Standard Motor Products (NYSE:SMP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Standard Motor has been witnessing year over year decline in revenues and it seems that it will follow the same trend in coming quarters as well. Further, a cooler summer in 2017 resulted in lower sales for its Temperature Control segment. The segment expects a sharper decline in products’ demand in the fourth-quarter of 2017. Also, temporary costs of plant-location shifts are hampering its financials. Over a year, Standard Motor’s shares have underperformed the industry it belongs to.”
A number of other brokerages have also recently weighed in on SMP. B. Riley reissued a “neutral” rating on shares of Standard Motor Products in a report on Wednesday, November 1st. FBR & Co reissued a “hold” rating and set a $48.00 price objective on shares of Standard Motor Products in a report on Friday, October 27th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $54.00.
Standard Motor Products declared that its Board of Directors has authorized a share buyback plan on Monday, November 20th that permits the company to buyback $10.00 million in outstanding shares. This buyback authorization permits the auto parts company to repurchase shares of its stock through open market purchases. Shares buyback plans are often an indication that the company’s management believes its stock is undervalued.
Several hedge funds and other institutional investors have recently made changes to their positions in SMP. Piedmont Investment Advisors LLC purchased a new position in shares of Standard Motor Products during the 2nd quarter valued at about $227,000. Crossmark Global Holdings Inc. purchased a new position in shares of Standard Motor Products during the 4th quarter valued at about $239,000. SG Americas Securities LLC purchased a new position in Standard Motor Products in the 3rd quarter worth approximately $309,000. GSA Capital Partners LLP increased its stake in Standard Motor Products by 29.0% in the 2nd quarter. GSA Capital Partners LLP now owns 6,131 shares of the auto parts company’s stock worth $320,000 after purchasing an additional 1,377 shares during the period. Finally, Teacher Retirement System of Texas purchased a new position in Standard Motor Products in the 4th quarter worth approximately $320,000. 80.51% of the stock is currently owned by institutional investors.
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Standard Motor Products Company Profile
Standard Motor Products, Inc is an independent manufacturer and distributor of replacement parts for motor vehicles in the automotive aftermarket industry with a complementary focus on heavy duty, industrial equipment and the original equipment service market. The Company’s segments include Engine Management Segment and Temperature Control Segment.
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