Hill City Capital LP Takes $53.26 Billion Position in BorgWarner Inc. $BWA

Hill City Capital LP acquired a new stake in BorgWarner Inc. (NYSE:BWA) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 802,170 shares of the auto parts company’s stock, valued at approximately $53,264,088,000. BorgWarner makes up approximately 1.2% of Hill City Capital LP’s holdings, making the stock its 17th largest position.

Several other hedge funds have also added to or reduced their stakes in BWA. Clearstead Trust LLC acquired a new position in BorgWarner in the second quarter valued at about $28,000. Prosperity Bancshares Inc acquired a new stake in shares of BorgWarner during the fourth quarter worth about $37,000. Ceredex Value Advisors LLC acquired a new stake in shares of BorgWarner during the second quarter worth about $40,000. Torren Management LLC bought a new position in shares of BorgWarner during the 4th quarter valued at about $48,000. Finally, Fiduciary Financial Advisors acquired a new position in shares of BorgWarner in the 2nd quarter valued at approximately $49,000. Institutional investors and hedge funds own 95.67% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on BWA. Wells Fargo & Company increased their target price on BorgWarner from $68.00 to $83.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 2nd. Weiss Ratings upgraded shares of BorgWarner from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, June 29th. Morgan Stanley increased their price objective on shares of BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. UBS Group upgraded shares of BorgWarner from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $61.00 to $95.00 in a report on Wednesday, June 10th. Finally, Wolfe Research reaffirmed an “outperform” rating and issued a $95.00 price objective on shares of BorgWarner in a research report on Wednesday, June 3rd. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, BorgWarner has an average rating of “Moderate Buy” and a consensus price target of $75.93.

Insider Transactions at BorgWarner

In related news, Director Rajesh Kalathur purchased 7,407 shares of the firm’s stock in a transaction on Wednesday, August 19th. The stock was purchased at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the purchase, the director directly owned 7,407 shares in the company, valued at $500,639.13. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Amy B. Kulikowski sold 2,900 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the sale, the chief accounting officer owned 9,725 shares in the company, valued at approximately $667,135. This represents a 22.97% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.76% of the stock is currently owned by insiders.

Key Stories Impacting BorgWarner

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Zacks raised several forward earnings forecasts. Estimates increased for FY2026 EPS to $5.19 from $5.15, FY2027 EPS to $5.82 from $5.68, and FY2028 EPS to $6.35 from $6.00. Quarterly increases included Q1 2027, Q2 2027, Q3 2027, Q4 2027, Q1 2028 and Q2 2028, signaling improved expectations for BorgWarner’s longer-term growth and profitability. Zacks Research earnings estimate updates
• Positive Sentiment: Long-term growth positioning may support investor interest. A Zacks analysis identified BorgWarner as a potentially attractive long-term growth stock based on its Style Scores, which are designed to highlight companies matching specific investment approaches. Why BorgWarner is a Top Growth Stock for the Long-Term
• Neutral Sentiment: The revisions were mixed for late 2026. Zacks lowered its Q3 2026 EPS forecast to $1.22 from $1.27 and its Q4 2026 forecast to $1.31 from $1.39. However, the full-year 2026 estimate was raised to $5.19, matching consensus, suggesting the near-term cuts were offset by stronger expectations elsewhere.
• Positive Sentiment: Recent operating performance provides support for the outlook. BorgWarner’s latest reported quarter exceeded expectations, with EPS of $1.42 versus the $1.28 consensus forecast and revenue of $3.65 billion versus the $3.58 billion estimate. Revenue also edged higher year over year, while full-year 2026 guidance remains $5.05–$5.30 in EPS.

BorgWarner Trading Up 0.2%

NYSE BWA opened at $64.82 on Friday. The stock has a market capitalization of $13.20 billion, a price-to-earnings ratio of 32.41, a PEG ratio of 1.16 and a beta of 1.10. The stock’s 50 day moving average price is $65.75 and its two-hundred day moving average price is $62.06. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. BorgWarner Inc. has a 52 week low of $40.50 and a 52 week high of $78.82.

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 analysts’ consensus estimates of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The company had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.58 billion. During the same period last year, the company earned $1.21 earnings per share. The firm’s revenue was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, analysts anticipate that BorgWarner Inc. will post 5.2 earnings per share for the current fiscal year.

BorgWarner Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a $0.17 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.0%. BorgWarner’s payout ratio is currently 34.00%.

BorgWarner declared that its board has authorized a stock repurchase plan on Wednesday, August 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to repurchase up to 7.7% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its shares are undervalued.

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.