Disclosed in a recent SEC filing on November 19, Long, SVP at Dorman Prods DORM, made a noteworthy transaction involving the exercise of company stock options.

What Happened: Disclosed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Long, SVP at Dorman Prods, executed a strategic derivative sale. This involved exercising stock options for 3,277 shares of DORM, resulting in a transaction value of $237,025.

During Tuesday’s morning session, Dorman Prods shares down by 0.0%, currently priced at $134.01. Considering the current price, Long’s 3,277 shares have a total value of $237,025.

All You Need to Know About Dorman Prods

Dorman Products Inc is a supplier of original equipment parts for automobiles. The company produces automotive and heavy-duty replacement parts, automotive hardware, brake parts, and fasteners for the automotive and heavy-duty aftermarket. The products are sold under the Dorman brand and its sub-brands OE Solutions, Help!, Conduct-Tite, and HD Solutions through aftermarket retailers, regional and local warehouse distributors, specialty markets, and salvage yards. It operates as a single reportable operating segment, namely, the sale of replacement and upgrades parts in the motor vehicle aftermarket industry, serving passenger cars, light-, medium-, and heavy-duty trucks as well as specialty vehicles. The company operates in the United States.

A Deep Dive into Dorman Prods’s Financials

Revenue Growth: Dorman Prods’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 3.19%. This indicates a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Key Profitability Indicators:

• Gross Margin: The company sets a benchmark with a high gross margin of 40.46%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Dorman Prods’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.81.

Debt Management: Dorman Prods’s debt-to-equity ratio is below the industry average at 0.51, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 22.45 is lower than the industry average, implying a discounted valuation for Dorman Prods’s stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.12 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 13.65, the company’s EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company’s future performance.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Dorman Prods’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.