On June 1, 2023, Bank of America Corp DE announced that it had raised its holdings in auto parts company BorgWarner Inc. (NYSE:BWA) by 5.2% during the fourth quarter. The bank now owns 4,907,323 shares of BorgWarner, representing some 2.10% of the company’s total worth at $197,520,000.
BorgWarner had posted its earnings results on May 4th earlier in the year. Its Q1 earnings were lower than analysts’ estimates by four cents per share at $1.09 EPS. This came even as its revenue for the same quarter was up by almost eight percent at $4.18 billion compared to last year’s figures.
The auto parts firm expects to post a stable five dollars’ earning per share for this financial year as research analysts keep an optimistic view of the company’s future performance.
Recent developments regarding company directors and vice presidents reveal sales of considerable amounts alongside declining stock prices. Specifically mentioned is Director Alexis P. Michas’s sale of over seven thousand shares valued at about thirty-three thousand dollars each in mid-May which led to a total cash outflow nearing three hundred and nineteen thousand dollars combined with VP Stefan Demmerle’s sale of three thousand shares with a value close to fifty-one thousand dollars each preceding Michas’s sale by several days.
It remains unclear whether these particular insiders acted upon insider information or any other specific reason behind their decision to dispose of shares in the business they serve actively.
Investors may consider seeking professional advice before making investment decisions concerning companies with fluctuating stock values depending on insider trading activity.
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BorgWarner Inc. Sees Share Price Fluctuations Amid Institutional Changes and Insider Selling
On June 1, 2023, BorgWarner Inc.’s shares opened at $44.33 on the New York Stock Exchange. The auto parts company has seen fluctuations in its share price over the past year, with a 52-week low of $31.14 and a 52-week high of $51.14. Despite these fluctuations, several hedge funds and institutional investors have recently added to or reduced their stakes in BWA. TCI Wealth Advisors Inc., for example, increased their position in shares of BorgWarner by 485.5% during the fourth quarter of last year.
The company’s market cap is currently standing at $10.39 billion and its price-to-earnings ratio is at a relatively modest 10.84, while its price-to-earnings growth ratio is just 0.66. The beta measure suggests that the company’s stock is more volatile than the overall market.
In addition to changes made by institutional investors, several insiders have recently sold off portions of their shares in the company as well. Director Alexis P. Michas sold over seven thousand shares on May 17th for nearly $320 thousand in total value, while Vice President Stefan Demmerle sold three thousand shares back on March 3rd for a total transaction value of over $153 thousand.
BorgWarner also recently announced its quarterly dividend payout, which will be paid out to investors on Thursday, June 15th. Investors who were recorded on June 1st will receive a dividend payment of $0.17 per share – representing an annualized payout of $0.68 and yielding roughly 1.53%.
Looking at analyst ratings for BorgWarner’s stock reveals some mixed sentiment among sector experts: while four analysts rate it as “hold”, seven rate it as “buy” and one rates it as “strong buy”. According to Bloomberg data cited in recent reports, the current consensus rating is “moderate buy” – however, this could shift depending on any further news out of the company in the coming days or weeks.
