Genuine Parts (NYSE:GPC) Shares Down 4.7% - What's Next?

Key Points

• Genuine Parts shares fell 4.7% on Monday, trading as low as $126 and closing near $126.34 on lighter-than-normal volume.
• Wall Street sentiment remains mixed: several firms trimmed price targets, but the stock still carries a Moderate Buy consensus with an average target of $144.50.
• The company recently beat quarterly earnings expectations and continues paying a dividend, with a 3.3% yield and an annualized payout of $4.25 per share.

Genuine Parts Company (NYSE:GPC - Get Free Report)'s stock price traded down 4.7% on Monday . The stock traded as low as $126.00 and last traded at $126.3380. 507,185 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 1,720,859 shares. The stock had previously closed at $132.57.

Analysts Set New Price Targets

Several research analysts have commented on GPC shares. UBS Group decreased their price objective on shares of Genuine Parts from $135.00 to $125.00 and set a "neutral" rating for the company in a report on Wednesday, April 22nd. Weiss Ratings reiterated a "hold (c-)" rating on shares of Genuine Parts in a research report on Wednesday, June 24th. Truist Financial decreased their price target on shares of Genuine Parts from $127.00 to $124.00 and set a "hold" rating for the company in a research note on Wednesday, April 22nd. Zacks Research upgraded shares of Genuine Parts from a "strong sell" rating to a "hold" rating in a report on Monday, May 25th. Finally, DA Davidson raised their price objective on shares of Genuine Parts from $145.00 to $150.00 and gave the stock a "buy" rating in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $144.50.

Genuine Parts Stock Down 3.5%

The company's 50-day moving average is $104.37 and its 200 day moving average is $115.63. The company has a market capitalization of $17.60 billion, a PE ratio of 297.78 and a beta of 0.63. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.48 and a current ratio of 1.09.

Genuine Parts (NYSE:GPC - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The specialty retailer reported $1.77 earnings per share for the quarter, beating analysts' consensus estimates of $1.75 by $0.02. The business had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.17 billion. Genuine Parts had a net margin of 0.24% and a return on equity of 22.28%. Genuine Parts's revenue was up 6.8% compared to the same quarter last year. During the same period last year, the business earned $1.75 EPS. Genuine Parts has set its FY 2026 guidance at 7.500-8.000 EPS. As a group, analysts anticipate that Genuine Parts Company will post 7.69 EPS for the current year.

Genuine Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Friday, June 5th were issued a $1.0625 dividend. This represents a $4.25 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date was Friday, June 5th. Genuine Parts's payout ratio is presently 988.37%.

Insiders Place Their Bets

In related news, insider James F. Howe sold 415 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $104.33, for a total value of $43,296.95. Following the transaction, the insider directly owned 25,589 shares of the company's stock, valued at approximately $2,669,700.37. This represents a 1.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.13% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of GPC. United Asset Strategies Inc. increased its holdings in Genuine Parts by 1.6% in the 4th quarter. United Asset Strategies Inc. now owns 4,492 shares of the specialty retailer's stock worth $552,000 after buying an additional 72 shares in the last quarter. J2 Capital Management Inc boosted its holdings in shares of Genuine Parts by 1.9% during the 4th quarter. J2 Capital Management Inc now owns 4,136 shares of the specialty retailer's stock valued at $509,000 after acquiring an additional 79 shares during the last quarter. Capital Investment Advisors LLC boosted its holdings in shares of Genuine Parts by 0.6% during the 4th quarter. Capital Investment Advisors LLC now owns 14,173 shares of the specialty retailer's stock valued at $1,743,000 after acquiring an additional 83 shares during the last quarter. IHT Wealth Management LLC grew its stake in shares of Genuine Parts by 1.8% in the fourth quarter. IHT Wealth Management LLC now owns 4,644 shares of the specialty retailer's stock worth $571,000 after acquiring an additional 83 shares during the period. Finally, Matrix Trust Co grew its stake in shares of Genuine Parts by 27.6% in the fourth quarter. Matrix Trust Co now owns 393 shares of the specialty retailer's stock worth $48,000 after acquiring an additional 85 shares during the period. 78.83% of the stock is owned by institutional investors.

Genuine Parts Company Profile

Genuine Parts Company NYSE: GPC is a global distributor of automotive replacement parts, industrial parts and business products with a history dating back to 1928. Headquartered in Atlanta, Georgia, the company operates a broad distribution network and retail presence serving repair shops, independent retailers, industrial customers and commercial accounts. Its business model centers on stocking and delivering a wide range of parts and supplies to support aftermarket and maintenance needs across multiple end markets.

Genuine Parts conducts its operations through several well-known operating groups and subsidiaries.

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