Swiss private bank, Vontobel Holding Ltd., has significantly increased its stake in BorgWarner Inc., a leading auto parts manufacturer, according to the latest securities filing with the US Securities and Exchange Commission (SEC). Vontobel now holds 26,252 shares of BorgWarner stock after purchasing an additional 13,333 shares during the first quarter. This represents a staggering 103.2% increase in their holdings. The total value of Vontobel’s stake in BorgWarner is estimated to be around $1,289,000.
This move by Vontobel comes amidst various recent developments within BorgWarner. On May 17th, Director Alexis P. Michas sold 7,173 shares of the company’s stock at an average price of $44.45, amounting to a total value of $318,839.85. After this transaction, Michas currently holds 76,441 shares valued at approximately $3,397,802.45. Another notable insider sale occurred on June 14th when VP Stefan Demmerle divested himself of 5,000 shares at an average price of $47.61 each, for a total value of $238,050.00.
These sales were disclosed in separate filings with the SEC and are available for public viewing. Alongside these transactions by insiders at BorgWarner, it should be noted that the company witnessed overall insider sales totaling 12,383 shares valued at $566,697 within the last three months alone. Company insiders currently own approximately 0.45% of BorgWarner’s outstanding shares.
On Thursday morning trading session at NYSE (New York Stock Exchange), BWA stock opened at $47.71 per share marking an impressive year-to-date performance by BorgWarner despite ongoing market turbulence caused by global economic uncertainties associated with COVID-19 pandemic impacts on businesses across various industries globally.
BorgWarner Inc. is a key player in the auto parts industry, manufacturing components for drivetrain systems, automatic transmissions, and power management products. The company has shown remarkable resilience amid challenging market conditions throughout the previous year. With a market capitalization of $11.18 billion and a beta of 1.42, BorgWarner shares have exhibited a wide price range over the past twelve months, with their 52-week low recorded at $31.14 and their 52-week high at $51.14.
BorgWarner’s performance is closely followed by financial analysts and investors who are attracted to the company’s attractive price-to-earnings-growth (PEG) ratio of 0.65. This indicates that investors can potentially acquire shares at a relatively lower price compared to its expected growth rate.
Furthermore, BorgWarner maintains strong liquidity positions with both current and quick ratios comfortably above industry standards. The firm’s current ratio stands at 1.59 while its quick ratio is measured at 1.16, which demonstrates the company’s ability to easily convert current assets into cash or equivalents if needed.
Additionally, BorgWarner boasts a favorable debt-to-equity ratio of 0.54, indicating prudent financial management practices as it strikes an optimal balance between borrowed funds and shareholders’ equity.
As Vontobel Holding Ltd.’s latest filing reveals its increased stake in BorgWarner, it is evident that this move aligns with investor sentiment towards the promising future prospects of the auto parts manufacturer amidst recent insider transactions within the company.
Despite ongoing market uncertainty driven by various macroeconomic factors such as international trade tensions and supply chain disruptions caused by the pandemic, BorgWarner has managed to exhibit robust performance and attract significant attention from investors globally.
It remains to be seen how these recent developments will impact Vontobel Holding Ltd.’s portfolio and whether other institutional investors will follow suit in increasing their holdings in BorgWarner Inc. Nonetheless, the market will undoubtedly keep a close eye on BorgWarner’s performance as it navigates through these unprecedented times in a highly competitive industry.
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BorgWarner Sees Changes in Positions and Holdings, Receives Ratings and Target Price Adjustments, Reports Slightly Below Expected Earnings, Increases Revenue, and Declares Quarterly Dividend
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”BWA” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]BorgWarner, a leading auto parts company, has recently seen changes in its positions and holdings from several hedge funds and institutional investors. Edge Capital Group LLC acquired a new position in BorgWarner during the fourth quarter, while Alpha Omega Wealth Management LLC boosted its holdings by 9.0%. Additionally, Arizona State Retirement System and Fifth Third Bancorp both increased their holdings in BorgWarner during the fourth quarter. Vident Investment Advisory LLC also saw an increase in its holdings.
In terms of analysts’ comments, Wells Fargo & Company decreased the price target on BorgWarner shares from $56.00 to $55.00 and gave the company an “overweight” rating. StockNews.com gave BorgWarner a “buy” rating, while Citigroup reduced its target price on the stock from $53.00 to $50.00.
Deutsche Bank Aktiengesellschaft also lowered its target price on BorgWarner from $58.00 to $56.00, and The Goldman Sachs Group raised its price target from $45.00 to $51.00.
In recent news regarding insider trading, Director Alexis P. Michas sold 7,173 shares of BorgWarner stock for an average price of $44.45 per share, generating a total value of $318,839.85. Vice President Stefan Demmerle also sold 5,000 shares of the company’s stock for an average price of $47.61 per share.
When it comes to quarterly earnings results released on May 4th, BorgWarner reported earnings per share (EPS) of $1.09 for the quarter which was slightly below the consensus estimate of $1.13 EPS.
The firm had revenue of $4.18 billion during the quarter compared to a consensus estimate of $4.16 billion with a net margin of 5.97% and a return on equity (ROE) of 14.85%. The company’s quarterly revenue saw a 7.9% increase compared to the same quarter last year.
BorgWarner recently declared a quarterly dividend that was paid on June 15th. Shareholders of record on June 1st received $0.17 dividend per share, resulting in an annualized dividend of $0.68 and a yield of 1.43%.
In conclusion, BorgWarner has experienced various changes in its positions and holdings from hedge funds and institutional investors, as well as receiving ratings and target price adjustments from analysts. The company also reported earnings slightly below expectations but had an increase in revenue compared to the previous year. Additionally, a quarterly dividend was issued to shareholders.
