Some BorgWarner Inc. (NYSE:BWA) shareholders may be a little concerned to see that the Executive VP, Tonit Calaway, recently sold a substantial US$3.1m worth of stock at a price of US$69.65 per share. That's a big disposal, and it decreased their holding size by 31%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At BorgWarner

Notably, that recent sale by Tonit Calaway is the biggest insider sale of BorgWarner shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$66.23. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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 the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that BorgWarner insiders own 0.9% of the company, worth about US$128m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At BorgWarner Tell Us?

Insiders haven't bought BorgWarner stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since BorgWarner is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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.

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.