Canada Pension Plan Investment Board Makes New $15.61 Million Investment in BorgWarner Inc. $BWA

Canada Pension Plan Investment Board bought a new stake in shares of BorgWarner Inc. (NYSE:BWA) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 235,100 shares of the auto parts company’s stock, valued at approximately $15,611,000.

Several other large investors have also recently made changes to their positions in BWA. Castleark Management LLC bought a new stake in shares of BorgWarner in the 2nd quarter worth approximately $10,539,000. Nicholas Investment Partners LP bought a new position in BorgWarner during the 2nd quarter valued at approximately $231,000. Legal & General Group Plc purchased a new position in BorgWarner during the second quarter valued at $20,829,000. The Manufacturers Life Insurance Company bought a new stake in BorgWarner in the second quarter worth $9,651,000. Finally, Jones Financial Companies Lllp bought a new stake in BorgWarner in the second quarter worth $57,000. 95.67% of the stock is currently owned by hedge funds and other institutional investors.

Key BorgWarner News

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 Trading Down 0.8%

Shares of BorgWarner stock opened at $64.25 on Friday. The company’s fifty day simple moving average is $65.59 and its 200-day simple moving average is $62.07. The stock has a market capitalization of $13.09 billion, a PE ratio of 32.12, a P/E/G ratio of 1.16 and a beta of 1.10. BorgWarner Inc. has a 1-year low of $40.50 and a 1-year high of $78.82. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76.

BorgWarner (NYSE:BWA) last issued its quarterly earnings data 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. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The firm had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.58 billion. During the same quarter in the previous year, the firm posted $1.21 EPS. The company’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 analysts anticipate that BorgWarner Inc. will post 5.2 earnings per share for the current year.

BorgWarner Announces Dividend

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

BorgWarner announced that its Board of Directors has initiated a share buyback 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 repurchase up to 7.7% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Morgan Stanley raised their price target on BorgWarner from $67.00 to $71.00 and gave the company an “equal weight” rating in a report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of BorgWarner in a research note on Thursday, August 6th. Barclays raised their price objective on shares of BorgWarner from $83.00 to $85.00 and gave the company an “overweight” rating in a research note on Monday, August 10th. UBS Group raised shares of BorgWarner from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $61.00 to $95.00 in a report on Wednesday, June 10th. Finally, Robert W. Baird set a $79.00 target price 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 issued a Hold rating to the company’s stock. Based on data from MarketBeat, BorgWarner has an average rating of “Moderate Buy” and a consensus price target of $75.93.

Insider Activity

In related news, Director Rajesh Kalathur acquired 7,407 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was 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 in the company, valued at $500,639.13. The trade was a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Amy B. Kulikowski sold 2,900 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total transaction of $198,940.00. Following the completion of the sale, the chief accounting officer directly owned 9,725 shares of the company’s stock, valued at $667,135. This represents a 22.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.76% of the stock is owned by company 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.