Dorman Products Surpasses Analyst Target as Investors Evaluate Next Steps
In recent trading, shares of Dorman Products Inc (Symbol: DORM) have crossed above the average analyst 12-month target price of $134.50, changing hands for $135.64/share. When a stock reaches the price set by analysts, they must decide whether to downgrade their rating or adjust their target to a higher level. This decision often hinges on the company’s underlying business trends that may be driving the stock higher. If the outlook is promising, it might signal a need for analysts to raise their price targets.
Currently, four analysts within the Zacks coverage universe contribute to the average target for Dorman Products Inc. However, this average represents a broad spectrum, as individual analyst targets vary significantly. For instance, one analyst has a conservative target of $116.00, while another is optimistic with a target as high as $153.00. The standard deviation among these targets is $15.11, indicating varied opinions on the stock.
The key reason for examining the average DORM price target is to leverage the “wisdom of crowds.” This approach consolidates the insights of multiple analysts rather than relying on the views of a single expert. With DORM’s share price exceeding the average target of $134.50, investors are prompted to reassess the company. It raises the question: Is $134.50 a stepping stone toward an even higher target, or has the valuation reached a point where it’s wise to pull back on investments? Below is a table that outlines current analyst ratings for Dorman Products Inc:
| Recent DORM Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 3 | 3 | 3 | 2 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 1 | 1 | 1 | 1 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.5 | 1.5 | 1.5 | 1.67 |
The average rating in the last row indicates a scale from 1 to 5, where 1 represents Strong Buy and 5 indicates Strong Sell. Data for this article was sourced from Zacks Investment Research via Quandl.com. Stay updated with the latest Zacks research report on DORM — FREE.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
