This Insider Has Just Sold Shares In BorgWarner

Anyone interested in BorgWarner Inc. (NYSE:BWA) should probably be aware that the Executive VP, Tonit Calaway, recently divested US$407k worth of shares in the company, at an average price of US$30.16 each. On the bright side, that sale was only 4.9% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for BorgWarner

The Last 12 Months Of Insider Transactions At BorgWarner

In the last twelve months, the biggest single sale by an insider was when the insider, Frederic Lissalde, sold US$5.3m worth of shares at a price of US$34.61 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$29.40. So it may not tell us anything about how insiders feel about the current share price.

Insiders in BorgWarner didn't buy any shares in the last year. 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!

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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that BorgWarner insiders own 1.0% of the company, worth about US$63m. 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 sold BorgWarner shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 4 warning signs for BorgWarner and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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