Paul Arthur Farrell, Executive Vice President and Chief Strategy Officer at BorgWarner Inc. (NYSE:BWA), recently sold 20,266 shares of the company's common stock. The shares were sold at a weighted average price of $34.4684, with the actual sale prices ranging from $34.42 to $34.545. This transaction, which took place on November 11, 2024, resulted in a total sale value of approximately $698,536.
Following this transaction, Farrell retains ownership of 32,366.5 shares of BorgWarner. The sale was disclosed in a filing with the Securities and Exchange Commission, signed by Miyuki P. Oshima as attorney-in-fact for Farrell.
In other recent news, BorgWarner has seen a series of significant developments. The company's third-quarter earnings results outperformed market expectations, with earnings before interest and taxes (EBIT) reaching $350 million and earnings per share (EPS) of $1.09, both exceeding JPMorgan's and consensus estimates. However, the reported revenue of $3,449 million fell slightly short of projections.
BorgWarner has also been the subject of a leadership transition, with Joseph Fadool set to succeed Frédéric Lissalde as President and CEO following Lissalde's planned retirement in 2025. This move has been approved by the company's board and is expected to maintain operational excellence and drive value creation for stakeholders.
On the financial side, JPMorgan has raised its price target for BorgWarner to $51.00, maintaining an Overweight rating on the stock. This adjustment comes after the company's strong third-quarter performance and its ability to raise earnings outlook in a challenging environment.
BorgWarner also reported several new business awards, including contracts for transfer cases with a North American OEM, high voltage coolant heaters with OEMs in Asia, and a high-performance turbocharger for General Motors (NYSE:GM)' Chevrolet Corvette ZR1. Despite a reduced outlook for full-year 2024 eProduct sales, the company's diverse customer base and product offerings are seen as positive drivers for near and medium-term margin and earnings.
InvestingPro Insights
In light of Paul Arthur Farrell's recent stock sale, it's worth examining some key financial metrics and insights for BorgWarner Inc. (NYSE:BWA). According to InvestingPro data, BorgWarner's market capitalization stands at $7.74 billion, with a price-to-earnings (P/E) ratio of 8.97, significantly lower than many of its industry peers.
An InvestingPro Tip highlights that BorgWarner is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation. This could be particularly interesting for investors considering the stock's current price in relation to the company's future prospects.
Another relevant InvestingPro Tip notes that management has been aggressively buying back shares. This share repurchase activity, combined with Farrell's insider sale, presents a complex picture of insider sentiment and corporate financial strategy.
BorgWarner's revenue for the last twelve months as of Q3 2024 was $14.17 billion, with a modest revenue growth of 1.26%. The company's gross profit margin stands at 18.52%, which, while positive, is flagged as weak by InvestingPro Tips.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips on BorgWarner, providing a deeper dive into the company's financial health and market position.
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