Genuine Parts (NYSE:GPC) Shares Down 4.7% – Here’s Why

Genuine Parts (NYSE:GPC)’s stock price fell 4.7% during mid-day trading on Tuesday . The company traded as low as $119.70 and last traded at $118.98. 356,671 shares were traded during mid-day trading, a decline of 77% from the average session volume of 1,524,363 shares. The stock had previously closed at $124.90.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. The Goldman Sachs Group lowered their target price on Genuine Parts from $162.00 to $138.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 23rd. Redburn Atlantic raised shares of Genuine Parts to a “hold” rating in a report on Monday, November 11th. Loop Capital started coverage on shares of Genuine Parts in a research note on Thursday, January 16th. They issued a “buy” rating and a $155.00 target price for the company. Evercore ISI dropped their price target on shares of Genuine Parts from $128.00 to $125.00 and set an “in-line” rating on the stock in a research note on Wednesday. Finally, Northcoast Research downgraded shares of Genuine Parts from a “buy” rating to a “neutral” rating in a report on Friday, January 17th. Eight equities research analysts have rated the stock with a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, Genuine Parts currently has an average rating of “Hold” and a consensus price target of $137.63.

Genuine Parts Stock Performance

The company’s fifty day simple moving average is $118.25 and its 200 day simple moving average is $127.30. The stock has a market capitalization of $17.16 billion, a P/E ratio of 19.07 and a beta of 0.94. The company has a current ratio of 1.17, a quick ratio of 0.57 and a debt-to-equity ratio of 0.81.

Genuine Parts (NYSE:GPC) last posted its quarterly earnings data on Tuesday, February 18th. The specialty retailer reported $1.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.54 by $0.07. Genuine Parts had a return on equity of 24.99% and a net margin of 3.85%. The company had revenue of $5.77 billion during the quarter, compared to analyst estimates of $5.71 billion. During the same quarter last year, the company earned $2.26 earnings per share. As a group, sell-side analysts forecast that Genuine Parts will post 7.98 earnings per share for the current fiscal year.

Genuine Parts Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 2nd. Shareholders of record on Friday, March 7th will be given a dividend of $1.03 per share. The ex-dividend date of this dividend is Friday, March 7th. This is a positive change from Genuine Parts’s previous quarterly dividend of $1.00. This represents a $4.12 annualized dividend and a yield of 3.34%. Genuine Parts’s payout ratio is presently 61.82%.

Insider Transactions at Genuine Parts

In other Genuine Parts news, Director Wendy B. Needham sold 1,608 shares of the company’s stock in a transaction that occurred on Friday, December 13th. The stock was sold at an average price of $120.78, for a total value of $194,214.24. Following the completion of the sale, the director now owns 11,357 shares of the company’s stock, valued at $1,371,698.46. This represents a 12.40 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.37% of the company’s stock.

Institutional Investors Weigh In On Genuine Parts

A number of institutional investors have recently made changes to their positions in the business. Norges Bank bought a new stake in Genuine Parts in the fourth quarter worth $206,645,000. Junto Capital Management LP bought a new stake in shares of Genuine Parts in the 4th quarter valued at about $94,868,000. Equity Investment Corp purchased a new stake in Genuine Parts during the 4th quarter valued at about $84,128,000. International Assets Investment Management LLC grew its position in Genuine Parts by 14,222.1% during the 3rd quarter. International Assets Investment Management LLC now owns 584,342 shares of the specialty retailer’s stock worth $81,621,000 after acquiring an additional 580,262 shares during the last quarter. Finally, Alyeska Investment Group L.P. increased its stake in Genuine Parts by 204.7% in the 4th quarter. Alyeska Investment Group L.P. now owns 789,050 shares of the specialty retailer’s stock worth $92,129,000 after purchasing an additional 530,057 shares during the period. Hedge funds and other institutional investors own 78.83% of the company’s stock.

Genuine Parts Company Profile

Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. It operates in two segments: Automotive Parts Group and Industrial Parts Group segments. The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, and heavy duty equipment; and equipment and parts used by repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, and individuals.