Penn Capital Management Company LLC Takes Position in BorgWarner Inc. $BWA

Penn Capital Management Company LLC acquired a new position in shares of BorgWarner Inc. (NYSE:BWA) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 22,550 shares of the auto parts company’s stock, valued at approximately $1,514,000.

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

Insider Activity

In other news, Director Rajesh Kalathur bought 7,407 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were bought at an average cost of $67.59 per share, with a total value of $500,639.13. Following the acquisition, the director owned 7,407 shares in the company, valued at $500,639.13. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, 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 transaction of $198,940.00. Following the completion of the sale, the chief accounting officer owned 9,725 shares of the company’s stock, valued at $667,135. This trade 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 insiders.

Key Stories Impacting BorgWarner

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%

NYSE BWA opened at $64.25 on Friday. BorgWarner Inc. has a 12 month low of $40.50 and a 12 month high of $78.82. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67. The stock has a 50 day moving average of $65.59 and a 200-day moving average of $62.07. The company has a market cap of $13.09 billion, a PE ratio of 32.12, a PEG ratio of 1.15 and a beta of 1.10.

BorgWarner (NYSE:BWA) last issued its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, topping 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 business had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.58 billion. During the same period in the previous year, the company earned $1.21 earnings per share. The firm’s revenue for the quarter was up .3% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, equities research analysts anticipate that BorgWarner Inc. will post 5.2 EPS for the current fiscal year.

BorgWarner announced that its board has authorized a share repurchase plan on Wednesday, August 5th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the auto parts company to buy up to 7.7% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its shares are undervalued.

BorgWarner Announces Dividend

The company also recently disclosed 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 is Tuesday, September 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. BorgWarner’s payout ratio is currently 34.00%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Weiss Ratings raised shares of BorgWarner from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, June 29th. Wolfe Research reissued an “outperform” rating and set a $95.00 price target on shares of BorgWarner in a research report on Wednesday, June 3rd. Sanford C. Bernstein upgraded shares of BorgWarner to a “buy” rating in a research note on Wednesday, June 10th. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on BorgWarner in a report on Thursday, August 6th. Finally, Morgan Stanley lifted their target price on BorgWarner from $67.00 to $71.00 and gave the company an “equal weight” rating in a research report 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. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $75.93.

BorgWarner Company 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.