Dorman Products (NASDAQ:DORM) Coverage Initiated at BMO Capital Markets

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.

Research analysts at BMO Capital Markets assumed coverage on shares of Dorman Products (NASDAQ:DORM - Get Free Report) in a research note issued to investors on Thursday,Benzinga reports. The brokerage set an "outperform" rating and a $180.00 price target on the auto parts company's stock. BMO Capital Markets' target price suggests a potential upside of 14.73% from the company's previous close.

A number of other brokerages have also issued reports on DORM. Roth Capital raised their price target on Dorman Products to $182.00 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. Wall Street Zen lowered Dorman Products from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 9th. Zacks Research raised Dorman Products from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 13th. Finally, Wells Fargo & Company started coverage on Dorman Products in a research note on Friday, August 22nd. They set an "overweight" rating and a $175.00 price target for the company. One investment 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.com, the stock has an average rating of "Buy" and an average target price of $172.50.

Dorman Products Stock Performance

NASDAQ:DORM opened at $156.89 on Thursday. The company has a current ratio of 2.74, a quick ratio of 1.21 and a debt-to-equity ratio of 0.31. Dorman Products has a 12-month low of $106.21 and a 12-month high of $166.89. The stock has a 50-day moving average price of $143.77 and a 200 day moving average price of $130.06. The stock has a market capitalization of $4.79 billion, a P/E ratio of 21.35 and a beta of 0.82.

Dorman Products (NASDAQ:DORM - Get Free Report) last released its 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. Dorman Products had a return on equity of 19.23% and a net margin of 10.83%.The firm had revenue of $540.96 million during the quarter, compared to analysts' expectations of $517.13 million. During the same quarter last year, the business posted $1.67 earnings per share. The firm's revenue was up 7.6% on a year-over-year basis. Dorman Products has set its FY 2025 guidance at 8.600-8.900 EPS. Equities research analysts forecast that Dorman Products will post 6.9 EPS for the current fiscal year.

Insider Buying and Selling at Dorman Products

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

Institutional Trading of Dorman Products

Institutional investors have recently made changes to their positions in the business. Wellington Management Group LLP lifted its position in Dorman Products by 192.9% during the 1st quarter. Wellington Management Group LLP now owns 511,791 shares of the auto parts company's stock worth $61,691,000 after acquiring an additional 337,074 shares during the period. Norges Bank purchased a new position in shares of Dorman Products during the 2nd quarter valued at approximately $40,449,000. Nuveen LLC purchased a new position in shares of Dorman Products during the 1st quarter valued at approximately $25,976,000. Jennison Associates LLC increased its holdings in shares of Dorman Products by 24.3% during the 2nd quarter. Jennison Associates LLC now owns 744,400 shares of the auto parts company's stock valued at $91,316,000 after purchasing an additional 145,758 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in shares of Dorman Products by 22.1% during the 1st quarter. Invesco Ltd. now owns 760,774 shares of the auto parts company's stock valued at $91,704,000 after purchasing an additional 137,913 shares in the last quarter. Institutional investors and hedge funds own 84.70% of the company's stock.

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.

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