Dorman Products (NASDAQ:DORM) Share Price Crosses Above Fifty Day Moving Average - Here's What Happened

Key Points

• Dorman Products shares rose above their 50-day moving average, reaching $130.13 and last trading at $129.74, compared with a 50-day average of $125.55.
• Analyst sentiment remains favorable, with six Buy ratings and three Holds producing a consensus “Moderate Buy” rating and an average price target of $148.40, despite several recent target reductions.
• The company beat quarterly EPS estimates, reporting $2.08 versus the expected $2.00, while revenue increased 3.3% year over year to $561.72 million, slightly below expectations.

Dorman Products, Inc. (NASDAQ:DORM - Get Free Report)'s share price passed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $125.55 and traded as high as $130.13. Dorman Products shares last traded at $129.74, with a volume of 370,846 shares.

Analyst Ratings Changes

Several analysts have recently issued reports on the stock. Freedom Broker upgraded shares of Dorman Products from a "hold" rating to a "buy" rating and decreased their target price for the company from $154.00 to $152.00 in a research report on Wednesday. Wells Fargo & Company lowered their price target on shares of Dorman Products from $160.00 to $150.00 and set an "overweight" rating for the company in a report on Friday, October 23rd. Freedom Capital lowered Dorman Products from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 10th. Roth Capital reissued a "buy" rating on shares of Dorman Products in a research note on Wednesday, August 5th. Finally, Weiss Ratings upgraded Dorman Products from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $148.40.

Dorman Products Stock Performance

The company has a debt-to-equity ratio of 0.29, a current ratio of 3.60 and a quick ratio of 1.73. The business has a 50-day moving average of $125.55 and a 200-day moving average of $123.48. The company has a market capitalization of $3.85 billion, a P/E ratio of 19.31 and a beta of 1.02.

Dorman Products (NASDAQ:DORM - Get Free Report) last posted its quarterly earnings data on Monday, October 26th. The auto parts company reported $2.08 earnings per share for the quarter, beating analysts' consensus estimates of $2.00 by $0.08. Dorman Products had a net margin of 10.18% and a return on equity of 19.37%. The business had revenue of $561.72 million for the quarter, compared to analysts' expectations of $565.33 million. During the same quarter in the previous year, the business posted $2.62 earnings per share. The business's revenue was up 3.3% compared to the same quarter last year. On average, sell-side analysts anticipate that Dorman Products, Inc. will post 8.65 EPS for the current year.

Insider Buying and Selling

In related news, CAO Gregory Bowen sold 3,531 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $145.01, for a total value of $512,030.31. Following the sale, the chief accounting officer directly owned 5,340 shares of the company's stock, valued at $774,353.40. This represents a 39.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 7.70% of the company's stock.

Institutional Trading of Dorman Products

Institutional investors have recently added to or reduced their stakes in the company. Allworth Financial LP purchased a new stake in Dorman Products in the second quarter worth about $25,000. Northwestern Mutual Wealth Management Co. bought a new position in Dorman Products during the 2nd quarter worth about $26,000. Public Employees Retirement System of Ohio bought a new position in Dorman Products during the 2nd quarter worth about $47,000. Versant Capital Management Inc grew its holdings in Dorman Products by 301.5% during the 3rd quarter. Versant Capital Management Inc now owns 542 shares of the auto parts company's stock worth $66,000 after acquiring an additional 407 shares in the last quarter. Finally, GAMMA Investing LLC increased its position in Dorman Products by 32.9% during the 3rd quarter. GAMMA Investing LLC now owns 857 shares of the auto parts company's stock valued at $105,000 after purchasing an additional 212 shares during the period. Institutional investors own 84.70% of the company's stock.

Dorman Products Company Profile

Dorman Products, Inc develops, manufactures and distributes replacement and upgrade parts for automobiles, light-, medium- and heavy-duty trucks, and other vehicles. Its products are sold primarily through the automotive aftermarket, serving professional repair shops, retailers, distributors, e-commerce channels and do-it-yourself consumers.

The company offers a broad range of products, including engine, transmission, cooling, electrical, steering, suspension, braking, chassis and body components.

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