Standard Motor Products, Inc. (NYSE:SMP) has been making news lately as Victory Capital Management Inc. reduced its position in the company by 29.4% during Q4, according to their recent 13F filing with Securities & Exchange Commission. The institutional investor owned $224,405 shares of the auto parts company’s stock after selling 93,552 shares during the period, with their worth at the end of the most recent quarter standing at $9,079,000. This move begs a closer look at what’s happening with Standard Motor Products, and what investors can expect from the auto parts industry.
In related news within Standard Motor Products itself, recent reports have shown that insider Thomas Tesoro sold 1,000 shares of the company’s stock in a transaction that took place on Monday February 27th for an average price of $38.62 per share, totalling $38,620.00. Following this sale Tesoro now owns 17,566 shares in Standard Motor Products valued at $678.398.92 directly through his insider dealings within the company.
Additionally, EVP Dale Burks also sold some of his stake in SMP recently by trading 3,530 shares back on March 9th for an average price of $38.40 each and receiving a total value of $135,552.00 for his holdings within Standard Motor products Inc.
This recent decline in ownership seems to be having little effect upon SMP as it currently opens to trade at USD$36.31 today with analysts predicting continued steadiness from SMP who have had an impressive year so far with predictions suggesting high possible margins thanks to their strong fundamentals and efficient management team.
Another factor that could influence future success is how efficiently SMP can handle debt ratios as they currently stand – a debt-to-equity ratio of .34 places them mid-market-cap against other similarly sized automotive supply companies while predictions are made concerning market expansion, along with keeping in line with their current operating margins.
All this serves to remind potential investors that while risks are part of the game, expanding your holdings into well-managed companies trading at good value points can benefit both them and shareholders as standard. That seems to be what Victory Capital Management were aiming for when they made the decision to reduce their position in Standard Motor Products, Inc., but for those keeping an eye on this industry shaking company, professional financial advice is still the first step toward informed investments.
Investor Interest Grows in Standard Motor Products Inc Amidst Insider Sales and Positive Q1 Earnings
Standard Motor Products Inc. has seen increased interest from investors as several large investors have bought and sold shares of the auto parts company. Institutional investors presently own 75.14% of the stock, with notable increases in holdings by investors such as Walleye Capital LLC, Zurcher Kantonalbank Zurich Cantonalbank, Mutual of America Capital Management LLC, Inspire Investing LLC, and Occudo Quantitative Strategies LP. TheStreet has also reported an upgrade rating on Standard Motor Products’ shares from “c+” to “b-”. Additionally, insider sales should be noted with Thomas Tesoro selling 1,000 shares at an average price of $38.62 and EVP Dale Burks selling 3,530 shares at an average price of $38.40 in transactions that were both disclosed to the SEC.
Despite this activity, Standard Motor Products last posted earnings data for Q1 on May 3rd that exceeded market expectations with an earnings per share (EPS) of $0.61 versus the consensus estimate of $0.58 EPS. However, revenue had a slight decrease from analysts’ expectations — $328 million versus $328.9 million – as net margin remained consistent at around 3%. The company’s dividend payout for Q2 is set to be paid on June 1st to investors who were recorded on May 15th as owning shares of Standard Motor Products; it represents a dividend yield of 3.19% with a total payout ratio amounting to approximately 54%. Analysts predict Standard Motor Products will post EPS of 3.5 for the current year based off data available today.
Based on these numbers this exciting company still carries risk that must be factored into investor’s decisions before buying or selling their stake in the business. As we wait for future updates time will tell whether or not Standard Motor Products Inc is able to continue its positive momentum while adapting its business model for a rapidly evolving industry.
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