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 Stefan Demmerle, the VP and President & GM of PowerDrive Systems recently netted about US$913k selling shares at an average price of US$45.64. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.9%.

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The Last 12 Months Of Insider Transactions At BorgWarner

In fact, the recent sale by Stefan Demmerle was the biggest sale of BorgWarner shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$44.80. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year BorgWarner insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for BorgWarner

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Does BorgWarner Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. BorgWarner insiders own about US$83m worth of shares. That equates to 0.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The BorgWarner Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for BorgWarner you should know about.

But note: BorgWarner may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.