Standard Motor Products (NYSE:SMP) Shares Climb 8.4% Following Strong Earnings

Key Points

• Standard Motor Products shares rose 8.4% after the company reported quarterly earnings of $1.54 per share, beating analysts’ $1.41 consensus estimate. Revenue was $512.9 million, slightly below expectations.
• The company declared a quarterly dividend of $0.33 per share, equivalent to $1.32 annually and a 2.9% yield.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $54, while institutional investors own 81.26% of the stock.

Standard Motor Products, Inc. (NYSE:SMP - Get Free Report)'s stock price was up 8.4% during mid-day trading on Monday following a better than expected earnings announcement. The stock traded as high as $45.94 and last traded at $45.9710. 131,924 shares were traded during mid-day trading, a decline of 5% from the average session volume of 139,237 shares. The stock had previously closed at $42.41.

The auto parts company reported $1.54 earnings per share for the quarter, beating the consensus estimate of $1.41 by $0.13. The business had revenue of $512.90 million during the quarter, compared to analysts' expectations of $514.99 million. Standard Motor Products had a return on equity of 13.65% and a net margin of 3.77%.

Standard Motor Products Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Monday, November 16th will be given a dividend of $0.33 per share. The ex-dividend date is Monday, November 16th. This represents a $1.32 annualized dividend and a dividend yield of 2.9%. Standard Motor Products's dividend payout ratio (DPR) is 58.93%.

Wall Street Analyst Weigh In

A number of analysts recently commented on SMP shares. Roth Capital reiterated a "buy" rating and issued a $54.00 target price on shares of Standard Motor Products in a report on Monday. Weiss Ratings restated a "buy (b-)" rating on shares of Standard Motor Products in a report on Monday, October 26th. Finally, Wall Street Zen upgraded shares of Standard Motor Products from a "hold" rating to a "buy" rating in a research report on Sunday, August 16th. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $54.00.

Insider Transactions at Standard Motor Products

In other Standard Motor Products news, EVP Dale Burks sold 5,798 shares of the company's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $39.00, for a total transaction of $226,122.00. Following the completion of the sale, the executive vice president directly owned 47,657 shares of the company's stock, valued at approximately $1,858,623. This represents a 10.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last 90 days, insiders sold 18,349 shares of company stock worth $712,146. 5.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Standard Motor Products

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in Standard Motor Products during the 2nd quarter worth approximately $158,258,000. Bank of New York Mellon Corp purchased a new stake in shares of Standard Motor Products in the second quarter valued at $10,882,000. Allianz Asset Management GmbH acquired a new stake in shares of Standard Motor Products in the second quarter worth $5,869,000. Empowered Funds LLC acquired a new stake in shares of Standard Motor Products in the second quarter worth $5,492,000. Finally, Manatuck Hill Partners LLC acquired a new stake in shares of Standard Motor Products in the second quarter worth $4,482,000. Hedge funds and other institutional investors own 81.26% of the company's stock.

Standard Motor Products Stock Up 8.5%

The company has a debt-to-equity ratio of 0.56, a current ratio of 1.81 and a quick ratio of 0.73. The firm has a market cap of $1.03 billion, a PE ratio of 15.07 and a beta of 0.80. The business has a fifty day moving average price of $37.72 and a two-hundred day moving average price of $38.59.

Standard Motor Products Company Profile

Standard Motor Products, Inc NYSE: SMP manufactures and distributes replacement parts for the automotive aftermarket. The company supplies components used to maintain and repair passenger vehicles, light trucks, and other transportation equipment, serving automotive parts distributors, retailers, repair shops, and vehicle service professionals.

Its product offerings include engine management components such as sensors, ignition parts, fuel system components, and emissions-related products.

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