Genuine Parts (NYSE:GPC) Shares Gap Down - Should You Sell?

Key Points

• Genuine Parts shares gapped down ahead of Tuesday’s trading, opening at $114.99 after closing at $122.40 the prior day and last trading around $114.02.
• Recent analyst sentiment is mixed but leans cautious: several firms hold or cut price targets, while the current consensus rating is Moderate Buy with an average price target of $144.50.
• The company recently beat quarterly earnings and revenue estimates, posting $2.15 EPS on $6.54 billion in revenue, and it also pays a $4.25 annualized dividend for a 3.7% yield.

Genuine Parts Company (NYSE:GPC - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $122.40, but opened at $114.99. Genuine Parts shares last traded at $114.0150, with a volume of 663,474 shares.

Analyst Ratings Changes

A number of brokerages recently issued reports on GPC. Zacks Research upgraded Genuine Parts from a "strong sell" rating to a "hold" rating in a research report on Monday, May 25th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Genuine Parts in a research report on Wednesday, June 24th. Truist Financial reduced their target price on shares of Genuine Parts from $127.00 to $124.00 and set a "hold" rating on the stock in a research note on Wednesday, April 22nd. UBS Group reduced their target price on shares of Genuine Parts from $135.00 to $125.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 22nd. Finally, DA Davidson raised their target price on shares of Genuine Parts from $145.00 to $150.00 and gave the stock a "buy" rating in a report on Monday, July 6th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $144.50.

Genuine Parts Stock Performance

The company has a debt-to-equity ratio of 0.77, a current ratio of 1.09 and a quick ratio of 0.48. The firm has a fifty day moving average price of $108.58 and a two-hundred day moving average price of $115.55. The stock has a market capitalization of $15.78 billion, a PE ratio of 266.83 and a beta of 0.63.

Genuine Parts (NYSE:GPC - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The specialty retailer reported $2.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.10 by $0.05. The company had revenue of $6.54 billion during the quarter, compared to analysts' expectations of $6.43 billion. Genuine Parts had a return on equity of 22.28% and a net margin of 0.24%.Genuine Parts's revenue was up 6.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.10 EPS. Genuine Parts has set its FY 2026 guidance at 7.500-8.000 EPS. Research analysts expect that Genuine Parts Company will post 7.69 EPS for the current year.

Genuine Parts Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Friday, June 5th were paid a dividend of $1.0625 per share. This represents a $4.25 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend was Friday, June 5th. Genuine Parts's payout ratio is currently 988.37%.

Insider Activity

In other news, insider James F. Howe sold 415 shares of the company's stock in a transaction dated Tuesday, May 5th. The shares were 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 in the company, valued at approximately $2,669,700.37. This represents a 1.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.13% of the company's stock.

Institutional Investors Weigh In On Genuine Parts

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Olistico Wealth LLC purchased a new position in shares of Genuine Parts during the fourth quarter worth approximately $25,000. Strive Financial Group LLC bought a new stake in shares of Genuine Parts during the fourth quarter valued at approximately $25,000. WPG Advisers LLC boosted its holdings in shares of Genuine Parts by 213.0% in the fourth quarter. WPG Advisers LLC now owns 241 shares of the specialty retailer's stock valued at $30,000 after purchasing an additional 164 shares during the period. Motiv8 Investments LLC purchased a new stake in shares of Genuine Parts in the fourth quarter valued at approximately $31,000. Finally, Lodestone Wealth Management LLC bought a new position in Genuine Parts in the fourth quarter worth approximately $32,000. Institutional investors own 78.83% of the company's stock.

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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