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AUBURN HILLS, MI—Weng Volker, Vice President of BorgWarner Inc. (NYSE:BWA), a $7.3 billion automotive components manufacturer with a "GOOD" financial health rating according to InvestingPro, has sold a significant portion of the company’s common stock. According to a recent SEC filing, Volker sold 10,000 shares on May 12, 2025, at a price of $32.98 per share, amounting to a total transaction value of $329,799. The transaction comes as BorgWarner’s stock shows strong momentum, posting a 12.5% return over the past week, with the current share price at $33.26. Following this sale, Volker retains ownership of 78,008 shares of BorgWarner stock. InvestingPro analysis suggests the stock is currently undervalued, with 8 additional real-time insights available to subscribers.
In other recent news, BorgWarner has reported a strong first quarter for 2025, with earnings per share (EPS) of $1.11, surpassing the forecast of $0.98. The company’s revenue reached $3.52 billion, exceeding expectations and reflecting robust sales growth in electric vehicle components. TD Cowen has raised its price target for BorgWarner to $33, maintaining a Hold rating, highlighting the company’s solid quarterly results and updated guidance for 2025. Similarly, JPMorgan increased its price target to $43, keeping an Overweight rating, citing better-than-expected revenue and earnings before interest and taxes (EBIT) that exceeded both their own and consensus estimates.
BorgWarner’s strategic decisions include exiting the charging business due to challenging market conditions, which is expected to result in a $30 million sales headwind but a $15 million EBIT tailwind in 2025. The company also plans to consolidate its battery systems business into a single facility, aiming for cost savings of $10 million in 2025 and $20 million in 2026. These strategic changes are anticipated to mitigate the effects of lower industry production and tariff-related timing differences. BorgWarner has provided full-year 2025 sales guidance between $13.6 billion and $14.2 billion, with an adjusted EPS range of $4.00 to $4.45, reflecting confidence in continued sales outgrowth and tariff recoveries.
The company’s recent business wins include securing contracts for hybrid e-motors and high voltage coolant heaters with major OEMs, indicating a focus on long-term profitable growth. Despite a year-over-year decline in vehicle production, BorgWarner managed a slight increase in organic sales, driven by a significant jump in eProduct sales. Analysts from firms like TD Cowen and JPMorgan have revised their estimates upward, reflecting the company’s promising new business achievements and resilient performance.
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