Back to top

Analyst Blog

Standard Motor Product Inc. (SMP - Analyst Report) announced that its Board of Directors has approved the repurchase of an additional $5 million of common stock under the existing share repurchase program. The newly approved authorization is an addition to the previously completed $5 million repurchase program authorized by the Board of Directors on August 25, 2011.

Standard Motor will repurchase the shares periodically in the open market or through private transaction. It will be funded by the company’s revolving credit facility.  

The repurchased shares will be considered as treasury stock and will be used for general corporate purposes including the plan for equity compensation. However, the repurchase program can be stopped or suspended at any point of time.

Standard Motor, based in Long Island City in New York was founded in 1919. It is one of the leading manufacturers, distributors and marketers of automotive replacement parts in the U.S. Further it enjoys strong brand recognition globally.

Standard Motor is in an advantageous position due to the recent acquisition of Compressor Works, which is a manufacturer of Temperature Control products with a capacity of $60 million. The acquisition will lead to cost savings and boost earnings of the company in 2012. However, strong competition may ruin the company’s margins. Its competitors include Visteon Corp. (VC - Snapshot Report) and Denso Corp.

As a result, the company retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) “Hold” rating and we have a long-term (more than 6 months) “Neutral” recommendation on the stock.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
TRAVELCENTE… TA 11.84 +6.38%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%