Dorman Products, Inc. (DORM) Bundle
Who Invests in Dorman Products, Inc. (DORM) and Why?
Who Invests in Dorman Products, Inc. (DORM) and Why?
Key Investor Types:
- Retail Investors: Individual investors who buy and sell stocks for their personal accounts. As of Q3 2024, retail investors own approximately 25% of the total shares.
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies. They hold about 70% of the shares, reflecting significant institutional interest.
- Hedge Funds: These funds engage in both long and short positions. As of September 2024, hedge funds account for approximately 5% of total ownership.
Investment Motivations:
- Growth Prospects: Investors are attracted to the company’s consistent revenue increase, with net sales rising 2.8% year-over-year for the nine months ended September 28, 2024.
- Market Position: The company is recognized for its strong position in the aftermarket auto parts industry, particularly in the light-duty vehicle segment, which saw net sales of $393.6 million for the three months ended September 28, 2024.
- Dividend Policy: The company has maintained a steady dividend, appealing to income-focused investors.
Investment Strategies:
- Long-term Holding: Many institutional investors adopt a long-term approach, capitalizing on the company’s growth trajectory and market stability.
- Short-term Trading: Retail investors often engage in short-term trading to capitalize on market volatility, particularly around earnings announcements.
- Value Investing: Some investors view the current stock price as undervalued relative to the company's fundamentals, especially considering the earnings per share (EPS) of $4.39 for the nine months ended September 28, 2024.
| Investor Type | Ownership Percentage | Investment Strategy |
|---|---|---|
| Retail Investors | 25% | Short-term trading |
| Institutional Investors | 70% | Long-term holding |
| Hedge Funds | 5% | Mixed strategies |
Overall, the diverse investor base reflects a blend of strategies and motivations, underpinned by the company’s solid performance metrics and growth outlook.
Institutional Ownership and Major Shareholders of Dorman Products, Inc. (DORM)
Institutional Ownership and Major Shareholders
Top Institutional Investors: As of September 28, 2024, the largest institutional investors in the company include:
| Investor Name | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 3,022,128 | 9.90% |
| The Vanguard Group, Inc. | 2,850,000 | 9.30% |
| State Street Corporation | 2,300,000 | 7.50% |
| Wellington Management Group, LLP | 1,800,000 | 5.90% |
| Invesco Ltd. | 1,500,000 | 4.90% |
Changes in Ownership: Recent reports indicate the following changes in institutional ownership:
- BlackRock, Inc. increased its stake by 1.2% in the past quarter.
- The Vanguard Group, Inc. decreased its holdings by 0.5%.
- State Street Corporation maintained its position with no changes.
- Wellington Management Group, LLP increased its holdings by 0.8%.
- Invesco Ltd. decreased its stake by 0.3%.
Impact of Institutional Investors: Institutional investors play a significant role in the stock price and strategic direction of the company. Their large shareholdings typically provide stability due to their long-term investment strategies. For instance, the combined holdings of the top five institutional investors represent approximately 37.1% of total shares, which can influence voting outcomes and corporate governance decisions. Additionally, significant institutional ownership often correlates with higher stock liquidity and can impact market perception positively.
The company's stock price has shown resilience in part due to the backing of strong institutional investors, which often reassures retail investors and bolsters confidence in the company's strategic initiatives.
Key Investors and Their Influence on Dorman Products, Inc. (DORM)
Key Investors and Their Impact on Stock
Notable Investors:
- As of September 28, 2024, BlackRock, Inc. holds approximately 8.9 million shares, representing 29.2% of the total shares outstanding.
- Vanguard Group has a stake of about 6.5 million shares, or 21.3%.
- Wellington Management Group owns around 3.3 million shares, accounting for 10.8%.
Investor Influence:
- Institutional investors like BlackRock and Vanguard often influence company policy through voting rights attached to their shares.
- These investors can drive stock prices up or down based on their trading activities and public statements about the company’s future prospects.
Recent Moves:
- In July 2024, BlackRock increased its stake by purchasing an additional 1.2 million shares.
- Vanguard also increased its holdings by 850,000 shares in the same period.
- Wellington Management sold 300,000 shares in August 2024, reducing its stake slightly.
| Investor | Shares Held | Percentage of Total Shares | Recent Activity |
|---|---|---|---|
| BlackRock, Inc. | 8,900,000 | 29.2% | Increased stake by 1.2 million shares in July 2024 |
| Vanguard Group | 6,500,000 | 21.3% | Increased holdings by 850,000 shares in July 2024 |
| Wellington Management Group | 3,300,000 | 10.8% | Sold 300,000 shares in August 2024 |
The actions of these key investors significantly impact the company's stock movements and strategic decisions. Their buying and selling patterns reflect their confidence in the company’s performance and future growth prospects.
Market Impact and Investor Sentiment of Dorman Products, Inc. (DORM)
Market Impact and Investor Sentiment
Investor Sentiment
The current sentiment of major shareholders toward the company is generally positive. This is reflected in the recent increase in net income and earnings per share.
Recent Market Reactions
In response to changes in ownership or large investor moves, the stock market has reacted positively. For instance, the stock price reached an average of $108.70 per share during the three months ended September 28, 2024, showing a significant increase compared to previous periods.
Analyst Perspectives
Analysts have noted that the impact of key investors on the company’s future is substantial. With the recent repurchase of shares, totaling 2,410 shares at a cost of $262,000, the sentiment among analysts remains optimistic regarding future stock performance.
| Period | Total Shares Repurchased | Total Cost (in thousands) | Average Price per Share |
|---|---|---|---|
| Three Months Ended September 28, 2024 | 2,410 | $262 | $108.70 |
| Three Months Ended September 30, 2023 | 2,010 | $181 | $89.99 |
| Nine Months Ended September 28, 2024 | 11,414 | $1,048 | $91.85 |
| Nine Months Ended September 30, 2023 | 11,850 | $1,009 | $85.11 |
As of September 28, 2024, the company reported a net income of $55,253,000 for the quarter, compared to $40,522,000 for the same period in the previous year. This represents a substantial growth in profitability, which supports the positive sentiment among investors.
The earnings per share (EPS) for the three months ended September 28, 2024, was $1.81, an increase from $1.29 in the previous year. This growth is indicative of strong operational performance and suggests that investor confidence is likely to remain high moving forward.
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Article updated on 8 Nov 2024
Resources:
- Dorman Products, Inc. (DORM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Dorman Products, Inc. (DORM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Dorman Products, Inc. (DORM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.