Dorman products director sells over $25k in company stock

Steven L. Berman, a director at Dorman Products , Inc. (NASDAQ:DORM ), a company specializing in motor vehicle parts and accessories, has sold a portion of his holdings in the company. On September 20, 2024, Berman sold 215 shares of common stock at an average price of $117.01, totaling over $25,157.

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

Following the sale, Berman's direct holdings in Dorman Products stand at 881,298 shares. Additionally, the report included information on shares held indirectly by Berman. Specifically, 100,000 shares are held in a trust for the benefit of his grandchildren, with Berman's spouse co-trustee of the trust. He disclaims beneficial ownership of these shares, and the filing should not be viewed 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 unitized stock fund through the issuer's 401(k) Retirement Plan and Trust. This fund consists of varying amounts of cash and common stock.

The sale by a company insider such as a director often garners attention from investors as they monitor insider transactions for insights into executive 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 outlook on the company's future.

Investors and followers of Dorman Products will continue to watch insider transactions as part of their assessment of the company's stock performance and overall health.InvestingPro Insights


As investors evaluate the recent insider sale by Steven L. Berman at Dorman Products, Inc., it is essential to consider the company's financial health and market performance. Dorman Products has demonstrated robust financial metrics, which can offer investors a broader context beyond insider transactions. Notably, the company boasts a perfect Piotroski Score of 9, indicating strong financial health and suggesting that the fundamentals could be aligned for positive performance.

From a valuation standpoint, 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 has adjusted slightly downwards to 20.01 over the last twelve months as of Q2 2024, reflecting a stable earnings outlook. Additionally, the PEG Ratio during the same period stands at a compelling 0.21, hinting at potentially undervalued stock given the earnings growth projections.

Investors tracking the company's stock movement will note that Dorman Products has experienced a high return over the last year, with a 55.61% price total return. This strong performance is further supported by a significant three-month price total return of 22.33%, showcasing the stock's recent momentum. Moreover, the stock is trading near its 52-week high, at 96.45% of the peak price, which aligns with the positive trend observed in its returns.

For those seeking further insights, InvestingPro offers additional tips on Dorman Products, providing a comprehensive analysis that includes metrics such as liquidity, debt levels, and profitability forecasts. Currently, there are 9 additional InvestingPro Tips available for Dorman Products, which can be accessed for more in-depth research and investment decision-making.

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Source: Investing.com