Product executive Dorman sells more than $25,000 in the company’s stock to Investing.com

Steven L. Berman, director at Dorman products Inc. (NASDAQ: ), an automotive parts and accessories company, sold part of its holdings in the company. On September 20, 2024, Berman sold 215 shares of common stock at an average price of $117.01, amounting to more than $25,157.

The transaction was part of a series of sales made at prices ranging from $117.00 to $117.0650 per share. According to the details provided, these sales were made in several transactions at different prices in this range.

Following the sale, Berman’s direct holdings in Dorman Products amount to 881,298 shares. In addition, the report included information about shares held indirectly by Berman. Specifically, 100,000 shares are held in a trust for the benefit of his grandchildren, with Berman’s spouse serving as co-trustee of the trust. He disclaims beneficial ownership of these shares, and the filing should not be construed as an admission of beneficial ownership for Section 16 or any other purposes.

Berman also has an indirect interest in 24,587 shares represented by units in a unit stock fund through the issuer’s Retirement Plan and 401(k) Trust. This fund consists of varying amounts of cash and common stock.

Selling by a company insider, such as an executive, often attracts the attention of investors, as they monitor insider trading for information about the executive’s confidence in the company’s future performance. However, the reasons for such sales can vary widely, from personal financial planning to diversification strategies, and do not necessarily reflect the director’s view of the company’s future.

Investors and followers of Dorman Products will continue to watch insider trading as part of their assessment of the company’s stock performance and overall health.

InvestingPro Insights

As investors evaluate Steven L. Berman’s recent sale of Dorman Products, Inc., it is critical to consider the company’s financial health and market performance. Dorman Products has demonstrated strong financials that can provide investors with broader context beyond insider trading. Notably, the company boasts a perfect Piotroski score of 9, indicating strong financial health and suggesting that the fundamentals could be aligned for a positive performance.

From a valuation perspective, Dorman Products is trading at a low P/E ratio of 21.14 relative to its near-term earnings growth, which may signal an attractive investment opportunity for value-oriented investors. The company’s P/E ratio adjusted slightly downward to 20.01 over the trailing twelve months through Q2 2024, reflecting a stable earnings outlook. Additionally, the PEG ratio over the same period stands at a compelling 0.21, suggesting a potentially undervalued stock given earnings growth forecasts.

Investors following the company’s stock movement will note that Dorman Products has seen a strong return over the past year, with a total price return of 55.61%. This strong performance is also supported by a significant three-month total price return of 22.33%, showing the stock’s recent momentum. Moreover, the stock is trading near its 52-week high at 96.45% of its peak price, which is in line with the positive trend seen in its returns.

For those looking for additional information, InvestingPro offers additional advice on Dorman products, providing a comprehensive analysis that includes metrics such as liquidity, debt levels and profitability forecasts. There are currently 9 additional InvestingPro tips available for Dorman products that can be accessed for more in-depth research and investment decision making.

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