Insider Selling: BorgWarner (NYSE:BWA) CEO Sells 29,000 Shares of Stock

Key Points

• BorgWarner CEO Joseph Fadool sold 29,000 shares on May 13 at an average price of $67.31, totaling about $1.95 million. After the sale, he still owned 405,964 shares, a 6.67% reduction in his stake.
• The company recently beat quarterly expectations, reporting EPS of $1.24 versus $1.16 expected and revenue of $3.53 billion versus $3.50 billion expected. BorgWarner also said revenue rose 0.5% year over year.
• BorgWarner raised shareholder returns with a quarterly dividend of $0.17 per share, payable June 15, implying an annualized yield of about 1.0%. The stock was also trading near its 12-month high after rising 0.6% on the day.

BorgWarner Inc. (NYSE:BWA - Get Free Report) CEO Joseph Fadool sold 29,000 shares of BorgWarner stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $67.31, for a total value of $1,951,990.00. Following the sale, the chief executive officer owned 405,964 shares in the company, valued at $27,325,436.84. This represents a 6.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

BorgWarner Stock Up 0.6%

BWA stock traded up $0.39 during midday trading on Thursday, hitting $67.26. 4,099,971 shares of the company's stock were exchanged, compared to its average volume of 2,839,085. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69. BorgWarner Inc. has a 12-month low of $31.83 and a 12-month high of $70.31. The firm has a 50 day moving average price of $54.88 and a 200-day moving average price of $50.42. The stock has a market capitalization of $13.80 billion, a price-to-earnings ratio of 39.80, a price-to-earnings-growth ratio of 1.23 and a beta of 1.00.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.16 by $0.08. The company had revenue of $3.53 billion for the quarter, compared to the consensus estimate of $3.50 billion. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.BorgWarner's revenue for the quarter was up .5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.11 EPS. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, analysts anticipate that BorgWarner Inc. will post 5.15 EPS for the current year.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be given a $0.17 dividend. The ex-dividend date is Monday, June 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. BorgWarner's dividend payout ratio (DPR) is presently 40.24%.

Analyst Upgrades and Downgrades

BWA has been the subject of several research reports. Morgan Stanley set a $60.00 target price on BorgWarner in a research report on Thursday, February 12th. Robert W. Baird set a $76.00 price target on BorgWarner in a report on Thursday, February 12th. Wall Street Zen downgraded BorgWarner from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 9th. Bank of America initiated coverage on BorgWarner in a report on Wednesday, March 4th. They issued a "neutral" rating on the stock. Finally, Deutsche Bank Aktiengesellschaft set a $81.00 price target on BorgWarner in a report on Tuesday, April 21st. Seven investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $67.64.

More BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: JPMorgan Chase & Co. raised its price target on BorgWarner to $75 from $73 and reiterated an overweight rating, implying additional upside from current levels. Benzinga
• Positive Sentiment: The company recently reported better-than-expected quarterly results, with EPS of $1.24 versus $1.16 expected and revenue of $3.53 billion versus $3.50 billion expected, reinforcing confidence in earnings momentum.
• Positive Sentiment: Analyst commentary remains constructive overall, with BorgWarner holding a Moderate Buy consensus and several firms lifting targets in recent weeks, including Barclays and Wolfe Research.
• Neutral Sentiment: BorgWarner also announced a quarterly dividend of $0.17 per share, which supports shareholder returns but is not likely the main near-term stock driver.
• Negative Sentiment: Recent insider activity has been a headwind, with VP Isabelle Mckenzie and VP Stefan Demmerle both selling shares, which can sometimes pressure sentiment even if the sales are not necessarily negative for the business.
• Negative Sentiment: TD Cowen assigned only a Hold rating, showing that not all analysts see meaningful near-term upside despite the strong rebound in the shares. The Globe and Mail

Institutional Trading of BorgWarner

Several hedge funds have recently added to or reduced their stakes in BWA. Root Financial Partners LLC bought a new stake in BorgWarner during the 3rd quarter valued at $27,000. Prosperity Bancshares Inc acquired a new stake in BorgWarner in the fourth quarter worth about $37,000. Sound Income Strategies LLC grew its position in BorgWarner by 9,888.9% in the 4th quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock valued at $42,000 after buying an additional 890 shares in the last quarter. Torren Management LLC bought a new position in BorgWarner in the 4th quarter valued at about $48,000. Finally, Olistico Wealth LLC bought a new position in BorgWarner in the 4th quarter valued at about $50,000. Institutional investors own 95.67% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.