Standard Motor Products Inc. (SMP) Upgraded to Strong-Buy at Zacks Investment Research
Standard Motor Products Inc. (NYSE:SMP) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Wednesday. The firm currently has a $55.00 target price on the stock. Zacks Investment Research’s price target suggests a potential upside of 15.69% from the stock’s previous close.
According to Zacks, “Standard Motor is set to benefit from its solid brand recognition and regular capital deployment, which will enhance shareholder value. Further, the buyout of General Cable’s automotive ignition wire business will lead to an improvement in earnings. The Texas facility closure and business relocation should help save $6–$7 million. However, the company is facing challenges due to rising selling, general & administrative expenses (SG&A) expenses, the competitive nature of the automotive aftermarket and customer concentration. Standard Motor’s earnings estimates have been moving up lately. The company has a mixed record of earnings surprises in recent quarters.”
A number of other research analysts have also weighed in on SMP. FBR & Co raised their target price on shares of Standard Motor Products from $38.00 to $40.00 and gave the company a “mkt perform” rating in a report on Thursday, August 4th. Jefferies Group raised their target price on shares of Standard Motor Products from $45.00 to $50.00 and gave the company a “buy” rating in a report on Thursday, August 4th. Four equities research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $48.75.
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Standard Motor Products (NYSE:SMP) opened at 47.54 on Wednesday. The firm has a 50-day moving average of $46.45 and a 200 day moving average of $40.77. Standard Motor Products has a one year low of $29.69 and a one year high of $48.37. The company has a market capitalization of $1.08 billion, a price-to-earnings ratio of 19.91 and a beta of 1.77.
Standard Motor Products (NYSE:SMP) last announced its quarterly earnings data on Wednesday, August 3rd. The company reported $0.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.73 by $0.15. Standard Motor Products had a net margin of 5.50% and a return on equity of 14.75%. The business earned $289 million during the quarter, compared to analyst estimates of $277.37 million. During the same period last year, the firm posted $0.59 EPS. The company’s revenue was up 7.3% on a year-over-year basis. Equities research analysts predict that Standard Motor Products will post $2.83 earnings per share for the current fiscal year.
In other news, Director Arthur S. Sills sold 10,000 shares of Standard Motor Products stock in a transaction on Tuesday, August 16th. The stock was sold at an average price of $42.80, for a total transaction of $428,000.00. Following the completion of the sale, the director now directly owns 361,010 shares in the company, valued at $15,451,228. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Thomas Tesoro sold 1,000 shares of Standard Motor Products stock in a transaction on Monday, August 8th. The stock was sold at an average price of $43.19, for a total value of $43,190.00. Following the sale, the vice president now owns 29,878 shares of the company’s stock, valued at $1,290,430.82. The disclosure for this sale can be found here. Company insiders own 6.50% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the company. Monarch Partners Asset Management LLC increased its stake in Standard Motor Products by 2.7% in the second quarter. Monarch Partners Asset Management LLC now owns 6,581 shares of the company’s stock valued at $262,000 after buying an additional 170 shares during the period. First Midwest Bank Trust Division increased its stake in Standard Motor Products by 47.2% in the second quarter. First Midwest Bank Trust Division now owns 10,671 shares of the company’s stock valued at $424,000 after buying an additional 3,424 shares during the period. Capstone Asset Management Co. increased its stake in Standard Motor Products by 1.9% in the second quarter. Capstone Asset Management Co. now owns 5,950 shares of the company’s stock valued at $237,000 after buying an additional 110 shares during the period. Curbstone Financial Management Corp increased its stake in Standard Motor Products by 4.4% in the second quarter. Curbstone Financial Management Corp now owns 16,552 shares of the company’s stock valued at $658,000 after buying an additional 700 shares during the period. Finally, BNP Paribas Arbitrage SA increased its stake in Standard Motor Products by 96.0% in the second quarter. BNP Paribas Arbitrage SA now owns 6,504 shares of the company’s stock valued at $259,000 after buying an additional 3,185 shares during the period. Institutional investors and hedge funds own 80.03% of the company’s stock.
Standard Motor Products Company Profile
Standard Motor Products, Inc is a manufacturer and distributor of replacement parts for motor vehicles in the automotive aftermarket industry with a focus on heavy duty, industrial equipment and the original equipment service market. The Company operates through two segments: Engine Management Segment and Temperature Control Segment.
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