Insider Selling: BorgWarner (NYSE:BWA) VP Sells 5,000 Shares of Stock

Key Points

• BorgWarner VP Stefan Demmerle sold 5,000 shares on May 11 at an average price of $62.00, totaling $310,000. After the sale, he still held 208,746 shares worth about $12.94 million.
• The company recently reported better-than-expected quarterly results, posting EPS of $1.24 versus analyst estimates of $1.16 and revenue of $3.53 billion versus expectations of $3.50 billion.
• Analysts remain generally positive on BorgWarner, with a consensus rating of “Moderate Buy” and an average price target of $67.50, while the stock also carries a quarterly dividend of $0.17 per share.

BorgWarner Inc. (NYSE:BWA - Get Free Report) VP Stefan Demmerle sold 5,000 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $62.00, for a total value of $310,000.00. Following the completion of the sale, the vice president owned 208,746 shares in the company, valued at approximately $12,942,252. The trade was a 2.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website.

Stefan Demmerle also recently made the following trade(s):

• On Friday, May 8th, Stefan Demmerle sold 20,000 shares of BorgWarner stock. The stock was sold at an average price of $59.26, for a total transaction of $1,185,200.00.
• On Tuesday, March 10th, Stefan Demmerle sold 2,500 shares of BorgWarner stock. The shares were sold at an average price of $53.03, for a total value of $132,575.00.

BorgWarner Stock Down 0.8%

Shares of NYSE:BWA traded down $0.52 on Tuesday, hitting $62.63. 760,099 shares of the company's stock were exchanged, compared to its average volume of 2,735,725. BorgWarner Inc. has a 1-year low of $31.83 and a 1-year high of $70.08. The company has a market capitalization of $12.85 billion, a PE ratio of 37.11, a P/E/G ratio of 1.26 and a beta of 1.00. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13. The firm's 50-day moving average is $54.53 and its 200 day moving average is $50.12.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share for the quarter, topping analysts' consensus estimates of $1.16 by $0.08. The company had revenue of $3.53 billion for the quarter, compared to analysts' expectations of $3.50 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The firm's revenue for the quarter was up .5% on a year-over-year basis. During the same quarter last year, the company earned $1.11 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Sell-side analysts predict that BorgWarner Inc. will post 5.13 EPS for the current year.

BorgWarner Announces Dividend

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 dividend of $0.17 per share. The ex-dividend date is Monday, June 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. BorgWarner's payout ratio is 40.24%.

Hedge Funds Weigh In On BorgWarner

Several institutional investors and hedge funds have recently modified their holdings of the company. AQR Capital Management LLC increased its stake in BorgWarner by 119.7% in the third quarter. AQR Capital Management LLC now owns 7,518,776 shares of the auto parts company's stock valued at $330,525,000 after purchasing an additional 4,095,902 shares during the last quarter. Norges Bank purchased a new stake in BorgWarner during the 4th quarter worth $156,794,000. Millennium Management LLC raised its holdings in shares of BorgWarner by 94.5% during the 4th quarter. Millennium Management LLC now owns 2,100,815 shares of the auto parts company's stock valued at $94,663,000 after buying an additional 1,020,726 shares during the period. SEB Asset Management AB purchased a new position in shares of BorgWarner in the first quarter valued at $50,930,000. Finally, Adage Capital Partners GP L.L.C. grew its stake in shares of BorgWarner by 233.6% during the second quarter. Adage Capital Partners GP L.L.C. now owns 1,111,000 shares of the auto parts company's stock valued at $37,196,000 after acquiring an additional 778,000 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. The Goldman Sachs Group raised their price target on BorgWarner from $54.00 to $78.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Robert W. Baird set a $76.00 price objective on BorgWarner in a report on Thursday, February 12th. Wells Fargo & Company cut their target price on shares of BorgWarner to $68.00 and set an "overweight" rating on the stock in a report on Tuesday, March 31st. Wall Street Zen cut shares of BorgWarner from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Finally, Barclays raised their price objective on shares of BorgWarner from $70.00 to $75.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. Seven investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, BorgWarner has a consensus rating of "Moderate Buy" and a consensus target price of $67.50.

About BorgWarner

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.

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