Nicholas Ray, Chief Information Officer and Vice President of IT at Standard Motor Products, Inc. (NYSE:SMP), recently sold 613 shares of the company’s common stock, according to a filing with the Securities and Exchange Commission. The shares were sold on November 11 at a weighted average price of $35.02, totaling approximately $21,467. The sale was part of a broker-assisted transaction to cover a withholding tax liability incurred upon the vesting of restricted stock and a performance share award.
In addition to this transaction, Ray acquired 854 shares on November 8 at no cost, following the vesting of a performance share award granted in September 2021. After these transactions, Ray holds a total of 51,115 shares directly.
In other recent news, Standard Motor Products, Inc. has reported a 3.3% increase in revenue during its Q3 2024 Earnings Call, marking a nearly 6% growth year-to-date. The company's adjusted diluted EPS also saw a significant rise, growing over 15% year-over-year. This growth is attributed to sales growth and margin improvement.
Standard Motor Products has also successfully completed the acquisition of Nissens Automotive, following regulatory approval. This acquisition is expected to enhance growth and operational synergies for the company. To support this acquisition and future growth, the company has secured a new 5-year, $750 million credit facility.
Analysts have noted some challenges for the company, including softer production schedules and a decrease in cash generated from operations. However, they also highlighted strong net sales for Q3 and an increase in accounts receivable and inventory levels due to higher sales volumes. The company's future growth expectations, excluding the impact from the Nissens acquisition, are in the low to mid-single-digit range, with adjusted EBITDA projected between 9% and 9.5%. These are the recent developments for Standard Motor Products.
InvestingPro Insights
While Nicholas Ray's recent stock transactions provide insight into executive activity, it's important to consider Standard Motor Products' broader financial picture. According to InvestingPro data, SMP has a market capitalization of $733.98 million and has demonstrated solid financial performance with a revenue of $1.41 billion over the last twelve months as of Q3 2024.
InvestingPro Tips highlight that SMP has maintained dividend payments for 15 consecutive years, showcasing the company's commitment to shareholder returns. This is particularly relevant given the recent executive stock activity, as it indicates a long-term focus on investor value. Additionally, SMP's liquid assets exceed short-term obligations, suggesting a strong financial position that supports ongoing operations and potential growth initiatives.
The company's P/E ratio (adjusted) of 10.48 for the last twelve months as of Q3 2024 indicates that the stock may be reasonably valued relative to its earnings. This metric, combined with the InvestingPro Tip that SMP is expected to remain profitable this year, could be of interest to value-oriented investors considering the stock in light of the recent insider transaction.
For readers interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for SMP, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.