In a recent filing with the Securities and Exchange Commission, BorgWarner Inc. (NYSE:BWA) reported that Vice President Isabelle McKenzie sold 5,700 shares of the company's common stock. The transaction, which took place on November 11, was executed at an average price of $34.62 per share, amounting to a total sale value of $197,334.
Following this transaction, McKenzie retains ownership of 37,639.55 shares in BorgWarner. The company, headquartered in Auburn Hills, Michigan, is a well-known player in the motor vehicle parts and accessories industry.
In other recent news, BorgWarner reported third-quarter earnings that surpassed both the market and JPMorgan (NYSE:JPM)'s expectations. The company's revenue reached $3,449 million, slightly below the anticipated $3,516 million. However, BorgWarner's earnings before interest and taxes (EBIT) hit $350 million, beating JPMorgan's estimate of $330 million. The company's earnings per share (EPS) for the quarter were $1.09, notably higher than the forecast of $0.93.
In addition to financial performance, BorgWarner announced several new business contracts and a leadership transition, with Joseph Fadool set to succeed Frédéric Lissalde as President and CEO in 2025. JPMorgan adjusted its forecast for BorgWarner's future EBIT and raised the price target to $51, citing the company's ability to raise earnings outlook in a challenging environment.
These recent developments reflect BorgWarner's resilience and strategic focus on cost management, new product awards, and strong performance in the battery segment. The company remains committed to managing costs effectively and adapting its production processes for electrification.
InvestingPro Insights
While Vice President Isabelle McKenzie's recent stock sale might raise eyebrows, a deeper look at BorgWarner Inc. (NYSE:BWA) reveals a more nuanced picture. According to InvestingPro data, the company's stock is currently trading at a P/E ratio of 8.97, which is relatively low compared to its peers in the automotive parts industry. This valuation metric aligns with an InvestingPro Tip suggesting that BWA is "trading at a low P/E ratio relative to near-term earnings growth," potentially indicating an undervalued stock.
Despite the recent insider sale, another InvestingPro Tip highlights that "management has been aggressively buying back shares." This corporate action often signals confidence in the company's future prospects and can be seen as a positive sign for investors.
BorgWarner's financial health appears robust, with the company boasting a market capitalization of $7.74 billion and generating revenue of $14.17 billion over the last twelve months. Moreover, the company's profitability is underscored by an InvestingPro Tip noting that BWA has been "profitable over the last twelve months."
For investors seeking more comprehensive analysis, InvestingPro offers 9 additional tips for BorgWarner, providing a deeper understanding of the company's financial position and future outlook.
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