Steven L. Berman, a director at Dorman Products , Inc. (NASDAQ:DORM), has sold a significant portion of his holdings in the company. The recent transactions, which took place on September 18 and 19, involved the sale of company stock totaling over $2.7 million. The sales were executed at varying prices, with a range between $115.11 and $118.52 per share.
The first set of transactions occurred on September 18, with Berman selling 3,571 shares at an average price of $115.11. On the same day, additional sales included 8,560 shares at $116.42 and 1,547 shares at $117.52. The selling continued with 2,393 shares being offloaded at an average price of $118.52. The following day, Berman sold another batch of shares, with 3,572 shares going for an average of $117.15 and 3,571 shares at $118.08.
After these transactions, Berman's direct holdings in Dorman Products have been reduced, yet he still retains a substantial number of shares. The filings indicate that Berman's remaining direct ownership stands at 881,513 shares. Additional footnotes in the report highlight that Berman also has indirect ownership through trusts and a 401(k) plan, which includes 24,587 shares represented by units in the company's 401(k) Retirement Plan and Trust.
Investors often monitor insider transactions for insights into the perspectives of company executives and directors regarding their firm's stock. While the reasons behind Berman's sale have not been disclosed, the transactions are duly reported in compliance with SEC regulations.
InvestingPro Insights
As investors digest the news of Steven L. Berman's significant stock sale in Dorman Products, Inc. (NASDAQ:DORM), it's worth considering the company's recent performance and stock valuation through the lens of InvestingPro metrics and tips. Dorman Products has demonstrated a robust financial position, with a market capitalization of $3.53 billion and a healthy revenue growth of 4.94% over the last twelve months as of Q2 2024. The company's gross profit margin stands at an impressive 38.8%, reflecting its efficiency in managing costs relative to its revenue generation.
One InvestingPro Tip that stands out for Dorman Products is its perfect Piotroski Score of 9, indicating a strong financial position across multiple accounting measures. This metric, along with a reported high return over the last year of 47.75%, suggests that the company is performing well fundamentally. Additionally, the company's shares are trading at a low P/E ratio relative to near-term earnings growth, with the adjusted P/E ratio as of Q2 2024 being 20.04, and its PEG ratio at a mere 0.21, hinting at potential undervaluation relative to its earnings growth prospects.
Despite Berman's sale, Dorman Products remains an interesting prospect for investors, especially considering the company's strong return over the last three months, indicated by a 24.79% price total return. Furthermore, with analysts predicting profitability for the year, and the company's liquid assets exceeding short-term obligations, it suggests a stable financial outlook. For those interested in a deeper dive, InvestingPro offers a wealth of additional insights, with 11 more InvestingPro Tips available at: https://www.investing.com/pro/DORM.
Lastly, it's noteworthy that Dorman Products is trading near its 52-week high, at 96.5% of this threshold, with the previous close at $117.5. This price point is just above the InvestingPro Fair Value estimate of $108.8 but below the analyst target of $115. These valuation metrics can provide guidance for investors considering the stock's current positioning in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.