BorgWarner Vice President Sold $166K In Company Stock

On May 20, a recent SEC filing unveiled that Isabelle McKenzie, Vice President at BorgWarner BWA made an insider sell.

What Happened: McKenzie's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 5,000 shares of BorgWarner. The total transaction value is $166,250.

Tracking the Tuesday's morning session, BorgWarner shares are trading at $33.5, showing a up of 1.33%.

Unveiling the Story Behind BorgWarner

BorgWarner is a tier one supplier of turbo and thermal management technologies, drivetrain systems, powerdrive systems, and battery and charging systems mostly to automotive original equipment manufacturers. Its products aim to move a vehicle with as few electrons as possible, resulting in cleaner, cost-optimized, and more-efficient vehicles. Foundational products, the combustion vehicle business, contributes more than 80% to group revenue while BorgWarner transitions to becoming an electric vehicle-centric parts supplier (e-business). In 2023, 25% of the company's revenue was sourced from Volkswagen and Ford. Revenue is well diversified geographically, with approximately a third each generated in North America, Europe, and Asia.

Key Indicators: BorgWarner's Financial Health

Revenue Challenges: BorgWarner's revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -2.23%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Analyzing Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 18.18%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, BorgWarner exhibits below-average bottom-line performance with a current EPS of 0.72.

Debt Management: With a below-average debt-to-equity ratio of 0.71, BorgWarner adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 23.28, BorgWarner's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.52 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 7.64 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Uncovering the Importance of Insider Activity

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of BorgWarner's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.