Dorman Products Director Sells Over $2.7 Million in Company Stock

Steven L. Berman, a director at Dorman Products, Inc., has recently sold a notable portion of his shares in the company. The transactions occurred on September 18 and 19, amounting to over $2.7 million in stock sales at prices ranging from $115.11 to $118.52 per share.

On September 18, Berman sold 3,571 shares at an average price of $115.11. Additionally, he sold 8,560 shares at $116.42 and 1,547 shares at $117.52 on the same day, followed by an offloading of 2,393 shares at an average price of $118.52. The next day, he continued the sales with 3,572 shares at an average price of $117.15 and another 3,571 shares at $118.08.

Following these sales, Berman’s direct holdings in Dorman Products decreased, but he still retains a substantial stake, with 881,513 shares remaining. Furthermore, Berman has indirect ownership through trusts and a 401(k) plan, totaling 24,587 shares associated with the company’s retirement plan.

Investors often keep an eye on insider transactions to gauge executives’ and directors’ sentiments toward their company’s stock. Although the reasons for Berman’s sale have not been disclosed, these transactions have been reported in accordance with U.S. Securities and Exchange Commission regulations.

As investors assess the implications of Berman’s significant stock sale, it is important to consider Dorman Products’ recent performance and stock valuation. The company boasts a market capitalization of $3.53 billion and has experienced revenue growth of 4.94% over the past twelve months as of the second quarter of 2024. With a gross profit margin of 38.8%, Dorman Products demonstrates effective cost management relative to its revenue.

Notably, Dorman Products has achieved a Piotroski Score of 9, indicating a strong financial position across various accounting measures. This, combined with a notable return of 47.75% over the past year, suggests robust fundamental performance. The company’s shares are currently trading at a relatively low price-to-earnings (P/E) ratio of 20.04, alongside a PEG ratio of just 0.21, hinting at possible undervaluation given its earnings growth prospects.

Despite Berman’s recent sale, Dorman Products continues to be an attractive option for investors, particularly given a 24.79% total return over the last three months. Analysts forecast profitability for the year, and the company maintains liquid assets that exceed its short-term obligations, indicating a stable financial outlook.

Currently, Dorman Products is trading close to its 52-week high, at 96.5% of this benchmark, with the last closing price at $117.5. This price is slightly above the estimated fair value of $108.8 while remaining below an analyst target of $115, providing useful context for investors considering the stock’s position in the market.

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