Standard Motor Products (NYSE:SMP) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Standard Motor Products shares jumped after the company reported quarterly earnings of $1.54 per share, exceeding the $1.41 analyst consensus. The stock opened at $41.40, up from its prior close of $38.25.
• The company declared a quarterly dividend of $0.33 per share, equivalent to $1.32 annually and a 3.1% yield, with a payout ratio of 58.93%.
• Analyst sentiment remains positive, with an overall “Moderate Buy” rating and an average price target of $54.00. Institutional investors own 81.26% of the company, while insiders have sold shares totaling roughly $712,000 over the past three months.

Standard Motor Products, Inc. (NYSE:SMP - Get Free Report) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $38.25, but opened at $41.40. Standard Motor Products shares last traded at $42.8440, with a volume of 30,001 shares trading hands.

The auto parts company reported $1.54 earnings per share for the quarter, beating the consensus estimate of $1.41 by $0.13. Standard Motor Products had a return on equity of 13.28% and a net margin of 2.78%.

Standard Motor Products Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Friday, August 14th were issued a dividend of $0.33 per share. The ex-dividend date was Friday, August 14th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.1%. Standard Motor Products's dividend payout ratio (DPR) is currently 58.93%.

Analyst Ratings Changes

A number of research firms have issued reports on SMP. Roth Capital reiterated a "buy" rating and set a $54.00 target price on shares of Standard Motor Products in a report on Monday, October 12th. Weiss Ratings restated a "buy (b-)" rating on shares of Standard Motor Products in a research note on Monday. Finally, Wall Street Zen upgraded shares of Standard Motor Products from a "hold" rating to a "buy" rating in a research note on Sunday, August 16th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $54.00.

Insider Transactions at Standard Motor Products

In other Standard Motor Products news, EVP Dale Burks sold 5,798 shares of the business's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $39.00, for a total transaction of $226,122.00. Following the transaction, the executive vice president owned 47,657 shares in the company, valued at $1,858,623. The trade was a 10.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last three months, insiders have sold 18,349 shares of company stock worth $712,146. 5.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SMP. BlackRock Inc. bought a new stake in shares of Standard Motor Products during the second quarter valued at approximately $158,258,000. Gamco Investors INC. ET AL increased its position in Standard Motor Products by 1.7% in the 1st quarter. Gamco Investors INC. ET AL now owns 996,928 shares of the auto parts company's stock valued at $34,633,000 after acquiring an additional 16,664 shares during the period. Bank of New York Mellon Corp bought a new stake in Standard Motor Products during the 2nd quarter valued at $10,882,000. Algert Global LLC raised its stake in Standard Motor Products by 11.7% during the 2nd quarter. Algert Global LLC now owns 276,773 shares of the auto parts company's stock valued at $10,786,000 after acquiring an additional 29,063 shares in the last quarter. Finally, Allianz Asset Management GmbH acquired a new position in Standard Motor Products during the 2nd quarter worth $5,869,000. Institutional investors and hedge funds own 81.26% of the company's stock.

Standard Motor Products Stock Performance

The company has a market cap of $964.55 million, a P/E ratio of 19.28 and a beta of 0.85. The company has a 50 day moving average price of $37.63 and a 200-day moving average price of $38.57. The company has a quick ratio of 0.80, a current ratio of 2.00 and a debt-to-equity ratio of 0.73.

About Standard Motor Products

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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