In a recent transaction, Steven L. Berman, a director at Dorman Products , Inc. (NASDAQ:DORM), sold a total of 627 shares of the company's common stock. The sales took place over two days, with 179 shares sold on September 26 and 448 shares on September 27, 2024.
The transactions were executed at weighted average prices, ranging from $115.50 to $115.6550 per share, resulting in an aggregate sale amount exceeding $72,000. Following these sales, Berman's direct holdings in Dorman Products stand at 878,825 shares.
The transactions were disclosed in a regulatory filing with the Securities and Exchange Commission. The filing also included a footnote indicating that the reported prices are weighted averages, and detailed information about the number of shares sold at each price within the range is available upon request.
In addition to the reported sales, the filing noted holdings in various trusts and funds. Specifically, 100,000 shares are held in trust for the benefit of Berman's grandchildren, with Berman's spouse co-trustee. Berman disclaims beneficial ownership of these shares. Another 24,587 shares are associated with the Issuer's 401(k) Retirement Plan and Trust, represented by units that consist of both cash and common stock.
These transactions provide a snapshot of insider activity at Dorman Products, offering investors insight into the movements of company shares by one of its directors.
InvestingPro Insights
To provide additional context to Steven L. Berman's recent stock sale, let's examine some key financial metrics and insights for Dorman Products, Inc. (NASDAQ:DORM).
According to InvestingPro data, Dorman Products has a market capitalization of $3.49 billion, positioning it as a mid-cap company in the automotive parts industry. The company's P/E ratio stands at 20.6, which is relatively moderate for its sector.
One of the most notable InvestingPro Tips is that Dorman Products has a perfect Piotroski Score of 9. This score, developed by financial expert Joseph Piotroski, indicates strong financial health and potential for future performance. This high score could provide some reassurance to investors in light of the insider sale.
Another relevant InvestingPro Tip highlights that Dorman Products is trading at a low P/E ratio relative to its near-term earnings growth. This suggests that the stock may be undervalued compared to its earnings potential, which could be of interest to value-oriented investors.
The company's financial performance has been robust, with a revenue of $1.95 billion over the last twelve months as of Q2 2024, representing a growth of 4.94%. Moreover, Dorman Products has demonstrated strong profitability, with a gross profit margin of 38.8% and an operating income margin of 16.72% over the same period.
It's worth noting that Dorman Products has shown impressive stock performance, with a 49.31% price total return over the past year. This strong return, coupled with the company's solid financial metrics, may provide context for why a director might choose to realize some gains through a stock sale.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Dorman Products, providing a deeper understanding of the company's financial position and market performance.
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