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This Insider Has Just Sold Shares In Standard Motor Products, Inc. (NYSE:SMP)
We'd be surprised if Standard Motor Products, Inc. (NYSE:SMP) shareholders haven't noticed that the EVP, Chief Commercial Officer & Member of the Office of Chief Executive, Dale Burks, recently sold US$136k worth of stock at US$38.40 per share. However, the silver lining is that the sale only reduced their total holding by 5.4%, so we're hesitant to read anything much into it, on its own.
View our latest analysis for Standard Motor Products
Standard Motor Products Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Lawrence Sills bought US$386k worth of shares at a price of US$38.82 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$34.78). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Lawrence Sills was the only individual insider to buy during the last year.
Lawrence Sills purchased 10.78k shares over the year. The average price per share was US$38.60. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Standard Motor Products is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Standard Motor Products
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 9.6% of Standard Motor Products shares, worth about US$72m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Standard Motor Products Insiders?
Insiders sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're happy enough to look past some selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Standard Motor Products has 3 warning signs we think you should be aware of.
But note: Standard Motor Products may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
What are the risks and opportunities for Standard Motor Products?
Standard Motor Products, Inc. manufactures and distributes automotive parts that are used in the maintenance, repair, and service of vehicles in the automotive aftermarket industry in the United States and internationally.
Rewards
Price-To-Earnings ratio (10.7x) is below the US market (14.6x)
Earnings are forecast to grow 6.21% per year
Risks
Significant insider selling over the past 3 months
Profit margins (5.3%) are lower than last year (7.6%)
Further research on
Standard Motor Products
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NYSE:SMP
Standard Motor Products
Standard Motor Products, Inc. manufactures and distributes automotive parts that are used in the maintenance, repair, and service of vehicles in the automotive aftermarket industry in the United States and internationally.
Adequate balance sheet and fair value.
