Have Insiders Sold BorgWarner Shares Recently?

We wouldn't blame BorgWarner Inc. (NYSE:BWA) shareholders if they were a little worried about the fact that Volker Weng, the VP, President and GM of Emissions recently netted about US$664k selling shares at an average price of US$33.74. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for BorgWarner

The Last 12 Months Of Insider Transactions At BorgWarner

The President, Frederic Lissalde, made the biggest insider sale in the last 12 months. That single transaction was for US$7.0m worth of shares at a price of US$31.08 each. That means that even when the share price was below the current price of US$33.65, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 33% of Frederic Lissalde's holding.

BorgWarner insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like BorgWarner better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that BorgWarner insiders own 0.8% of the company, worth about US$65m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The BorgWarner Insider Transactions Indicate?

Insiders haven't bought BorgWarner stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since BorgWarner is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with BorgWarner and understanding it should be part of your investment process.

Of course BorgWarner may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.