit M. Calaway sold 14,021 shares of the firm’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $51.46, for a total value of $721,520.66. Following the completion of the sale, the executive vice president directly owned 204,913 shares of the company’s stock, valued at $10,544,822.98. This represents a 6.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 108,216 shares of company stock worth $6,552,706. 0.76% of the stock is currently owned by insiders.

About BorgWarner

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.