NEW YORK ( TheStreet) -- China-based Sorl Auto Parts (SORL) stock has fallen 5.8% to $9.30 late afternoon as investors engaged in increased profit taking after the company announced a successful fourth quarter that blew past Wall Street consensus estimates.
Rodman & Renshaw analyst Amit Dayal attributes the stock price fall to profit taking.
"If you look at the volumes over last five days leading up to earnings," they were much higher, Dayal said. On Mar. 29, more than a million shares of Sorl had traded hands, compared with its three-month average volume of about 273,000.
Sorl Auto shot up 5.6% to $10.20 on the day that it reported a spike in its fourth-quarter profit.Sorl's stock-price drop Thursday isn't much of a concern for Dayal, who said that "fundamentally I'm not really concerned," about the stock. "I would use this as a buying opportunity. It is one of the better component names." Following Sorl's earnings report, Dayal reiterated his market outperform recommendation for the stock and was raising the price target for Sorl from $14 to $18. On Mar. 29, Sorl posted net income of $5 million, or 28 cents a share, for the quarter ended Dec. 31. That was nearly triple the $1.8 million, or 10 cents a share, the company earned a year earlier and above the 18 cents a share estimate derived from a Thomson Reuters poll of analysts. -- Reported by Andrea Tse in New York
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV