BorgWarner Inc. (NYSE:BWA) executive vice president, chief administrative officer, general counsel, and secretary, Tonit M. Calaway, has sold a total of 10,868 shares of the company's common stock, according to a recent filing with the U.S. Securities and Exchange Commission. The transaction, which took place on August 5th, resulted in a total sale value of approximately $344,951.
The shares were sold at a weighted average price of $31.74, with individual sales prices ranging from $31.52 to $31.93. This information was disclosed in a footnote within the filing, which also noted that Calaway is willing to provide further details regarding the specific number of shares sold at each price point upon request.
Following the sale, Calaway's remaining stake in BorgWarner totals 206,083 shares. The transaction was completed as a direct ownership sale, indicating that the shares were personally held by Calaway.
Investors often monitor insider transactions such as these for insights into executive confidence in the company's prospects. BorgWarner, a leading global supplier of automotive components and systems, has its stock traded on the New York Stock Exchange under the ticker symbol BWA.
The signature on the filing was provided by Miyuki P. Oshima, acting as attorney-in-fact for Tonit M. Calaway, with the document dated August 6th, the day after the reported transaction.
In other recent news, BorgWarner reported strong second-quarter results, with sales reaching $3.6 billion despite a slight production decline. The company announced a significant restructuring within its ePropulsion segment, targeting annual cost savings of around $100 million by 2026. Despite a reduction in total sales projections for 2024, BorgWarner increased its full-year margin outlook and plans to repurchase $300 million of its stock in the latter half of the year.
Recent developments also include new product awards across combustion, hybrid, and electric vehicles. BorgWarner's adjusted earnings per share from continuing operations rose by $0.13 year-over-year, with free cash flow from continuing operations at $297 million. The company projects 2024 sales to range from $14.1 billion to $14.4 billion, with a full-year margin outlook of 9.6% to 9.8%.
Despite weaker foreign currencies and a lower market production outlook, BorgWarner's growth over the market was 120 basis points. The company reports a 25% year-over-year growth in eProduct sales and expects restructuring actions to offset sales declines and provide significant cost savings. These recent developments highlight the company's strategic focus on shareholder returns and growth in the hybrid and electric vehicle sectors.
InvestingPro Insights
BorgWarner Inc. (NYSE:BWA) has recently been in the spotlight due to an insider transaction, but what does the broader financial landscape say about the company's performance and stability? According to InvestingPro data, BorgWarner has a market capitalization of $7.36 billion and a Price-to-Earnings (P/E) ratio of 10.41, which adjusts to a lower 8.02 when considering the last twelve months as of Q2 2024. The company's revenue has seen a growth of 5.48% over the last twelve months, signaling a steady upward trend in sales.
When it comes to profitability and financial health, InvestingPro Tips highlight that BorgWarner has maintained dividend payments for 12 consecutive years, showcasing a commitment to returning value to shareholders. Moreover, the company's cash flows are strong enough to cover interest payments, a reassuring sign of financial resilience. For investors looking for additional insights, there are 6 more InvestingPro Tips available, providing a deeper dive into BorgWarner's financial nuances.
These metrics and tips are particularly relevant given the recent insider sale by executive Tonit M. Calaway. While insider sales can sometimes raise questions about confidence in a company, the InvestingPro data suggests that BorgWarner is in a stable financial position with a history of profitability, as reflected in the positive revenue growth and the ability to sustain dividend payments. Interested investors can find further analysis and detailed tips by visiting InvestingPro's dedicated page for BorgWarner at: https://www.investing.com/pro/BWA.
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