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

Hill City Capital LP purchased a new position in shares of BorgWarner Inc. (NYSE:BWA) 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) 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.