On June 14, 2024, BISON CAPITAL PARTNERS VI-A, L.P., a Director and 10% Owner, purchased 150,000 shares of Motorcar Parts of America Inc (MPAA, Financial). This transaction was documented in a recent SEC Filing. Following this acquisition, the insider now holds a total of 250,000 shares in the company.
Motorcar Parts of America Inc specializes in the manufacturing, remanufacturing, and distribution of aftermarket automotive parts. Its products are critical in the maintenance and repair of vehicles, serving both commercial and consumer markets.
The recent purchase by the insider is part of a broader trend observed over the past year, where there have been 16 insider buys and only 2 insider sells. The insider's activities can often provide insights into the company's potential future performance.
On the valuation front, Motorcar Parts of America Inc's shares were priced at $5.83 on the day of the transaction. The company has a market cap of $119.745 million. According to the GF Value, the intrinsic value of the stock is estimated at $14.98, indicating a price-to-GF-Value ratio of 0.39. This suggests that the stock might be undervalued, warranting caution as it could be a Possible Value Trap, Think Twice scenario.
The GF Value is calculated based on historical multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, adjusted for the company’s past performance and expected future business outcomes.
Overall, the insider's recent buying activity, combined with the company's current valuation metrics, provides a significant point of interest for investors monitoring Motorcar Parts of America Inc.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
