Alyeska Investment Group L.P. Acquires 611,380 Shares of BorgWarner Inc. $BWA

Key Points

• Alyeska Investment Group increased its BorgWarner stake by 86.7% in the second quarter, acquiring 611,380 shares for a total holding of 1.32 million shares valued at approximately $87.4 million. Institutional investors collectively own 95.67% of the company.
• BorgWarner exceeded quarterly expectations with EPS of $1.42 versus the $1.28 consensus and revenue of $3.65 billion, while launching a $1 billion share-repurchase program covering up to 7.7% of outstanding shares.
• Analyst sentiment is generally positive, with nine Buy ratings and six Holds producing a “Moderate Buy” consensus and a $75.93 target price. However, near-term EPS estimates were reduced even as longer-term earnings forecasts improved.

Alyeska Investment Group L.P. lifted its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 86.7% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,316,321 shares of the auto parts company's stock after buying an additional 611,380 shares during the quarter. Alyeska Investment Group L.P. owned approximately 0.65% of BorgWarner worth $87,404,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Clearstead Trust LLC purchased a new position in shares of BorgWarner during the second quarter valued at approximately $28,000. Prosperity Bancshares Inc purchased a new stake in shares of BorgWarner in the 4th quarter worth approximately $37,000. Ceredex Value Advisors LLC purchased a new stake in shares of BorgWarner in the 2nd quarter worth approximately $40,000. Fiduciary Financial Advisors bought a new position in BorgWarner during the 2nd quarter valued at approximately $49,000. Finally, Cedar Mountain Advisors LLC purchased a new position in BorgWarner during the first quarter valued at $55,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other BorgWarner news, CAO Amy B. Kulikowski sold 2,900 shares of the business's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total transaction of $198,940.00. Following the completion of the sale, the chief accounting officer owned 9,725 shares of the company's stock, valued at approximately $667,135. The trade was a 22.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Rajesh Kalathur purchased 7,407 shares of BorgWarner stock in a transaction on Wednesday, August 19th. The stock was bought at an average price of $67.59 per share, with a total value of $500,639.13. Following the transaction, the director owned 7,407 shares of the company's stock, valued at approximately $500,639.13. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.76% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Wall Street Zen upgraded shares of BorgWarner from a "hold" rating to a "buy" rating in a research note on Saturday, June 27th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $84.00 target price on shares of BorgWarner in a report on Thursday, June 11th. UBS Group upgraded shares of BorgWarner from a "neutral" rating to a "buy" rating and upped their target price for the stock from $61.00 to $95.00 in a research note on Wednesday, June 10th. Wolfe Research reiterated an "outperform" rating and set a $95.00 price target on shares of BorgWarner in a report on Wednesday, June 3rd. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of BorgWarner in a research report on Thursday, August 6th. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, BorgWarner has an average rating of "Moderate Buy" and a consensus target price of $75.93.

Key Stories Impacting BorgWarner

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Improved long-term earnings outlook: Zacks lifted its FY2026 EPS forecast to $5.19 from $5.15, FY2027 to $5.82 from $5.68, and FY2028 to $6.35 from $6.00. Estimates for multiple 2027 and 2028 quarters were also increased, signaling improving expectations for BorgWarner’s longer-term growth and profitability. MarketBeat analyst estimate revisions
• Positive Sentiment: Growth-stock positioning: A Zacks article identified BWA as a potentially attractive long-term growth stock based on the firm’s Style Scores, which could support investor interest in the auto-parts supplier. Why BorgWarner is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Recent operating performance provides support: BorgWarner’s latest reported quarter exceeded analyst expectations, with EPS of $1.42 versus a $1.28 consensus and revenue of $3.65 billion versus $3.58 billion. However, year-over-year revenue growth was limited, and the company’s net margin remained relatively low at 2.89%.
• Negative Sentiment: Near-term earnings reductions: Zacks cut its Q3 2026 EPS forecast to $1.22 from $1.27 and its Q4 2026 forecast to $1.31 from $1.39. The downward revisions suggest some near-term pressure despite the improved full-year and longer-term outlook, creating a mixed earnings signal for investors. BorgWarner earnings estimate revisions

BorgWarner Price Performance

NYSE BWA opened at $64.25 on Friday. The stock has a market capitalization of $13.09 billion, a price-to-earnings ratio of 32.12, a PEG ratio of 1.15 and a beta of 1.10. BorgWarner Inc. has a 1-year low of $40.50 and a 1-year high of $78.82. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76. The business's fifty day moving average price is $65.59 and its 200-day moving average price is $62.07.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, topping the consensus estimate of $1.28 by $0.14. The company had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.58 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.BorgWarner's revenue was up .3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, equities analysts predict that BorgWarner Inc. will post 5.2 earnings per share for the current year.

BorgWarner announced that its board has initiated a stock buyback program on Wednesday, August 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to purchase up to 7.7% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's management believes its stock is undervalued.

BorgWarner Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Tuesday, September 1st. BorgWarner's dividend payout ratio (DPR) is currently 34.00%.

BorgWarner 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.

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