Standard Motor Products (NYSE:SMP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Standard Motor has been witnessing year over year decline in revenues and it seems that it will 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. Over a year, Standard Motor’s shares have underperformed the industry it belongs to.”
Several other equities research analysts also recently commented on SMP. FBR & Co reiterated a “hold” rating and set a $48.00 target price on shares of Standard Motor Products in a report on Friday, October 27th. B. Riley reiterated a “neutral” rating on shares of Standard Motor Products in a report on Wednesday, November 1st. One analyst has rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $54.00.
Standard Motor Products announced that its board has initiated a stock repurchase program on Monday, November 20th that allows the company to buyback $10.00 million in outstanding shares. This buyback authorization allows the auto parts company to repurchase shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s leadership believes its shares are undervalued.
Hedge funds have recently bought and sold shares of the business. Piedmont Investment Advisors LLC purchased a new stake in Standard Motor Products during the 2nd quarter worth approximately $227,000. Crossmark Global Holdings Inc. purchased a new stake in Standard Motor Products during the 4th quarter worth approximately $239,000. SG Americas Securities LLC purchased a new stake in Standard Motor Products during the 3rd quarter worth approximately $309,000. GSA Capital Partners LLP increased its holdings in Standard Motor Products by 29.0% during the 2nd quarter. GSA Capital Partners LLP now owns 6,131 shares of the auto parts company’s stock worth $320,000 after purchasing an additional 1,377 shares during the last quarter. Finally, Teacher Retirement System of Texas purchased a new stake in Standard Motor Products during the 4th quarter worth approximately $320,000. Institutional investors own 80.51% of the company’s stock.
COPYRIGHT VIOLATION WARNING: This article was reported by American Banking News and is the sole property of of American Banking News. If you are viewing this article on another domain, it was copied illegally and reposted in violation of international copyright and trademark law. The correct version of this article can be accessed at https://www.americanbankingnews.com/2018/02/13/standard-motor-products-smp-downgraded-by-zacks-investment-research-to-sell.html.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Standard Motor Products Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Standard Motor Products and related companies with MarketBeat.com's FREE daily email newsletter.