Standard Motor Products (NYSE:SMP) Shares Gap Up on Strong Earnings

Key Points

• Standard Motor Products shares surged from a closing price of $31.58 to an opening price of $34.68 after the company reported an earnings per share (EPS) of $1.29, significantly exceeding analyst expectations of $0.97.
• The company announced a quarterly dividend of $0.31, equating to an annualized yield of 3.7%, with a payout ratio of 88.57%.
• Wall Street analysts upgraded the stock from a "buy" rating to a "strong-buy" rating, indicating increased confidence in the company's performance and outlook.

Shares of Standard Motor Products, Inc. (NYSE:SMP - Get Free Report) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $31.58, but opened at $34.68. Standard Motor Products shares last traded at $33.06, with a volume of 33,965 shares trading hands.

The auto parts company reported $1.29 EPS for the quarter, beating analysts' consensus estimates of $0.97 by $0.32. The business had revenue of $493.85 million during the quarter, compared to analysts' expectations of $450.21 million. Standard Motor Products had a net margin of 2.39% and a return on equity of 12.98%. The firm's revenue was up 26.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.98 earnings per share.

Standard Motor Products Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 2nd. Shareholders of record on Friday, August 15th will be given a dividend of $0.31 per share. The ex-dividend date is Friday, August 15th. This represents a $1.24 dividend on an annualized basis and a yield of 3.3%. Standard Motor Products's dividend payout ratio is currently 70.45%.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen upgraded shares of Standard Motor Products from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 26th.

Hedge Funds Weigh In On Standard Motor Products

Several institutional investors have recently bought and sold shares of the business. Assenagon Asset Management S.A. bought a new stake in Standard Motor Products during the first quarter worth about $996,000. North Star Investment Management Corp. acquired a new stake in shares of Standard Motor Products in the 1st quarter valued at $823,000. Rhumbline Advisers boosted its holdings in shares of Standard Motor Products by 8.4% during the 1st quarter. Rhumbline Advisers now owns 128,896 shares of the auto parts company's stock valued at $3,213,000 after acquiring an additional 9,979 shares in the last quarter. SG Americas Securities LLC raised its position in Standard Motor Products by 144.8% during the 1st quarter. SG Americas Securities LLC now owns 25,604 shares of the auto parts company's stock worth $638,000 after purchasing an additional 15,146 shares during the last quarter. Finally, GAMMA Investing LLC raised its position in shares of Standard Motor Products by 2,880.9% in the 1st quarter. GAMMA Investing LLC now owns 26,351 shares of the auto parts company's stock worth $657,000 after acquiring an additional 25,467 shares in the last quarter. Institutional investors own 81.26% of the company's stock.

Standard Motor Products Stock Performance

The company has a debt-to-equity ratio of 0.86, a quick ratio of 0.86 and a current ratio of 2.16. The company has a 50 day moving average price of $31.86 and a 200 day moving average price of $29.12. The company has a market capitalization of $822.43 million, a price-to-earnings ratio of 21.25 and a beta of 0.63.

About Standard Motor Products

Standard Motor Products, Inc manufactures and distributes replacement automotive parts in the United States and internationally. The company operates through three segments: Vehicle Control, Temperature Control, and Engineered Solutions segments. The company provides components for the ignition, emissions, and fuel delivery systems, such as air injection and induction components, air management valves, regulators and solenoids, exhaust gas recirculation components, fuel injectors and related components, fuel valves, ignition coils, connectors and sockets, modules, pumps, relays and fuses, starting and charging system parts, and vapor and purge components.