Empowered Funds LLC Makes New Investment in BorgWarner Inc. $BWA

Key Points

• Empowered Funds LLC acquired 279,723 BorgWarner shares worth approximately $18.6 million, giving it a 0.14% stake; institutional investors collectively own 95.67% of the company.
• BorgWarner beat quarterly expectations with EPS of $1.42 versus $1.28 expected and revenue of $3.65 billion, while maintaining fiscal 2026 guidance of $5.05–$5.30 EPS.
• The company announced a $1 billion share-repurchase program covering up to 7.7% of shares and declared a quarterly dividend of $0.17 per share; analysts maintain a “Moderate Buy” consensus with a $75.93 average price target.

Empowered Funds LLC acquired a new stake in shares of BorgWarner Inc. (NYSE:BWA - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 279,723 shares of the auto parts company's stock, valued at approximately $18,574,000. Empowered Funds LLC owned 0.14% of BorgWarner as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently modified their holdings of the business. Inspire Investing LLC raised its holdings in BorgWarner by 2.8% during the 4th quarter. Inspire Investing LLC now owns 7,223 shares of the auto parts company's stock worth $325,000 after buying an additional 195 shares during the period. Lazard Asset Management LLC raised its stake in BorgWarner by 1.0% in the fourth quarter. Lazard Asset Management LLC now owns 21,719 shares of the auto parts company's stock valued at $979,000 after buying an additional 206 shares during the period. Arjuna Capital increased its holdings in shares of BorgWarner by 0.6% in the fourth quarter. Arjuna Capital now owns 34,932 shares of the auto parts company's stock valued at $1,574,000 after purchasing an additional 215 shares during the last quarter. Fifth Third Wealth Advisors LLC grew its stake in BorgWarner by 3.2% in the 1st quarter. Fifth Third Wealth Advisors LLC now owns 7,064 shares of the auto parts company's stock valued at $383,000 after buying an additional 216 shares during the last quarter. Finally, Ariadne Wealth Management LP raised its holdings in BorgWarner by 3.8% in the 1st quarter. Ariadne Wealth Management LP now owns 5,958 shares of the auto parts company's stock valued at $323,000 after acquiring an additional 218 shares during the period. 95.67% of the stock is currently owned by institutional investors.

BorgWarner Price Performance

Shares of BWA stock opened at $64.25 on Friday. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. BorgWarner Inc. has a twelve month low of $40.50 and a twelve month high of $78.82. The company has a market cap of $13.09 billion, a P/E ratio of 32.12, a P/E/G ratio of 1.16 and a beta of 1.10. The business has a fifty day simple moving average of $65.59 and a 200 day simple moving average of $62.07.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results 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. The firm had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.58 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.The business's revenue for the quarter was up .3% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, sell-side analysts forecast that BorgWarner Inc. will post 5.2 EPS for the current fiscal year.

BorgWarner Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Tuesday, September 1st. BorgWarner's dividend payout ratio is currently 34.00%.

BorgWarner declared that its Board of Directors has initiated a share repurchase 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 reacquire up to 7.7% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on BWA shares. Barclays upped their target price on BorgWarner from $83.00 to $85.00 and gave the company an "overweight" rating in a research report on Monday, August 10th. TD Cowen boosted their price target on BorgWarner from $67.00 to $68.00 and gave the company a "hold" rating in a research note on Thursday, August 6th. Sanford C. Bernstein raised BorgWarner to a "buy" rating in a report on Wednesday, June 10th. UBS Group upgraded BorgWarner from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $61.00 to $95.00 in a research report on Wednesday, June 10th. Finally, Wells Fargo & Company lifted their target price on BorgWarner from $68.00 to $83.00 and gave the stock an "overweight" rating in a report on Tuesday, June 2nd. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $75.93.

Insider Buying and Selling

In other BorgWarner news, CAO Amy B. Kulikowski sold 2,900 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were 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 $667,135. This trade represents a 22.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Rajesh Kalathur bought 7,407 shares of the firm's stock in a transaction on Wednesday, August 19th. The shares were bought at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the purchase, the director owned 7,407 shares of the company's stock, valued at approximately $500,639.13. The trade was a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.76% of the stock is owned by corporate insiders.

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 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.

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