Price Don’t Lie: Is Selling 52-Week Stock Like Motorcar Parts of America, Inc. a Winning Strategy?

Price Don't Lie: Is Selling 52 Week Stock Like Motorcar Parts of America, Inc. a Winning Strategy?

The stock of Motorcar Parts of America, Inc. (NASDAQ:MPAA) hit a new 52-week low and has $21.16 target or 13.00% below today’s $24.32 share price. The 7 months bearish chart indicates high risk for the $435.27 million company. The 1-year low was reported on Nov, 3 by Barchart.com. If the $21.16 price target is reached, the company will be worth $56.59 million less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. About 107,241 shares traded hands or 19.76% up from the average. Motorcar Parts of America, Inc. (NASDAQ:MPAA) has declined 32.62% since April 1, 2016 and is downtrending. It has underperformed by 33.83% the S&P500.

Analysts await Motorcar Parts of America, Inc. (NASDAQ:MPAA) to report earnings on November, 14. They expect $0.56 earnings per share, down 6.67% or $0.04 from last year’s $0.6 per share. MPAA’s profit will be $10.02 million for 10.86 P/E if the $0.56 EPS becomes a reality. After $0.50 actual earnings per share reported by Motorcar Parts of America, Inc. for the previous quarter, Wall Street now forecasts 12.00% EPS growth.

Motorcar Parts of America, Inc. (NASDAQ:MPAA) Ratings Coverage

Out of 6 analysts covering Motorcar Parts of America (NASDAQ:MPAA), 5 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 83% are positive. Motorcar Parts of America has been the topic of 9 analyst reports since August 11, 2015 according to StockzIntelligence Inc. On Tuesday, August 11 the stock rating was maintained by B. Riley & Co with “Buy”. The firm has “Sell” rating by Zacks given on Monday, August 17. B. Riley & Co downgraded the stock to “Neutral” rating in Wednesday, August 10 report. As per Tuesday, November 10, the company rating was maintained by TH Capital. The firm earned “Buy” rating on Wednesday, September 9 by Sidoti. The firm has “Buy” rating given on Tuesday, August 11 by TH Capital. The stock of Motorcar Parts of America, Inc. (NASDAQ:MPAA) has “Buy” rating given on Monday, March 14 by CL King. The rating was maintained by Roth Capital with “Buy” on Tuesday, November 10.

According to Zacks Investment Research, “Mototcar Parts & Accessories Inc. is a leading manufacturer of replacement alternators and starters for imported and domestic cars and light trucks in the United States and Canada. The company’s full line of alternators and starters are remanufactured for vehicles imported from Japan, Germany, Sweden, France and Korea. The imported vehicles for which the company remanufactures alternators and starters also include vehicles produced by GM, Chrysler and Ford. The company also assembles and distributes ignition wire sets for imported and domestic cars and light trucks.”

Insitutional Activity: The institutional sentiment increased to 1.03 in Q2 2016. Its up 0.01, from 1.02 in 2016Q1. The ratio improved, as 25 funds sold all Motorcar Parts of America, Inc. shares owned while 40 reduced positions. 24 funds bought stakes while 43 increased positions. They now own 19.26 million shares or 1.62% less from 19.58 million shares in 2016Q1.
Moreover, Envestnet Asset Management has 0% invested in Motorcar Parts of America, Inc. (NASDAQ:MPAA) for 1,736 shares. Fmr Ltd Liability Corp has invested 0% of its portfolio in Motorcar Parts of America, Inc. (NASDAQ:MPAA). Neumeier Poma Inv Counsel Limited Co has invested 2.04% of its portfolio in Motorcar Parts of America, Inc. (NASDAQ:MPAA). Blackrock Ltd owns 18,473 shares or 0% of their US portfolio. Wells Fargo & Mn holds 944,751 shares or 0.01% of its portfolio. Magee Thomson Investment Ltd reported 23 shares or 0% of all its holdings. Huntington State Bank holds 0% or 65 shares in its portfolio. Granite Investment Prtnrs Limited Co accumulated 94,997 shares or 0.2% of the stock. Royal Bank & Trust Of Canada accumulated 71,373 shares or 0% of the stock. Cardinal Capital Mgmt Ltd Liability Company Ct has 0.36% invested in the company for 269,926 shares. Sector Pension Inv Board has invested 0% of its portfolio in Motorcar Parts of America, Inc. (NASDAQ:MPAA). Cadence Cap Mgmt Ltd Liability has 19,106 shares for 0.04% of their US portfolio. Mckinley Capital Management Ltd Limited Liability Company Delaware accumulated 0% or 290 shares. Ls Advisors Lc last reported 0% of its portfolio in the stock. North Star Invest holds 0.17% of its portfolio in Motorcar Parts of America, Inc. (NASDAQ:MPAA) for 34,950 shares.

More important recent Motorcar Parts of America, Inc. (NASDAQ:MPAA) news were published by: Seekingalpha.com which released: “Motorcar Parts Of America – An American Wonder Or A Bust?” on November 03, 2016, also Marketwatch.com published article titled: “Motorcar Parts of America Inc.”, Globenewswire.com published: “Motorcar Parts of America Launches Brake Power Booster Product Line; Acquires …” on August 08, 2016. More interesting news about Motorcar Parts of America, Inc. (NASDAQ:MPAA) was released by: Seekingalpha.com and their article: “Motorcar Parts Of America: Time To Re-Kick The Tires” with publication date: June 16, 2016.

MPAA Company Profile

Motorcar Parts of America, Inc., incorporated on April 2, 1968, is a manufacturer, remanufacturer and distributor of automotive aftermarket parts, including alternators, starters, wheel hub assembly, brake master cylinders, brake power boosters and turbochargers utilized in imported and domestic passenger vehicles, light trucks and heavy-duty applications. The Firm sells its products in North America to auto parts retail and traditional warehouse chains and to automobile manufacturers for both their aftermarket programs and their warranty replacement programs (OES). The Company’s products meet equipment maker specifications. The Firm produces both new and remanufactured units. It recycles materials, including metal from the used cores and corrugated packaging. The Firm carries over 13,000 stock keeping units (SKUs) for automotive parts that are sold under its customers’ recognized private label brand names and its Quality-Built, Pure Energy, Xtreme, Reliance and other brand names.

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