Zacks Investment Research Downgrades Standard Motor Products, Inc. (NYSE:SMP) to Sell
Standard Motor Products, Inc. (NYSE:SMP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Friday.
According to Zacks, “Standard Motor’s earnings missed the Zacks Consensus Estimate in the second quarter, whereas revenues surpassed the same. Compared with the year-ago figures, the company’s earnings per share were lower, whereas the revenue was higher. The company is facing low gross margin issue, majorly due to acquisition of low margin businesses as well as facility relocations. Other problems faced by the company related to facility shifting are high Selling, General and Administrative charges and restructuring costs of approximately $3.7 million, which is hampering its financials. Standard Motor’s shares have also underperformed the industry it belongs to, in the last six months.”
Several other analysts have also commented on the stock. BidaskClub upgraded shares of Standard Motor Products from a “hold” rating to a “buy” rating in a research report on Tuesday, August 1st. Jefferies Group LLC reiterated a “buy” rating on shares of Standard Motor Products in a research report on Friday, July 7th.
Shares of Standard Motor Products (SMP) traded up 0.50% on Friday, hitting $45.82. The stock had a trading volume of 202,133 shares. The stock has a market cap of $1.04 billion, a PE ratio of 16.54 and a beta of 1.81. The company’s 50 day moving average is $51.58 and its 200 day moving average is $49.86. Standard Motor Products has a one year low of $42.11 and a one year high of $55.37.
Standard Motor Products (NYSE:SMP) last released its quarterly earnings results on Monday, July 31st. The auto parts company reported $0.81 EPS for the quarter, missing the consensus estimate of $0.99 by $0.18. The business had revenue of $312.73 million during the quarter, compared to analyst estimates of $310.71 million. Standard Motor Products had a net margin of 5.55% and a return on equity of 14.83%. The firm’s revenue for the quarter was up 8.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.88 earnings per share. Equities research analysts predict that Standard Motor Products will post $2.87 EPS for the current fiscal year.
In related news, VP Thomas Tesoro sold 3,950 shares of the firm’s stock in a transaction that occurred on Wednesday, August 2nd. The shares were sold at an average price of $47.91, for a total transaction of $189,244.50. Following the sale, the vice president now owns 29,026 shares in the company, valued at $1,390,635.66. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Arthur S. Sills sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 9th. The stock was sold at an average price of $50.34, for a total transaction of $503,400.00. Following the sale, the director now owns 351,010 shares in the company, valued at approximately $17,669,843.40. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 42,950 shares of company stock worth $2,159,099. 6.60% of the stock is owned by company insiders.
A number of hedge funds have recently made changes to their positions in the company. BNP Paribas Arbitrage SA raised its stake in shares of Standard Motor Products by 31.9% in the second quarter. BNP Paribas Arbitrage SA now owns 7,039 shares of the auto parts company’s stock worth $368,000 after buying an additional 1,702 shares during the period. Legal & General Group Plc raised its stake in shares of Standard Motor Products by 8.0% in the second quarter. Legal & General Group Plc now owns 36,626 shares of the auto parts company’s stock worth $1,914,000 after buying an additional 2,711 shares during the period. ClariVest Asset Management LLC purchased a new stake in shares of Standard Motor Products during the second quarter worth about $256,000. First Trust Advisors LP raised its stake in shares of Standard Motor Products by 39.8% in the second quarter. First Trust Advisors LP now owns 35,807 shares of the auto parts company’s stock worth $1,870,000 after buying an additional 10,196 shares during the period. Finally, Granite Investment Partners LLC raised its stake in shares of Standard Motor Products by 3.8% in the second quarter. Granite Investment Partners LLC now owns 230,296 shares of the auto parts company’s stock worth $12,026,000 after buying an additional 8,501 shares during the period. Hedge funds and other institutional investors own 77.56% of the company’s stock.
Standard Motor Products Company Profile
Standard Motor Products, Inc is an independent manufacturer and distributor of replacement parts for motor vehicles in the automotive aftermarket industry with a complementary focus on heavy duty, industrial equipment and the original equipment service market. The Company’s segments include Engine Management Segment and Temperature Control Segment.
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