Carmine Joseph Broccole, Chief Legal Officer and Secretary of Standard Motor Products, Inc. (NYSE:SMP), reported a recent transaction involving the sale of company stock. On November 11, Broccole sold 913 shares of Standard Motor Products at a weighted average price of $34.96, amounting to a total value of $31,918.
This sale was part of a broker-assisted transaction to cover the withholding tax liability incurred upon the vesting of restricted stock and a performance share award. Following this transaction, Broccole holds 81,241 shares directly.
Earlier, on November 8, Broccole acquired 1,025 shares of Standard Motor Products' common stock at no cost. These shares were granted upon the vesting of a performance share award issued in September 2021 under the company's Amended and Restated 2016 Omnibus Incentive Plan.
In other recent news, Standard Motor Products, Inc. reported steady growth in its Q3 earnings call with a 3.3% increase in revenue and over 15% year-over-year growth in adjusted diluted EPS. The company also completed its acquisition of Nissens Automotive, a move expected to enhance growth and operational synergies. As part of its financial strategies, Standard Motor Products secured a new 5-year, $750 million credit facility to fund the acquisition and support growth. The company anticipates low to mid-single-digit sales growth for 2024, with adjusted EBITDA projected between 9% and 9.5%. However, challenges lie ahead with softer production schedules and uncertainties impacting future forecasts. Despite these challenges, the company's financial strategies indicate readiness to support ongoing and future growth initiatives. As Standard Motor Products integrates with Nissens, investors will be closely monitoring the realized synergies and contributions to the company's performance.
InvestingPro Insights
Following the recent insider transaction by Carmine Joseph Broccole, it's worth examining Standard Motor Products' (NYSE:SMP) financial health and market position. According to InvestingPro data, the company boasts a market capitalization of $733.98 million USD, reflecting its substantial presence in the automotive parts industry.
InvestingPro Tips highlight that Standard Motor Products has maintained dividend payments for 15 consecutive years, demonstrating a commitment to shareholder returns. This aligns with the company's current dividend yield of 3.35%, which may be attractive to income-focused investors. Additionally, the company's liquid assets exceed short-term obligations, indicating a strong financial position that supports its ongoing operations and potential for future growth.
The company's recent performance has been noteworthy, with InvestingPro data showing a robust 19.22% price total return over the past three months. This positive momentum could be indicative of investor confidence in the company's strategy and market position.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into Standard Motor Products' investment potential.
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