Is BorgWarner Inc. (NYSE:BWA) a buy?
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Just as necessary, positive insider trading activity is another way to look at the marketplace. As the old adage goes: there are a number of motivations for an insider to cut shares of his or her company, but just one, very clear reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this method if investors know what to do (learn more here).
What’s more, let’s examine the recent info surrounding BorgWarner Inc. (NYSE:BWA).
Hedge fund activity in BorgWarner Inc. (NYSE:BWA)
At Q2’s end, a total of 32 of the hedge funds we track were bullish in this stock, a change of 60% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their stakes considerably.
With a general bullishness amongst the titans, specific money managers were leading the bulls’ herd. Partner Fund Management, managed by Christopher Medlock James, created the largest position in BorgWarner Inc. (NYSE:BWA). Partner Fund Management had 79.5 million invested in the company at the end of the quarter. Mario Gabelli’s GAMCO Investors also made a $52.5 million investment in the stock during the quarter. The following funds were also among the new BWA investors: Ken Griffin’s Citadel Investment Group, Christopher Lord’s Criterion Capital, and D. E. Shaw’s D E Shaw.
What do corporate executives and insiders think about BorgWarner Inc. (NYSE:BWA)?
Legal insider trading, particularly when it’s bullish, is best served when the company in focus has experienced transactions within the past half-year. Over the last half-year time frame, BorgWarner Inc. (NYSE:BWA) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to BorgWarner Inc. (NYSE:BWA). These stocks are Lear Corporation (NYSE:LEA), Delphi Automotive PLC (NYSE:DLPH), LKQ Corporation (NASDAQ:LKQ), TRW Automotive Holdings Corp. (NYSE:TRW), and Autoliv Inc. (NYSE:ALV). This group of stocks are the members of the auto parts industry and their market caps resemble BWA’s market cap.
