JEFFERY DARBY At Dorman Prods Executes Options Exercise, Realizing $348K

A large exercise of company stock options by JEFFERY DARBY, SVP at Dorman Prods DORM was disclosed in a new SEC filing on November 25, as part of an insider exercise.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that DARBY, SVP at Dorman Prods, a company in the Consumer Discretionary sector, just exercised stock options worth 4,422 shares of DORM stock with an exercise price of $61.86.

The Tuesday morning market activity shows Dorman Prods shares down by 0.71%, trading at $140.7. This implies a total value of $348,630 for DARBY's 4,422 shares.

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.

Dorman Prods's Financial Performance

Revenue Growth: Over the 3 months period, Dorman Prods showcased positive performance, achieving a revenue growth rate of 3.19% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Holistic Profitability Examination:

• Gross Margin: Achieving a high gross margin of 40.46%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Dorman Prods's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.81.

Debt Management: Dorman Prods's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.51.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 23.74, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.24 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 14.33, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Illuminating the Importance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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.