Hill City Capital LP Acquires Shares of 802,170 BorgWarner Inc. $BWA

Hill City Capital LP acquired a new stake in BorgWarner Inc. (NYSE:BWA) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 802,170 shares of the auto parts company’s stock, valued at approximately $53,264,000. BorgWarner comprises about 1.4% of Hill City Capital LP’s portfolio, making the stock its 16th largest position.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. Acadian Asset Management LLC boosted its holdings in BorgWarner by 23.7% in the first quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company’s stock valued at $257,000 after purchasing an additional 1,723 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in BorgWarner during the 2nd quarter worth about $339,000. EverSource Wealth Advisors LLC raised its stake in shares of BorgWarner by 400.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company’s stock valued at $185,000 after buying an additional 4,426 shares during the last quarter. Marshall Wace LLP acquired a new position in shares of BorgWarner in the 2nd quarter valued at about $247,000. Finally, Cerity Partners LLC lifted its holdings in shares of BorgWarner by 30.2% in the 2nd quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company’s stock valued at $4,816,000 after buying an additional 33,362 shares during the period. Institutional investors and hedge funds own 95.67% of the company’s stock.

Insider Transactions at BorgWarner

In related news, Director Rajesh Kalathur purchased 7,407 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The shares were purchased at an average cost of $67.59 per share, with a total value of $500,639.13. Following 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 filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Amy B. Kulikowski sold 2,900 shares of BorgWarner 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 completion of the sale, the chief accounting officer owned 9,725 shares in the company, valued at approximately $667,135. The trade was a 22.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.76% of the company’s stock.

BorgWarner Price Performance

Shares of NYSE BWA opened at $67.74 on Monday. The firm has a market cap of $13.80 billion, a PE ratio of 33.87, a PEG ratio of 1.22 and a beta of 1.10. The firm has a fifty day moving average of $66.34 and a 200 day moving average of $61.66. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. BorgWarner Inc. has a one year low of $40.50 and a one year high of $78.82.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) 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 the consensus estimate of $3.58 billion. During the same period last year, the firm posted $1.21 earnings per share. The company’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. As a group, research analysts predict that BorgWarner Inc. will post 5.19 EPS for the current fiscal year.

BorgWarner announced that its Board of Directors has initiated a stock repurchase program on Wednesday, August 5th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the auto parts company to reacquire up to 7.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

BorgWarner Announces Dividend

The business also recently declared 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 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Tuesday, September 1st. BorgWarner’s dividend payout ratio is 34.00%.

Analyst Ratings Changes

A number of brokerages have recently commented on BWA. Wells Fargo & Company upped their target price on BorgWarner from $68.00 to $83.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 2nd. UBS Group upgraded BorgWarner from a “neutral” rating to a “buy” rating and lifted their price target for the company from $61.00 to $95.00 in a research report on Wednesday, June 10th. TD Cowen boosted their price target on BorgWarner from $67.00 to $68.00 and gave the company a “hold” rating in a report on Thursday, August 6th. Sanford C. Bernstein upgraded BorgWarner to a “buy” rating in a research report on Wednesday, June 10th. Finally, Robert W. Baird set a $79.00 price objective on shares of BorgWarner in a research note on Thursday, August 6th. Nine analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, BorgWarner presently has a consensus rating of “Moderate Buy” and an average price target of $75.93.

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.