Wall Street Zen Upgrades Dorman Products (NASDAQ:DORM) to Strong-Buy

Key Points

• Wall Street Zen upgraded Dorman Products from a "buy" rating to a "strong-buy" in a recent investor note, reflecting increased confidence in the company's stock.
• Dorman Products reported earnings of $2.06 per share, exceeding estimates, with revenues rising 7.6% year-over-year to $540.96 million.
• Analyst ratings for Dorman Products show a consensus "Buy" with a target price of $175.00, bolstered by multiple upgrades from various research firms.

Dorman Products (NASDAQ:DORM - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a note issued to investors on Saturday.

DORM has been the subject of a number of other research reports. Zacks Research raised Dorman Products from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 13th. Weiss Ratings raised Dorman Products from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, October 8th. Stephens started coverage on Dorman Products in a research report on Tuesday, September 30th. They issued an "overweight" rating and a $185.00 price objective for the company. BMO Capital Markets started coverage on Dorman Products in a research report on Thursday, September 18th. They issued an "outperform" rating and a $180.00 price objective for the company. Finally, Roth Capital lifted their price objective on Dorman Products to $182.00 and gave the company a "buy" rating in a research report on Tuesday, August 26th. Two investment analysts have rated the stock with a Strong Buy rating and five have assigned a Buy rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $175.00.

Dorman Products Stock Performance

Dorman Products stock opened at $143.05 on Friday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.21 and a current ratio of 2.74. The stock has a fifty day moving average of $154.70 and a two-hundred day moving average of $133.57. The company has a market capitalization of $4.37 billion, a price-to-earnings ratio of 19.46 and a beta of 0.84. Dorman Products has a fifty-two week low of $106.95 and a fifty-two week high of $166.89.

Dorman Products (NASDAQ:DORM - Get Free Report) last released its quarterly earnings results on Monday, August 4th. The auto parts company reported $2.06 earnings per share for the quarter, topping the consensus estimate of $1.76 by $0.30. The company had revenue of $540.96 million during the quarter, compared to the consensus estimate of $517.13 million. Dorman Products had a return on equity of 19.23% and a net margin of 10.83%.Dorman Products's revenue was up 7.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.67 earnings per share. Dorman Products has set its FY 2025 guidance at 8.600-8.900 EPS. On average, analysts anticipate that Dorman Products will post 6.9 EPS for the current fiscal year.

Insider Transactions at Dorman Products

In other Dorman Products news, CAO Gregory C. Bowen sold 1,453 shares of the business's stock in a transaction dated Friday, September 12th. The stock was sold at an average price of $162.81, for a total transaction of $236,562.93. Following the completion of the sale, the chief accounting officer owned 4,659 shares of the company's stock, valued at approximately $758,531.79. The trade was a 23.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Donna M. Long sold 820 shares of the business's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $122.21, for a total value of $100,212.20. Following the sale, the senior vice president directly owned 19,074 shares of the company's stock, valued at approximately $2,331,033.54. This trade represents a 4.12% decrease in their position. The disclosure for this sale can be found here. 8.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Private Trust Co. NA lifted its stake in shares of Dorman Products by 101.2% during the third quarter. Private Trust Co. NA now owns 165 shares of the auto parts company's stock worth $26,000 after purchasing an additional 83 shares in the last quarter. Salem Investment Counselors Inc. acquired a new position in shares of Dorman Products during the third quarter worth $27,000. EverSource Wealth Advisors LLC boosted its stake in shares of Dorman Products by 594.1% in the second quarter. EverSource Wealth Advisors LLC now owns 236 shares of the auto parts company's stock valued at $29,000 after purchasing an additional 202 shares during the period. Caitong International Asset Management Co. Ltd boosted its stake in shares of Dorman Products by 961.3% in the second quarter. Caitong International Asset Management Co. Ltd now owns 329 shares of the auto parts company's stock valued at $40,000 after purchasing an additional 298 shares during the period. Finally, Farther Finance Advisors LLC grew its holdings in Dorman Products by 130.9% during the 3rd quarter. Farther Finance Advisors LLC now owns 411 shares of the auto parts company's stock valued at $64,000 after purchasing an additional 233 shares in the last quarter. Institutional investors and hedge funds own 84.70% of the company's stock.

About Dorman Products

Dorman Products, Inc supplies replacement and upgrade parts for passenger cars, light trucks, medium- and heavy-duty trucks, utility terrain vehicles, and all-terrain vehicles in the motor vehicle aftermarket industry in the United States and internationally. It offers engine products, including intake and exhaust manifolds, fans, thermostat housings, and throttle bodies; undercar products comprising fluid lines, fluid reservoirs, connectors, 4-wheel drive components and axles, drain plugs, other engine, and transmission and axle components; steering and suspension products consist of control arms, ball joints, tie-rod ends, brake hardware and hydraulics, wheel and axle hardware, suspension arms, knuckles, links, bushings, and leaf springs, as well as other suspension, steering, and brake components; body products, such as door handles and hinges, window lift motors, window regulators, switches and handles, wiper components, lighting, electrical, and other interior and exterior vehicle body components, including windshields for UTVs; electronics products comprise new and remanufactured modules, clusters and sensors; and hardware products, such as threaded bolts and auto body fasteners, automotive and home electrical wiring components, and other hardware assortments and merchandise.

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