BMO Capital Markets Begins Coverage on Dorman Products (NASDAQ:DORM)

Key Points

• BMO Capital Markets has initiated coverage on Dorman Products, assigning an "outperform" rating and a price target of $180.00, indicating a potential upside of 14.73% from the current stock price.
• Recent earnings report revealed that Dorman Products achieved $2.06 earnings per share, exceeding expectations and reflecting a 7.6% year-over-year revenue growth to $540.96 million.
• Institutional investors own 84.70% of Dorman Products stock, with Wellington Management significantly increasing its stake by 192.9% in the first quarter.

Equities research analysts at BMO Capital Markets began coverage on shares of Dorman Products (NASDAQ:DORM - Get Free Report) in a research note issued on Thursday, MarketBeat Ratings reports. The firm set an "outperform" rating and a $180.00 price target on the auto parts company's stock. BMO Capital Markets' price objective suggests a potential upside of 14.15% from the company's current price.

A number of other research analysts also recently commented on the stock. Roth Capital lifted their price objective on shares of Dorman Products to $182.00 and gave the company a "buy" rating in a research report on Tuesday, August 26th. Zacks Research raised shares of Dorman Products from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 13th. Wall Street Zen lowered Dorman Products from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 9th. Finally, Wells Fargo & Company initiated coverage on Dorman Products in a report on Friday, August 22nd. They issued an "overweight" rating and a $175.00 target price for the company. One analyst has rated the stock with a Strong Buy rating and four have issued a Buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $172.50.

Dorman Products Stock Up 0.8%

Shares of NASDAQ:DORM traded up $1.25 during midday trading on Thursday, hitting $157.69. 41,657 shares of the stock were exchanged, compared to its average volume of 214,069. The business's fifty day simple moving average is $145.13 and its two-hundred day simple moving average is $130.41. Dorman Products has a 52-week low of $106.95 and a 52-week high of $166.89. The company has a market capitalization of $4.81 billion, a PE ratio of 21.40 and a beta of 0.81. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.21 and a current ratio of 2.74.

Dorman Products (NASDAQ:DORM - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The auto parts company reported $2.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.30. The company had revenue of $540.96 million for the quarter, compared to analyst estimates of $517.13 million. Dorman Products had a net margin of 10.83% and a return on equity of 19.23%. The business's quarterly revenue was up 7.6% on a year-over-year basis. During the same period last year, the business posted $1.67 EPS. Dorman Products has set its FY 2025 guidance at 8.600-8.900 EPS. As a group, research analysts predict that Dorman Products will post 6.9 earnings per share for the current fiscal year.

Insider Activity at Dorman Products

In related news, SVP Donna M. Long sold 820 shares of the company's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $122.21, for a total transaction of $100,212.20. Following the sale, the senior vice president directly owned 19,074 shares in the company, valued at approximately $2,331,033.54. This represents a 4.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Gregory C. Bowen sold 1,453 shares of the stock in a transaction on Friday, September 12th. The shares were sold at an average price of $162.81, for a total transaction of $236,562.93. Following the completion of the transaction, the chief accounting officer directly owned 4,659 shares in the company, valued at $758,531.79. This trade represents a 23.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 8.90% of the company's stock.

Hedge Funds Weigh In On Dorman Products

Several large investors have recently added to or reduced their stakes in DORM. Wellington Management Group LLP increased its stake in Dorman Products by 192.9% in the 1st quarter. Wellington Management Group LLP now owns 511,791 shares of the auto parts company's stock worth $61,691,000 after purchasing an additional 337,074 shares in the last quarter. Norges Bank acquired a new stake in Dorman Products in the second quarter valued at approximately $40,449,000. Nuveen LLC bought a new stake in shares of Dorman Products during the 1st quarter worth $25,976,000. Jennison Associates LLC raised its stake in shares of Dorman Products by 24.3% in the 2nd quarter. Jennison Associates LLC now owns 744,400 shares of the auto parts company's stock valued at $91,316,000 after buying an additional 145,758 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in Dorman Products by 22.1% in the 1st quarter. Invesco Ltd. now owns 760,774 shares of the auto parts company's stock valued at $91,704,000 after buying an additional 137,913 shares in the last quarter. 84.70% of the stock is currently owned by institutional investors.

About Dorman Products

Dorman Products, Inc supplies replacement and upgrade parts for passenger cars, light trucks, medium- and heavy-duty trucks, utility terrain vehicles, and all-terrain vehicles in the motor vehicle aftermarket industry in the United States and internationally. It offers engine products, including intake and exhaust manifolds, fans, thermostat housings, and throttle bodies; undercar products comprising fluid lines, fluid reservoirs, connectors, 4-wheel drive components and axles, drain plugs, other engine, and transmission and axle components; steering and suspension products consist of control arms, ball joints, tie-rod ends, brake hardware and hydraulics, wheel and axle hardware, suspension arms, knuckles, links, bushings, and leaf springs, as well as other suspension, steering, and brake components; body products, such as door handles and hinges, window lift motors, window regulators, switches and handles, wiper components, lighting, electrical, and other interior and exterior vehicle body components, including windshields for UTVs; electronics products comprise new and remanufactured modules, clusters and sensors; and hardware products, such as threaded bolts and auto body fasteners, automotive and home electrical wiring components, and other hardware assortments and merchandise.