Stefan Demmerle, Vice President at BorgWarner BWA, disclosed an insider sell on August 14, according to a recent SEC filing.
What Happened: Demmerle’s recent move involves selling 20,000 shares of BorgWarner. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $792,218.
As of Friday morning, BorgWarner shares are down by 0.07%, currently priced at $41.42.
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.
Financial Milestones: BorgWarner’s Journey
Revenue Growth: BorgWarner’s remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 0.97%. This signifies a substantial increase in the company’s 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.
Profitability Metrics: Unlocking Value
Gross Margin: The company issues a cost efficiency warning with a low gross margin of 17.59%, 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 1.04.
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: BorgWarner’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 39.1.
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.65, 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): The company’s EV/EBITDA ratio of 8.68 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Illuminating the Importance of Insider Transactions
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
A Closer Look at 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.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
BWABorgWarner Inc$41.36-0.22%Stock Score Locked: Edge Members Only
Benzinga Rankings give you vital metrics on any stock – anytime.
Unlock RankingsEdge RankingsMomentum88.31Growth33.67Quality63.89Value80.16Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs
