Motorcar Parts of America Inc (MPAA)

Donald Smith & CO. Inc. has acquired a new position in Motorcar Parts of America, Inc. (NASDAQ:MPAA), purchasing over 1.2 million shares valued at approximately $18.96 million, representing a 6.54% stake. This investment comes amidst mixed analyst ratings and the company's recent quarterly loss of $0.71 per share, which missed consensus estimates. Institutional investors and hedge funds now collectively own 83.48% of the company's stock.

Freedom Broker analysts maintain a "Buy" rating on Motorcar Parts of America (MPAA) but cut the 12-month target price from $18 to $16 after the company reported a weak first quarter for fiscal 2027. Despite the poor results, which included a revenue decline and net loss, management reaffirmed its full-year guidance, anticipating significant growth in the second half of the year driven by new contracts and operational improvements. Analysts emphasize the need for MPAA to demonstrate conversion of new contracts into shipments and improved cash flow to mitigate risks associated with order delays and currency fluctuations.

Freedom Broker has lowered its price target for Motorcar Parts of America (MPAA) to $16.00 from $18.00, while maintaining a Buy rating, following the company's weaker-than-expected fiscal first-quarter 2027 results. The underperformance was attributed to various factors including customer order timing and competitor inventory liquidation, despite management reaffirming its fiscal 2027 guidance. Analysts predict the company will return to profitability this year, with an EPS forecast of $2.01 for fiscal 2027.

This article examines three U.S.-listed auto parts stocks—Dana (DAN), Dauch (DCH), and Motorcar Parts of America (MPAA)—that could offer shelter from potential U.S.-Canada tariff risks. Each company is highlighted for its U.S.-centric operations or aftermarket focus, which could make them more resilient to cross-border trade friction. The article provides an overview of their operations, market caps, and the specific opportunities and risks associated with each, emphasizing how they might benefit if automakers shift towards domestic suppliers.

Motorcar Parts of America (MPAA) reported its Q1 2027 earnings, with net sales of $168.0 million and a net loss of $13.4 million. Despite the Q1 headwinds due to order timing and competitor inventory liquidations, the company reaffirmed its fiscal 2027 guidance, anticipating net sales between $780 million to $800 million and operating income between $86 million to $91 million. The company expects growth driven by the relaunch of its Centric Parts brand, relocation of heavy-duty operations to Mexico, and favorable aftermarket industry dynamics.