Standard Motor Products (NYSE:SMP) Stock Crosses Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Standard Motor Products shares moved above their 200-day moving average, briefly touching $38.80 before last trading around $38.32. The stock’s 50-day and 200-day averages are close together, suggesting limited recent momentum.
• Analyst sentiment is cautious: recent downgrades from Zacks Research and Weiss Ratings helped keep the consensus rating at Hold, with an average price target of $49.00. Only one analyst currently rates the stock a Buy.
• Fundamentals remain solid, as the company beat quarterly EPS and revenue estimates in its latest earnings report and continues to pay a quarterly dividend of $0.33, or $1.32 annually, for a 3.4% yield.

Shares of Standard Motor Products, Inc. (NYSE:SMP - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $38.78 and traded as high as $38.80. Standard Motor Products shares last traded at $38.3170, with a volume of 125,069 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on SMP. Zacks Research downgraded Standard Motor Products from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 12th. Weiss Ratings cut Standard Motor Products from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 20th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $49.00.

Standard Motor Products Stock Performance

The company has a quick ratio of 0.78, a current ratio of 2.23 and a debt-to-equity ratio of 0.86. The stock has a market cap of $852.94 million, a price-to-earnings ratio of 18.78 and a beta of 0.81. The stock's fifty day moving average is $38.53 and its 200-day moving average is $38.78.

Standard Motor Products (NYSE:SMP - Get Free Report) last posted its earnings results on Thursday, April 30th. The auto parts company reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.09. The company had revenue of $451.17 million for the quarter, compared to analyst estimates of $429.07 million. Standard Motor Products had a net margin of 2.51% and a return on equity of 12.98%. On average, analysts forecast that Standard Motor Products, Inc. will post 4.4 EPS for the current year.

Standard Motor Products Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Friday, May 15th were given a $0.33 dividend. The ex-dividend date was Friday, May 15th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.4%. Standard Motor Products's dividend payout ratio is currently 64.71%.

Insider Buying and Selling

In related news, VP Ray Nicholas sold 5,822 shares of the firm's stock in a transaction on Monday, June 8th. The stock was 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 approximately $1,404,248.25. This trade represents a 14.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 5.50% of the company's stock.

Institutional Investors Weigh In On Standard Motor Products

Several large investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Standard Motor Products by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,446 shares of the auto parts company's stock worth $310,000 after purchasing an additional 546 shares during the period. Dynamic Technology Lab Private Ltd bought a new stake in Standard Motor Products during the 1st quarter worth approximately $214,000. Empowered Funds LLC increased its stake in Standard Motor Products by 3.0% during the 1st quarter. Empowered Funds LLC now owns 114,036 shares of the auto parts company's stock worth $2,843,000 after purchasing an additional 3,352 shares in the last quarter. Jane Street Group LLC raised its holdings in Standard Motor Products by 320.0% during the 1st quarter. Jane Street Group LLC now owns 64,037 shares of the auto parts company's stock worth $1,596,000 after buying an additional 48,790 shares during the period. Finally, Creative Planning acquired a new stake in Standard Motor Products during the 2nd quarter worth approximately $431,000. 81.26% of the stock is currently owned by institutional investors.

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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