AUBURN HILLS, Mich.—Frederic Lissalde, President and CEO of BorgWarner Inc. (NYSE:BWA), recently sold 154,000 shares of the company's common stock. The shares were sold at a weighted average price of $34.61, with actual transaction prices ranging from $34.42 to $34.83. This sale resulted in a total transaction value of approximately $5.33 million.
Following the transaction, Lissalde retains ownership of 259,957 shares in the company. The sale was disclosed in a filing with the Securities and Exchange Commission, signed by Miyuki P. Oshima as attorney-in-fact for Lissalde.
In other recent news, BorgWarner reported robust third-quarter results, with earnings before interest and taxes (EBIT) reaching $350 million, exceeding both JPMorgan and market consensus estimates. The company's earnings per share (EPS) for the quarter were $1.09, notably higher than anticipated. However, the third-quarter revenue of $3,449 million was slightly lower than expected. JPMorgan has since raised its price target for BorgWarner to $51, maintaining an Overweight rating on the stock.
Additionally, BorgWarner announced several new business awards, including contracts for transfer cases, high voltage coolant heaters, and a high-performance turbocharger. The company also reported the completion of a $400 million stock repurchase program and projected a positive outlook for the full year.
BorgWarner is set to undergo a leadership transition with Joseph Fadool succeeding Frédéric Lissalde as President and CEO, following Lissalde's planned retirement in 2025. This change is expected to maintain operational excellence and drive value creation for stakeholders. These recent developments reflect BorgWarner's resilience in a challenging market and its strategic focus on cost management, new product awards, and strong performance in the battery segment.
InvestingPro Insights
While BorgWarner's CEO has recently sold a significant number of shares, it's important to consider this transaction within the broader context of the company's financial health and market position. According to InvestingPro data, BorgWarner's market capitalization stands at $7.74 billion, with a price-to-earnings ratio of 8.97, suggesting the stock may be undervalued relative to its earnings.
An InvestingPro Tip indicates that BorgWarner is trading at a low P/E ratio relative to its near-term earnings growth, which could be of interest to value investors. This aligns with the company's PEG ratio of 0.31, further supporting the notion of potential undervaluation.
Despite the CEO's recent stock sale, another InvestingPro Tip reveals that management has been aggressively buying back shares. This corporate action often signals confidence in the company's future prospects and can potentially increase shareholder value.
It's worth noting that BorgWarner has maintained dividend payments for 12 consecutive years, as highlighted by an additional InvestingPro Tip. With a current dividend yield of 1.25%, the company continues to provide income to its shareholders.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for BorgWarner, providing a deeper understanding of the company's financial position and market outlook.
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