Borgwarner vice president Stefan Demmerle sells shares worth $748,077 By Investing.com
In the latest transaction, Stefan Demmerle, Vice President of BorgWarner Inc. (NYSE:), sold 21,500 shares of common stock. Shares traded at an average price of $34.7943, with actual prices ranging from $34.7500 to $34.9600. These sales totaled $748,077. After the purchase, Demmerle has 227,512.69 direct shares. Work performed on November 14, 2024, and reported on November 18, 2024.
In other recent news, BorgWarner reported third-quarter revenue of $3,449 million, slightly below market expectations, however the company’s earnings before interest and taxes (EBIT) came in at $350 million, beating estimates. BorgWarner also announced several new business awards, including transmission case contracts with a North American OEM and a high-performance turbocharger for General Motors’ (NYSE:)’ Chevrolet Corvette ZR1. JPMorgan has adjusted its forecast for BorgWarner’s adjusted EBIT over the coming years, resulting in a price target increase to $51.
In a leadership transition, Joseph Fadool will succeed Frédéric Lissalde as President and CEO, following Lissalde’s planned retirement in 2025. BorgWarner completed a $400 million stock repurchase program and issued a positive outlook for the full year, forecasting sales between $14.0 billion and $1422 billion. billion and adjusted EPS of $4.15 to $4.30.
Despite falling 5% year over year, BorgWarner managed to outperform the market, which fell 6%, and strengthened its adjusted operating margin to 10.1%. Sales of the company’s battery segment grew by 36%, with the goal of breaking even as it grows. BorgWarner also plans to use $475 million to $575 million in free cash flow, mostly through stock and dividend repurchases. These events highlight BorgWarner’s resilience in a challenging market and its strategic focus on cost control, product innovation, and strong performance in the battery segment.
InvestingPro Insights
Although Stefan Demmerle’s recent sale of BorgWarner Inc. (NYSE:BWA) may raise eyebrows, it’s important to consider the company’s broader financial context. According to InvestingPro data, BorgWarner stock currently trades at a P/E ratio of 8.72, which is low compared to peers in the auto parts industry. This valuation metric is consistent with one of InvestingPro Tips, which notes that BWA is “Trading at Low Earnings.”
In addition, the company’s financial position appears to be strong, and InvestingPro Tip highlights that “Cash flow can adequately cover interest payments.” This suggests that despite the internal sale, BorgWarner maintains a strong financial position. The company’s commitment to shareholder returns is also evident, as it has “maintained dividend payments for 12 consecutive years,” according to another InvestingPro Tip.
It is worth noting that BorgWarner’s market capitalization reaches $7.51 billion, indicating its significant presence in the automotive supply industry. The company’s revenue for the last twelve months from Q3 2024 was $14.17 billion, with a gross profit margin of 18.52%. While this margin may be considered modest, it is important to consider it in the competitive environment of the auto parts industry.
For investors looking for a more comprehensive analysis, InvestingPro provides more information, with 10 more tips available on BorgWarner. These tips can provide valuable context to an insider’s work and help investors make informed decisions about a company’s stock.
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