Standard Motor Products Inc. (SMP) Rating Lowered to Hold at Zacks Investment Research
Standard Motor Products Inc. (NYSE:SMP) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Standard Motor will benefit from its solid brand recognition and regular capital deployment, which will enhance shareholder value. Further, the buyout of General Cable’s automotive ignition wire business will lead to an improvement in earnings. The Texas facility closure and business relocation should help save $6–$7 million. However, the company is facing challenges due to rising selling, general & administrative expenses (SG&A) expenses, the competitive nature of the automotive aftermarket and customer concentration. Standard Motor’s earnings estimates have been stable lately. The company has a mixed record of earnings surprises in recent quarters.”
Several other equities research analysts have also recently weighed in on the company. FBR & Co boosted their target price on Standard Motor Products from $38.00 to $40.00 and gave the stock a “mkt perform” rating in a research note on Thursday, August 4th. Jefferies Group boosted their target price on Standard Motor Products from $45.00 to $50.00 and gave the stock a “buy” rating in a research note on Thursday, August 4th. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. Standard Motor Products presently has a consensus rating of “Buy” and a consensus price target of $45.00.
Shares of Standard Motor Products (NYSE:SMP) opened at 47.73 on Tuesday. The stock has a market cap of $1.08 billion, a price-to-earnings ratio of 19.99 and a beta of 1.77. Standard Motor Products has a 52-week low of $29.69 and a 52-week high of $48.09. The firm has a 50-day moving average price of $45.43 and a 200 day moving average price of $39.89.
Standard Motor Products (NYSE:SMP) last posted its earnings results on Wednesday, August 3rd. The company reported $0.88 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.15. The firm earned $289 million during the quarter, compared to analysts’ expectations of $277.37 million. Standard Motor Products had a return on equity of 14.75% and a net margin of 5.50%. The firm’s revenue was up 7.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.59 earnings per share. Analysts expect that Standard Motor Products will post $2.83 earnings per share for the current year.
In other Standard Motor Products news, insider Peter J. Sills sold 2,310 shares of Standard Motor Products stock in a transaction that occurred on Tuesday, October 4th. The stock was sold at an average price of $47.07, for a total transaction of $108,731.70. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Arthur S. Sills sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 16th. The shares were sold at an average price of $42.80, for a total value of $428,000.00. Following the completion of the transaction, the director now directly owns 361,010 shares in the company, valued at approximately $15,451,228. The disclosure for this sale can be found here. Company insiders own 6.50% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. TIAA CREF Investment Management LLC raised its position in Standard Motor Products by 11.8% in the first quarter. TIAA CREF Investment Management LLC now owns 104,867 shares of the company’s stock worth $3,634,000 after buying an additional 11,103 shares during the last quarter. Prudential Financial Inc. raised its position in Standard Motor Products by 1.6% in the first quarter. Prudential Financial Inc. now owns 116,587 shares of the company’s stock worth $4,040,000 after buying an additional 1,800 shares during the last quarter. BlackRock Fund Advisors raised its position in Standard Motor Products by 1.2% in the first quarter. BlackRock Fund Advisors now owns 1,240,428 shares of the company’s stock worth $42,981,000 after buying an additional 14,400 shares during the last quarter. BlackRock Institutional Trust Company N.A. raised its position in Standard Motor Products by 0.7% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 509,314 shares of the company’s stock worth $17,648,000 after buying an additional 3,428 shares during the last quarter. Finally, Zebra Capital Management LLC raised its position in Standard Motor Products by 47.2% in the first quarter. Zebra Capital Management LLC now owns 21,923 shares of the company’s stock worth $760,000 after buying an additional 7,025 shares during the last quarter. 80.02% of the stock is currently owned by institutional investors and hedge funds.
About Standard Motor Products
Standard Motor Products, Inc is a manufacturer and distributor of replacement parts for motor vehicles in the automotive aftermarket industry with a focus on heavy duty, industrial equipment and the original equipment service market. The Company operates through two segments: Engine Management Segment and Temperature Control Segment.
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