BorgWarner EVP & CFO Sold $790K In Company Stock

A substantial insider sell was reported on August 6, by Craig Aaron, EVP & CFO at BorgWarner (NYSE:BWA), based on the recent SEC filing.

What Happened: Aaron's recent move involves selling 21,000 shares of BorgWarner. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $790,939.

During Thursday's morning session, BorgWarner shares down by 0.0%, currently priced at $38.05.

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 2024, 23% 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.

Unraveling the Financial Story of BorgWarner

Positive Revenue Trend: Examining BorgWarner's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.97% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Evaluating Earnings Performance:

• Gross Margin: The company faces challenges with a low gross margin of 17.59%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): BorgWarner's EPS is below the industry average. The company faced challenges with a current EPS of 1.04. This suggests a potential decline in earnings.

Debt Management: BorgWarner's debt-to-equity ratio is below the industry average. With a ratio of 0.69, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 35.9, BorgWarner's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.6, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 8.1, BorgWarner presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Important Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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 signals 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.