Stefan Demmerle, Vice President of BorgWarner Inc. (NYSE:BWA), recently sold 20,544 shares of the company's common stock. The shares were sold at a weighted average price of $34.2752, resulting in a total transaction value of $704,149. The transaction comes at an interesting time, as InvestingPro data shows the company trading at an attractive P/E ratio of 8.7x, well below industry averages. Additionally, with a market capitalization of $7.5 billion, BorgWarner appears undervalued according to InvestingPro's Fair Value analysis. The sale took place on November 27, 2024, with prices ranging from $34.25 to $34.50 per share. Following this transaction, Demmerle retains ownership of 206,968.69 shares in the company. Notably, InvestingPro analysis reveals that management has been aggressively buying back shares, one of several bullish indicators identified in the comprehensive Pro Research Report available for BorgWarner, which is among the 1,400+ US equities covered in-depth on the platform.
In other recent news, BorgWarner has reported solid Q3 results, with organic sales surpassing $3.4 billion, despite a 5% year-over-year decline. The company's earnings per share (EPS) increased to $1.09, outperforming both JPMorgan's forecast of $0.93 and the consensus of $0.94. BorgWarner's earnings before interest and taxes (EBIT) reached $350 million, surpassing JPMorgan's estimate of $330 million.
Following these results, JPMorgan updated its outlook on BorgWarner, raising the price target to $51.00 from $50.00, while maintaining an Overweight rating on the stock. BorgWarner also completed a $400 million stock repurchase program and projected a positive outlook for the full year, forecasting sales between $14.0 billion and $14.2 billion and an adjusted EPS of $4.15 to $4.30.
In leadership changes, Joseph Fadool is set to succeed Frédéric Lissalde as President and CEO, following Lissalde's planned retirement on February 6, 2025. Other recent developments include new business awards and a strong performance in the battery segment, demonstrating BorgWarner's resilience in a challenging market and its strategic focus on cost management.
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