Genuine Parts (NYSE:GPC) Stock Price Down 4.3% - Should You Sell?

Key Points

• Genuine Parts shares fell 4.3% to about $124.56 despite third-quarter revenue of $6.52 billion, up 4.2% year over year and slightly above estimates, and adjusted EPS of $2.07, ahead of the $2.04 consensus.
• Investors were concerned about automotive margin pressure and the company narrowing its 2026 adjusted EPS guidance to $7.50–$7.75 from $7.50–$8.00.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $146; the company also offers a $4.25 annualized dividend, yielding about 3.4%.

Genuine Parts Company (NYSE:GPC - Get Free Report)'s share price traded down 4.3% during mid-day trading on Tuesday. The stock traded as low as $124.68 and last traded at $124.5640. 1,064,149 shares were traded during mid-day trading, a decline of 31% from the average session volume of 1,552,868 shares. The stock had previously closed at $130.18.

Genuine Parts News Summary

Here are the key news stories impacting Genuine Parts this week:

• Positive Sentiment: Third-quarter revenue rose 4.2% year over year to $6.52 billion, slightly above the approximately $6.49 billion consensus estimate. Industrial-sector growth accelerated, providing support for the company’s top-line performance. Genuine Parts Company Reports Third Quarter 2026 Results
• Positive Sentiment: Adjusted earnings were $2.07 per share, up from $1.98 a year earlier and above some analyst estimates near $2.04. The results indicate year-over-year earnings growth despite operating challenges. Genuine Parts Q3 Adjusted EPS
• Neutral Sentiment: Management highlighted continued execution across its automotive and industrial replacement-parts businesses during the earnings call, while investors focused on segment-level margins and the implications for the remainder of 2026. Genuine Parts Company Q3 2026 Earnings Call Transcript
• Negative Sentiment: Automotive margin pressure contributed to an earnings shortfall versus the stricter Zacks consensus estimate of $2.09 per share. This raised concerns about the company’s ability to convert sales growth into stronger profits. GPC Q3 Earnings Miss Estimates on Automotive Margin Pressure
• Negative Sentiment: GPC narrowed its 2026 adjusted EPS outlook to $7.50–$7.75 from $7.50–$8.00, removing the upper end of its prior forecast. The guidance reduction was the clearest negative catalyst and likely outweighed the revenue beat. Genuine Parts Q3 Earnings and Outlook

Analysts Set New Price Targets

A number of research firms have commented on GPC. JPMorgan Chase & Co. raised their target price on shares of Genuine Parts from $125.00 to $137.00 and gave the company an "overweight" rating in a research report on Monday, October 12th. Weiss Ratings restated a "hold (c-)" rating on shares of Genuine Parts in a research note on Monday, September 21st. Raymond James Financial reissued a "strong-buy" rating and issued a $165.00 price objective on shares of Genuine Parts in a research report on Wednesday, July 22nd. UBS Group restated a "neutral" rating and set a $122.00 target price on shares of Genuine Parts in a research note on Wednesday, July 22nd. Finally, DA Davidson upped their target price on Genuine Parts from $150.00 to $170.00 and gave the company a "buy" rating in a research report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $146.00.

Genuine Parts Price Performance

The stock has a market cap of $17.14 billion, a price-to-earnings ratio of 497.30, a price-to-earnings-growth ratio of 2.48 and a beta of 0.67. The stock's 50 day moving average price is $132.11 and its two-hundred day moving average price is $118.68. The company has a quick ratio of 0.50, a current ratio of 1.16 and a debt-to-equity ratio of 0.88.

Genuine Parts (NYSE:GPC - Get Free Report) last posted its earnings results on Tuesday, October 20th. The specialty retailer reported $2.07 EPS for the quarter, topping the consensus estimate of $2.04 by $0.03. Genuine Parts had a return on equity of 22.59% and a net margin of 0.13%. The firm had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.49 billion. During the same period last year, the company earned $1.98 earnings per share. Genuine Parts's revenue for the quarter was up 4.2% compared to the same quarter last year. Equities research analysts forecast that Genuine Parts Company will post 7.73 EPS for the current fiscal year.

Genuine Parts Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 2nd. Stockholders of record on Friday, September 4th were issued a dividend of $1.0625 per share. This represents a $4.25 annualized dividend and a dividend yield of 3.4%. The ex-dividend date of this dividend was Friday, September 4th. Genuine Parts's payout ratio is 1,700.00%.

Institutional Trading of Genuine Parts

A number of hedge funds have recently added to or reduced their stakes in GPC. Fjarde AP Fonden Fourth Swedish National Pension Fund raised its holdings in Genuine Parts by 85.0% in the 1st quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 30,262 shares of the specialty retailer's stock valued at $3,200,000 after buying an additional 13,900 shares during the period. Paradiem LLC acquired a new position in Genuine Parts in the first quarter valued at about $3,154,000. Montag A & Associates Inc. boosted its stake in Genuine Parts by 19.6% during the first quarter. Montag A & Associates Inc. now owns 64,855 shares of the specialty retailer's stock worth $6,923,000 after buying an additional 10,622 shares during the period. Hsbc Holdings PLC boosted its stake in Genuine Parts by 19.5% during the fourth quarter. Hsbc Holdings PLC now owns 477,970 shares of the specialty retailer's stock worth $58,887,000 after buying an additional 77,936 shares during the period. Finally, Bastion Asset Management Inc. acquired a new stake in shares of Genuine Parts during the first quarter valued at about $16,978,000. 78.83% of the stock is owned by hedge funds and other institutional investors.

Genuine Parts Company Profile

Genuine Parts Company NYSE: GPC is a distributor of automotive and industrial replacement parts. Its Automotive Parts Group supplies components and accessories for cars, trucks and other vehicles, serving professional repair shops, commercial customers and do-it-yourself consumers through distribution networks, stores and digital channels.

The company's Industrial Parts Group distributes products used to maintain and repair manufacturing, commercial and other industrial equipment. Its offerings include bearings, power-transmission components, motion-control products, industrial supplies and related maintenance, repair and operations products.

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