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Nicholas Ray, the Chief Information Officer and Vice President of IT at Standard Motor Products, Inc. (NYSE:SMP), a $745 million auto parts manufacturer with a GOOD financial health rating according to InvestingPro, recently sold 4,730 shares of the company's common stock. The transaction, which took place on December 9, 2024, was executed at a weighted average price of $34.11 per share, amounting to a total value of approximately $161,340.
Following this sale, Ray retains direct ownership of 46,385 shares of Standard Motor Products. The shares were sold in multiple trades at prices ranging from $33.97 to $34.44, with the stock currently showing potential upside according to InvestingPro's Fair Value analysis. Ray has committed to providing detailed information about these trades upon request to the Securities and Exchange Commission, the issuer, or any security holder of the issuer.
Additionally, Ray holds 8,812 shares through an Employee Stock Ownership Plan (ESOP), although allocations or dispositions may have occurred since his last ownership report. The company has maintained dividend payments for 15 consecutive years and currently offers a 3.4% dividend yield, demonstrating strong shareholder returns.
In other recent news, Standard Motor Products, Inc. reported a 3.3% increase in revenue during its Q3 2024 Earnings Call, along with a significant 15% year-over-year rise in adjusted diluted EPS. The company's steady growth is also reflected in its 6% year-to-date growth. Furthermore, Standard Motor Products successfully completed its acquisition of Nissens Automotive following regulatory approval, a development expected to enhance both growth and operational synergies.
The company's Vehicle Control segment saw a sales increase of 5%, while Temperature Control and Engineered Solutions segments grew by 1.9% and 0.8% respectively. To support these developments, Standard Motor Products has secured a new 5-year, $750 million credit facility.
Despite these positive developments, the company faces challenges with softer production schedules and a decrease in cash generated from operations. Notably, the company paused share repurchases pending the acquisition of Nissens. However, the company's outlook remains optimistic with low to mid-single-digit sales growth expected for 2024, and adjusted EBITDA projected between 9% and 9.5%. It's worth noting that these projections do not include potential impacts from the Nissens acquisition.
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