BlackRock Inc. Invests $158.26 Million in Standard Motor Products, Inc. $SMP

Key Points

• BlackRock acquired 4.06 million shares of Standard Motor Products in the second quarter, valued at approximately $158.3 million and representing an 18.24% stake. Institutional investors collectively own 81.26% of the company.
• Standard Motor Products exceeded quarterly expectations, reporting $1.40 in EPS versus the $1.39 consensus and revenue of $526.7 million compared with estimates of $511.7 million.
• The company declared a quarterly dividend of $0.33 per share, or $1.32 annually, implying a 3.6% yield. Analysts maintain a “Moderate Buy” consensus with a $49 price target, although insiders sold 26,121 shares worth about $1.02 million over the past 90 days.

BlackRock Inc. bought a new stake in Standard Motor Products, Inc. (NYSE:SMP - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 4,061,021 shares of the auto parts company's stock, valued at approximately $158,258,000. BlackRock Inc. owned 18.24% of Standard Motor Products as of its most recent SEC filing.

Several other hedge funds also recently made changes to their positions in SMP. Dimensional Fund Advisors LP increased its stake in shares of Standard Motor Products by 0.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,386,382 shares of the auto parts company's stock worth $51,089,000 after acquiring an additional 4,927 shares in the last quarter. Royce & Associates LP lifted its position in Standard Motor Products by 3.4% during the 4th quarter. Royce & Associates LP now owns 1,101,199 shares of the auto parts company's stock valued at $40,579,000 after acquiring an additional 36,688 shares during the period. Gamco Investors INC. ET AL boosted its stake in Standard Motor Products by 1.7% during the first quarter. Gamco Investors INC. ET AL now owns 996,928 shares of the auto parts company's stock worth $34,633,000 after acquiring an additional 16,664 shares in the last quarter. State Street Corp boosted its stake in Standard Motor Products by 0.6% during the fourth quarter. State Street Corp now owns 826,471 shares of the auto parts company's stock worth $30,455,000 after acquiring an additional 5,319 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in Standard Motor Products by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 503,039 shares of the auto parts company's stock worth $18,539,000 after purchasing an additional 1,268 shares during the period. 81.26% of the stock is currently owned by institutional investors.

Standard Motor Products Stock Performance

Shares of SMP stock opened at $36.98 on Friday. Standard Motor Products, Inc. has a one year low of $34.27 and a one year high of $46.00. The company's 50-day moving average is $38.64 and its 200 day moving average is $38.61. The company has a market capitalization of $826.13 million, a price-to-earnings ratio of 16.51 and a beta of 0.82. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.80 and a current ratio of 2.00.

Standard Motor Products (NYSE:SMP - Get Free Report) last issued its earnings results on Tuesday, August 4th. The auto parts company reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.01. The business had revenue of $526.72 million during the quarter, compared to analysts' expectations of $511.68 million. Standard Motor Products had a net margin of 2.78% and a return on equity of 13.28%. During the same period in the previous year, the company earned $1.13 earnings per share. Sell-side analysts expect that Standard Motor Products, Inc. will post 4.23 EPS for the current fiscal year.

Standard Motor Products Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 14th will be issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date is Friday, August 14th. Standard Motor Products's payout ratio is presently 58.93%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on SMP. Weiss Ratings raised shares of Standard Motor Products from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, July 28th. Wall Street Zen raised Standard Motor Products from a "hold" rating to a "buy" rating in a research report on Sunday, August 16th. Finally, Zacks Research downgraded Standard Motor Products from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 12th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, Standard Motor Products presently has an average rating of "Moderate Buy" and a consensus price target of $49.00.

Insider Activity at Standard Motor Products

In other news, VP Ray Nicholas sold 5,822 shares of the firm's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $39.75, for a total transaction of $231,424.50. Following the sale, the vice president owned 35,327 shares of the company's stock, valued at $1,404,248.25. This trade represents a 14.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Dale Burks sold 9,051 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $38.71, for a total transaction of $350,364.21. Following the completion of the sale, the executive vice president owned 56,955 shares in the company, valued at $2,204,728.05. This represents a 13.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 26,121 shares of company stock worth $1,018,217 over the last ninety days. 5.50% of the stock is currently owned by insiders.

Standard Motor Products Company Profile

Standard Motor Products, Inc, headquartered in Long Island City, New York, is a leading manufacturer and distributor of aftermarket and original equipment automotive parts. Since its founding in 1919, the company has focused on engineering, testing, and supplying ignition and temperature management products for passenger cars and light trucks. Its product lineup includes ignition coils, spark plug wires, sensors, switches, heating and air conditioning controls, and related electronic components.

The company operates through two primary segments: Engine Management and Temperature Control.

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