Borgwarner EVP Calaway sells $910,581 in stock

Published 13/05/2025, 19:46
Borgwarner EVP Calaway sells $910,581 in stock

Tonit M. Calaway, Executive Vice President, Chief Administrative Officer, General Counsel, and Secretary at BorgWarner Inc. (NYSE:BWA), has sold 27,736 shares of the company’s common stock. The automotive components manufacturer, currently valued at $7.3 billion, has shown strong momentum with a 12.5% return over the past week. The transaction, which took place on May 12, 2025, was executed at a weighted average price of $32.83 per share, with actual prices ranging from $32.51 to $33.08. Following this sale, Calaway now holds 214,521 shares in BorgWarner. The company maintains strong financial health with a current ratio of 1.97 and has consistently paid dividends for 13 consecutive years. According to InvestingPro analysis, BorgWarner appears undervalued at current levels, with additional insights available in the comprehensive Pro Research Report covering 1,400+ top stocks.

In other recent news, BorgWarner has reported strong financial results for the first quarter of 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.11, exceeding the forecasted $0.98, and reported revenue of $3.52 billion, which also surpassed the anticipated $3.41 billion. Following these results, JPMorgan raised its price target for BorgWarner to $43.00 from $42.00, maintaining an Overweight rating. Similarly, TD Cowen adjusted its price target from $30.00 to $33.00, keeping a Hold rating, citing BorgWarner’s robust performance and promising new business wins as key factors.

The company has also announced strategic operational changes, including the decision to exit its charging business due to challenging market conditions, which is expected to result in a $30 million sales headwind but a $15 million EBIT tailwind by 2025. Additionally, BorgWarner plans to consolidate its battery systems business into a single facility, aiming to save approximately $10 million in 2025 and $20 million in 2026. These strategic decisions are anticipated to offset the effects of lower industry production and tariff-related timing differences.

BorgWarner’s first-quarter performance was driven by significant sales growth in electric vehicle components, particularly a 47% increase in eProduct sales. The company has provided updated guidance for 2025, projecting sales between $13.6 billion and $14.2 billion, with an adjusted EPS range of $4.00 to $4.45. Analysts from JPMorgan now forecast BorgWarner’s EBIT to reach $1.360 billion in 2025, reflecting improved earnings expectations.

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