Redwood Investment Management LLC Invests $1.17 Million in BorgWarner Inc. $BWA

Key Points

• Redwood Investment Management acquired 17,643 BorgWarner shares worth approximately $1.17 million in the second quarter. Institutional investors collectively own 95.67% of the company’s stock.
• BorgWarner exceeded its latest quarterly expectations, reporting $1.42 in EPS versus the $1.28 consensus and revenue of $3.65 billion. The company also authorized a $1 billion share-repurchase program and maintained its $0.17 quarterly dividend.
• Longer-term earnings estimates improved, but Zacks lowered its Q3 and Q4 2026 EPS forecasts. Analysts maintain a “Moderate Buy” consensus with an average price target of $75.93, above the reported $64.66 opening price.

Redwood Investment Management LLC acquired a new stake in BorgWarner Inc. (NYSE:BWA - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor acquired 17,643 shares of the auto parts company's stock, valued at approximately $1,171,000.

Several other institutional investors and hedge funds also recently made changes to their positions in BWA. Inspire Investing LLC increased its holdings in shares of BorgWarner by 2.8% in the fourth 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 lifted its stake in shares of BorgWarner by 1.0% in the 4th quarter. Lazard Asset Management LLC now owns 21,719 shares of the auto parts company's stock valued at $979,000 after acquiring an additional 206 shares during the last quarter. Arjuna Capital boosted its holdings in BorgWarner by 0.6% during the 4th quarter. Arjuna Capital now owns 34,932 shares of the auto parts company's stock valued at $1,574,000 after acquiring an additional 215 shares during the period. Fifth Third Wealth Advisors LLC boosted its holdings in BorgWarner by 3.2% during 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 acquiring an additional 216 shares during the period. Finally, Ariadne Wealth Management LP grew its position in BorgWarner by 3.8% during the 1st quarter. Ariadne Wealth Management LP now owns 5,958 shares of the auto parts company's stock worth $323,000 after acquiring an additional 218 shares during the last quarter. Institutional investors own 95.67% of the company's stock.

BorgWarner News Summary

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $5.19 from $5.15, matching the broader consensus estimate. Longer-term expectations also improved, with FY2027 EPS increasing to $5.82 from $5.68 and FY2028 EPS rising to $6.35 from $6.00. BorgWarner analyst estimates
• Positive Sentiment: The analyst lifted estimates for several future quarters, including Q1 2027 EPS to $1.35 from $1.34, Q2 2027 EPS to $1.47 from $1.44, Q3 2027 EPS to $1.48 from $1.42, Q4 2027 EPS to $1.51 from $1.48, Q1 2028 EPS to $1.46 from $1.42, and Q2 2028 EPS to $1.61 from $1.50. These changes suggest improved longer-term earnings prospects.
• Neutral Sentiment: The revisions do not change the current full-year consensus of $5.19 EPS, while the stock’s valuation remains relatively demanding at roughly 32 times earnings. Investors may therefore look for stronger near-term results or guidance before assigning additional upside.
• Negative Sentiment: Zacks reduced its Q3 2026 EPS forecast to $1.22 from $1.27 and its Q4 2026 forecast to $1.31 from $1.39. The cuts indicate softer near-term earnings expectations and likely help explain the pressure on BWA despite the more constructive outlook for 2027 and 2028.

BorgWarner Price Performance

Shares of BorgWarner stock opened at $64.66 on Thursday. The business has a 50 day moving average of $65.89 and a 200 day moving average of $61.97. BorgWarner Inc. has a 52 week low of $40.50 and a 52 week high of $78.82. The company has a market cap of $13.17 billion, a PE ratio of 32.33, a P/E/G ratio of 1.17 and a beta of 1.10. 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 (NYSE:BWA - Get Free Report) last released its quarterly earnings results 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 analysts' expectations of $3.58 billion. During the same quarter in the previous year, the business posted $1.21 earnings per share. The firm's revenue for the quarter 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, equities research analysts forecast that BorgWarner Inc. will post 5.19 earnings per share for the current year.

BorgWarner Announces Dividend

The business also recently announced 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. 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 1.1%. BorgWarner's payout ratio is presently 34.00%.

BorgWarner declared that its board 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 stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Analyst Ratings Changes

Several analysts have weighed in on the company. Wall Street Zen upgraded BorgWarner from a "hold" rating to a "buy" rating in a research report on Saturday, June 27th. The Goldman Sachs Group restated a "buy" rating and issued a $84.00 target price on shares of BorgWarner in a report on Thursday, June 11th. Robert W. Baird set a $79.00 target price on shares of BorgWarner in a research note on Thursday, August 6th. 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 stock. Based on data from MarketBeat, BorgWarner has an average rating of "Moderate Buy" and an average target price of $75.93.

Insider Activity

In other BorgWarner news, CAO Amy B. Kulikowski sold 2,900 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total value of $198,940.00. Following the completion of the sale, the chief accounting officer directly 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 acquired 7,407 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were purchased at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the transaction, the director owned 7,407 shares in the company, valued at approximately $500,639.13. This represents 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 insiders.

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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