Nathan R. Iles, Chief Financial Officer of Standard Motor Products, Inc. (NYSE:SMP), recently executed a sale of company shares. According to a Form 4 filing with the Securities and Exchange Commission, Iles sold 1,485 shares on November 11, 2024, at a weighted average price of $34.97 per share, totaling approximately $51,930. This transaction was part of a broker-assisted sale aimed at covering the payment of withholding tax liability incurred upon the vesting of restricted stock and a performance share award.
Earlier, on November 8, 2024, Iles acquired 1,366 shares of common stock at no cost, as these shares were granted upon the vesting of a performance share award under the company's Amended and Restated 2016 Omnibus Incentive Plan. Following these transactions, Iles holds 29,015 shares directly, with an additional 405 shares beneficially owned through an Employee Stock Ownership Plan (ESOP).
In other recent news, Standard Motor Products, Inc. reported a 3.3% revenue increase during its Q3 2024 earnings call, marking a nearly 6% growth year-to-date. The company also noted an over 15% rise in adjusted diluted EPS year-over-year, a result of sales growth and margin improvement. These developments are coupled with the completion of regulatory approval for the acquisition of Nissens Automotive, a move expected to spur growth and operational synergies.
Sales in the Vehicle Control segment increased by 5%, Temperature Control by 1.9%, and Engineered Solutions by 0.8%. The company secured a new 5-year, $750 million credit facility to fund the acquisition and support growth. Looking forward, Standard Motor Products projects low to mid-single-digit sales growth for 2024, with adjusted EBITDA estimated between 9% and 9.5%.
However, the company faces challenges with softer production schedules and a decrease in cash generated from operations to $78.2 million from $132.9 million last year. Additionally, the company acknowledged uncertainty in its 2025 forecasts due to fluctuating interest rates and costs from a new distribution center. Despite these challenges, the company's Q3 performance and strategic acquisition of Nissens Automotive demonstrate resilience and promise for future growth.
InvestingPro Insights
Standard Motor Products, Inc. (NYSE:SMP) has demonstrated financial stability and shareholder value, as evidenced by recent InvestingPro data. The company's market capitalization stands at $733.98 million, reflecting its significant presence in the automotive aftermarket industry.
An InvestingPro Tip highlights that SMP has maintained dividend payments for 15 consecutive years, underscoring its commitment to returning value to shareholders. This is particularly relevant in light of the recent insider transaction, as it provides context for the company's long-term financial strategy and shareholder relations.
The company's P/E ratio (adjusted) of 10.48 for the last twelve months as of Q3 2024 suggests that the stock may be reasonably valued relative to its earnings. This metric could be of interest to investors analyzing the implications of the CFO's recent stock sale and acquisition.
Another InvestingPro Tip notes that SMP has strong returns over the last three months, with data showing a 19.22% price total return over that period. This recent performance may provide additional context for the timing of the insider transactions reported in the article.
For readers interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for SMP, providing a deeper dive into 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.