Standard Motor Products (SMP) Downgraded to “Sell” at Zacks Investment Research

Standard Motor Products (NYSE:SMP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Standard Motor has been witnessing year over year decline in revenues and it seems that it will to follow the same trend in coming quarters as well. Further, a cooler summer in 2017 resulted in lower sales for its Temperature Control segment. The segment expects a sharper decline in products’ demand in the fourth-quarter of 2017. Also, temporary costs of plant-location shifts are hampering its financials. In the last six months, Standard Motor’s shares have underperformed the industry it belongs to.”

A number of other equities analysts also recently commented on SMP. FBR & Co reissued a “hold” rating and set a $48.00 price objective on shares of Standard Motor Products in a research report on Friday, October 27th. B. Riley reissued a “neutral” rating on shares of Standard Motor Products in a research report on Wednesday, November 1st. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company’s stock. Standard Motor Products has an average rating of “Hold” and an average target price of $54.00.

Standard Motor Products (SMP) traded up $0.52 during midday trading on Wednesday, reaching $48.28. The company’s stock had a trading volume of 37,180 shares, compared to its average volume of 113,911. The firm has a market cap of $1,048.81, a P/E ratio of 20.47, a P/E/G ratio of 2.36 and a beta of 1.82. Standard Motor Products has a 52 week low of $40.56 and a 52 week high of $54.73.

Standard Motor Products announced that its board has authorized a stock repurchase program on Monday, November 20th that allows the company to buyback $10.00 million in shares. This buyback authorization allows the auto parts company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

A number of hedge funds and other institutional investors have recently modified their holdings of SMP. Piedmont Investment Advisors LLC purchased a new stake in Standard Motor Products in the second quarter valued at approximately $227,000. Crossmark Global Holdings Inc. acquired a new position in Standard Motor Products during the fourth quarter worth $239,000. Nordea Investment Management AB acquired a new position in Standard Motor Products during the second quarter worth $256,000. SG Americas Securities LLC acquired a new position in Standard Motor Products during the third quarter worth $309,000. Finally, Suntrust Banks Inc. grew its holdings in Standard Motor Products by 1.1% during the second quarter. Suntrust Banks Inc. now owns 5,949 shares of the auto parts company’s stock worth $310,000 after acquiring an additional 64 shares during the period. Institutional investors own 79.42% of the company’s stock.

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About Standard Motor Products

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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