In a latest transaction, Stefan Demmerle, Vice President of BorgWarner Inc. (NYSE:), bought 21,500 shares of widespread inventory. The shares have been bought at a weighted common value of $34.7943, with precise costs starting from $34.7500 to $34.9600. This sale amounted to a complete of $748,077. Following the transaction, Demmerle holds 227,512.69 shares instantly. The transaction was executed on November 14, 2024, and reported on November 18, 2024.
In different latest information, BorgWarner reported third-quarter income of $3,449 million, barely under market expectations, but the corporate’s earnings earlier than curiosity and taxes (EBIT) reached $350 million, surpassing estimates. BorgWarner additionally introduced a number of new enterprise awards, together with contracts for switch circumstances with a North American OEM and a high-performance turbocharger for Common Motors (NYSE:)’ Chevrolet Corvette ZR1. JPMorgan adjusted its forecast for BorgWarner’s adjusted EBIT in future years, resulting in a rise within the value goal to $51.
In a management transition, Joseph Fadool is about to succeed Frédéric Lissalde as President and CEO, following Lissalde’s deliberate retirement in 2025. BorgWarner accomplished a $400 million inventory repurchase program and projected a optimistic outlook for the complete 12 months, forecasting gross sales between $14.0 billion and $14.2 billion and an adjusted EPS of $4.15 to $4.30.
Regardless of a 5% year-over-year decline, BorgWarner managed to outperform the market, which noticed a 6% lower, and strengthened its adjusted working margin to 10.1%. The corporate’s battery section gross sales grew by 36%, with the purpose to interrupt even because it scales. BorgWarner additionally plans to deploy $475 million to $575 million in free money stream, primarily via share repurchases and dividends. These developments spotlight BorgWarner’s resilience in a difficult market and its strategic concentrate on value administration, new product awards, and a powerful efficiency within the battery section.
InvestingPro Insights
Whereas Stefan Demmerle’s latest sale of BorgWarner Inc. (NYSE:BWA) shares might elevate eyebrows, it is important to think about the broader monetary context of the corporate. In accordance with InvestingPro information, BorgWarner’s inventory is presently buying and selling at a P/E ratio of 8.72, which is comparatively low in comparison with its friends within the auto components trade. This valuation metric aligns with one of many InvestingPro Ideas, which notes that BWA is “Buying and selling at a low earnings a number of.”
Moreover, the corporate’s monetary well being seems sturdy, with an InvestingPro Tip highlighting that “Money flows can sufficiently cowl curiosity funds.” This means that regardless of the insider sale, BorgWarner maintains a powerful monetary place. The corporate’s dedication to shareholder returns can be evident, because it “Has maintained dividend funds for 12 consecutive years,” in keeping with one other InvestingPro Tip.
It is price noting that BorgWarner’s market capitalization stands at $7.51 billion, reflecting its vital presence within the automotive provide trade. The corporate’s income for the final twelve months as of Q3 2024 was $14.17 billion, with a gross revenue margin of 18.52%. Whereas this margin could also be thought-about modest, it is necessary to contextualize it throughout the aggressive panorama of the auto components sector.
For buyers searching for a extra complete evaluation, InvestingPro provides extra insights, with 10 extra ideas accessible for BorgWarner. The following tips might present beneficial context to the insider transaction and assist buyers make extra knowledgeable choices concerning the firm’s inventory.
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