Witnessing An Insider Decision, Gregory Bowen Exercises Options Valued At $87K At Dorman Products

A substantial insider activity was disclosed on September 16, as Bowen, VP at Dorman Products (NASDAQ:DORM), reported the exercise of a large sell of company stock options.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Bowen, VP at Dorman Products, a company in the Consumer Discretionary sector, just exercised stock options worth 1,453 shares of DORM stock with an exercise price of $101.45.

The Tuesday morning update indicates Dorman Products shares down by 0.0%, currently priced at $161.86. At this value, Bowen's 1,453 shares are worth $87,775.

Get to Know Dorman Products Better

Dorman Products Inc is a supplier of original equipment parts for automobiles. It offers 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, Super ATV, etc., through aftermarket retailers, warehouse distributors, specialty markets, and salvage yards. The company operates through three business segments, which include Light Duty, Heavy Duty, and Specialty Vehicle. A majority of its revenue is generated from the Light Duty segment, which designs and markets replacement parts and fasteners mainly for passenger cars and light trucks. Geographically, it derives key revenue from the United States.

Breaking Down Dorman Products's Financial Performance

Revenue Growth: Over the 3 months period, Dorman Products showcased positive performance, achieving a revenue growth rate of 7.56% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Navigating Financial Profits:

• Gross Margin: Achieving a high gross margin of 40.58%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.92, Dorman Products showcases strong earnings per share.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.4.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 22.05 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.39, Dorman Products's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Dorman Products's EV/EBITDA ratio, lower than industry averages at 13.94, indicates attractively priced shares.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Insider Activity Matters in Finance

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

Transaction Codes Worth Your Attention

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Products's Insider Trades.

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