It was reported on May 20, that JOHN GAVIN, Board Member at Dorman Products DORM executed a significant insider sell, according to an SEC filing.
What Happened: GAVIN’s decision to sell 2,900 shares of Dorman Products was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $380,439.
The latest market snapshot at Wednesday morning reveals Dorman Products shares down by 0.0%, trading at $130.5.
Delving into Dorman Products’s Background
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.
Financial Milestones: Dorman Products’s Journey
Revenue Growth: Dorman Products displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 8.32%. This indicates a notable increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Profitability Metrics:
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Gross Margin: The company maintains a high gross margin of 40.91%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): Dorman Products’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.88.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.42.
Analyzing Market Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 18.75 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 1.97 as compared to the industry average, the stock might be considered overvalued based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 11.81, Dorman Products demonstrates exemplary market valuation, surpassing industry averages.
Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
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Unmasking the Significance of Insider Transactions
Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
A Closer Look at Important Transaction Codes
When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals 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.
