AUBURN HILLS, Mich.—Weng Volker, Vice President at BorgWarner Inc. (NYSE:BWA), recently sold 20,000 shares of the company's common stock. The transaction, which took place on November 11, 2024, was executed at a weighted average price of $34.5394 per share, resulting in a total sale value of approximately $690,788.
Following this sale, Volker retains ownership of 72,271.96 shares in BorgWarner. The stock sale was conducted without the involvement of any equity swaps. The price per share for this transaction ranged from $34.5101 to $34.5840.
The transaction was documented in a Form 4 filing with the Securities and Exchange Commission, signed by Miyuki P. Oshima as attorney-in-fact for Volker Weng.
In other recent news, BorgWarner showcased a resilient financial performance in the third quarter, reporting earnings before interest and taxes (EBIT) of $350 million and earnings per share (EPS) of $1.09, both surpassing market expectations. The company's third-quarter revenue stood at $3,449 million. JPMorgan (NYSE:JPM), in response to these results, raised BorgWarner's price target to $51.00, maintaining an Overweight rating on the stock.
The company announced several new business contracts, including high voltage coolant heaters with OEMs in Asia and a high-performance turbocharger for General Motors (NYSE:GM)' Chevrolet Corvette ZR1. BorgWarner also completed a $400 million stock repurchase program and projected a positive outlook for the full year, forecasting sales between $14.0 billion and $14.2 billion and an adjusted EPS of $4.15 to $4.30.
In addition to these financial highlights, BorgWarner announced a leadership transition, with Joseph Fadool set to succeed Frédéric Lissalde as President and CEO, following Lissalde's planned retirement in 2025. These recent developments reflect BorgWarner's strategic focus on cost management, new product awards, and a strong performance in the battery segment.
InvestingPro Insights
The recent insider sale by Vice President Weng Volker comes at a time when BorgWarner Inc. (NYSE:BWA) is trading at a relatively low valuation compared to its growth prospects. According to InvestingPro data, the company's P/E ratio stands at 8.97, while its PEG ratio is a mere 0.31, suggesting the stock may be undervalued relative to its earnings growth potential.
Despite the insider sale, there are positive indicators for BorgWarner's financial health. An InvestingPro Tip highlights that the company's cash flows can sufficiently cover interest payments, indicating solid financial stability. Additionally, BorgWarner has maintained dividend payments for 12 consecutive years, demonstrating a commitment to shareholder returns.
However, investors should note that 7 analysts have revised their earnings downwards for the upcoming period, which may explain the insider's decision to sell shares. On the flip side, BorgWarner's management has been aggressively buying back shares, potentially signaling confidence in the company's long-term prospects.
For those seeking a deeper understanding of BorgWarner's financial position, InvestingPro offers 9 additional tips that could provide valuable insights for investment decisions.
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