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

Key Points

• Hill City Capital initiated a BorgWarner position of 802,170 shares, representing about 0.39% of the company and 1.2% of the fund’s portfolio. The filing lists the stake at $53.26 billion, though the stated share count and market price imply a value of approximately $53.3 million.
• BorgWarner’s latest quarter exceeded expectations, with EPS of $1.42 versus the $1.28 consensus and revenue of $3.65 billion versus $3.58 billion expected. Zacks raised several longer-term earnings forecasts, while analysts maintain a “Moderate Buy” consensus and a $75.93 average price target.
• The company authorized a $1 billion share-repurchase program, covering up to 7.7% of outstanding shares, and declared a quarterly dividend of $0.17. Institutional investors own 95.67% of BorgWarner, highlighting strong participation by funds and hedge funds.

Hill City Capital LP purchased a new position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 802,170 shares of the auto parts company's stock, valued at approximately $53,264,088,000. BorgWarner comprises approximately 1.2% of Hill City Capital LP's portfolio, making the stock its 17th largest position. Hill City Capital LP owned about 0.39% of BorgWarner at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. BlackRock Inc. bought a new stake in shares of BorgWarner during the second quarter worth $1,678,187,000. Dimensional Fund Advisors LP raised its holdings in shares of BorgWarner by 1.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company's stock valued at $538,996,000 after buying an additional 178,853 shares during the last quarter. AQR Capital Management LLC lifted its position in BorgWarner by 22.7% during the 4th quarter. AQR Capital Management LLC now owns 9,222,352 shares of the auto parts company's stock worth $415,559,000 after buying an additional 1,703,576 shares in the last quarter. State Street Corp grew its holdings in BorgWarner by 5.3% during the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company's stock worth $255,578,000 after acquiring an additional 380,942 shares during the last quarter. Finally, LSV Asset Management grew its holdings in BorgWarner by 6.7% during the 4th quarter. LSV Asset Management now owns 6,446,541 shares of the auto parts company's stock worth $290,481,000 after acquiring an additional 402,887 shares during the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

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.

Insiders Place Their Bets

In related news, Director Rajesh Kalathur bought 7,407 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were purchased at an average price of $67.59 per share, with a total value of $500,639.13. Following the completion of the purchase, the director owned 7,407 shares of the company's stock, valued at $500,639.13. This represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CAO Amy B. Kulikowski sold 2,900 shares of the firm's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the transaction, the chief accounting officer owned 9,725 shares in the company, valued at approximately $667,135. This trade 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 owned by insiders.

Analyst Ratings Changes

A number of brokerages have weighed in on BWA. TD Cowen boosted their target price on shares of BorgWarner from $67.00 to $68.00 and gave the stock a "hold" rating in a research note on Thursday, August 6th. Barclays raised their price target on shares of BorgWarner from $83.00 to $85.00 and gave the company an "overweight" rating in a report on Monday, August 10th. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on BorgWarner in a research report on Thursday, August 6th. Wolfe Research reissued an "outperform" rating and issued a $95.00 target price on shares of BorgWarner in a research note on Wednesday, June 3rd. Finally, Wells Fargo & Company boosted their target price on BorgWarner from $68.00 to $83.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 2nd. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, BorgWarner has a consensus rating of "Moderate Buy" and a consensus price target of $75.93.

BorgWarner Stock Up 0.2%

Shares of NYSE:BWA opened at $64.82 on Friday. 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 stock has a market cap of $13.20 billion, a price-to-earnings ratio of 32.41, a P/E/G ratio of 1.16 and a beta of 1.10. The company has a 50 day moving average of $65.75 and a 200-day moving average of $62.06. BorgWarner Inc. has a one year low of $40.50 and a one year high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The business had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.58 billion. During the same period in the prior year, the business posted $1.21 earnings per share. BorgWarner'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. On average, sell-side analysts forecast that BorgWarner Inc. will post 5.2 earnings per share for the current year.

BorgWarner announced that its Board of Directors has authorized a share repurchase plan on Wednesday, August 5th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the auto parts company to purchase up to 7.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its stock is undervalued.

BorgWarner Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Tuesday, September 1st. BorgWarner's dividend payout ratio (DPR) is currently 34.00%.

About BorgWarner

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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