Genuine Parts (NYSE:GPC) Sees Large Volume Increase – Still a Buy?

Shares of Genuine Parts (NYSE:GPC) saw strong trading volume on Wednesday . 3,008,445 shares were traded during mid-day trading, an increase of 113% from the previous session’s volume of 1,415,184 shares.The stock last traded at $116.58 and had previously closed at $120.07.

Analyst Ratings Changes

GPC has been the topic of several research analyst reports. Loop Capital started coverage on shares of Genuine Parts in a research report on Thursday, January 16th. They issued a “buy” rating and a $155.00 price target on the stock. JPMorgan Chase & Co. lowered their price target on Genuine Parts from $162.00 to $135.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 22nd. Wedbush decreased their price target on shares of Genuine Parts from $145.00 to $120.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 23rd. Northcoast Research downgraded shares of Genuine Parts from a “buy” rating to a “neutral” rating in a report on Friday, January 17th. Finally, UBS Group lowered their target price on shares of Genuine Parts from $145.00 to $125.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 23rd. Eight research analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $141.50.

Genuine Parts Price Performance

The stock has a fifty day moving average of $120.21 and a two-hundred day moving average of $129.90. The company has a current ratio of 1.17, a quick ratio of 0.57 and a debt-to-equity ratio of 0.81. The stock has a market capitalization of $16.29 billion, a price-to-earnings ratio of 15.08 and a beta of 0.95.

Genuine Parts (NYSE:GPC) last released its quarterly earnings results on Tuesday, October 22nd. The specialty retailer reported $1.88 EPS for the quarter, missing the consensus estimate of $2.42 by ($0.54). Genuine Parts had a net margin of 4.67% and a return on equity of 27.23%. The company had revenue of $6 billion for the quarter, compared to the consensus estimate of $5.94 billion. During the same period last year, the company earned $2.49 earnings per share. Genuine Parts’s revenue for the quarter was up 3.0% compared to the same quarter last year. As a group, equities research analysts forecast that Genuine Parts will post 8.09 earnings per share for the current year.

Genuine Parts Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, January 2nd. Investors of record on Friday, December 6th were issued a $1.00 dividend. This represents a $4.00 annualized dividend and a yield of 3.41%. The ex-dividend date was Friday, December 6th. Genuine Parts’s dividend payout ratio is 51.48%.

Insiders Place Their Bets

In other Genuine Parts news, Director Wendy B. Needham sold 1,608 shares of the company’s stock in a transaction on Friday, December 13th. The shares were sold at an average price of $120.78, for a total transaction of $194,214.24. Following the completion of the sale, the director now owns 11,357 shares in the company, valued at approximately $1,371,698.46. The trade was a 12.40 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.37% of the company’s stock.

Institutional Trading of Genuine Parts

A number of hedge funds have recently modified their holdings of GPC. Ashton Thomas Securities LLC acquired a new stake in Genuine Parts in the third quarter worth $26,000. Capital Performance Advisors LLP acquired a new stake in Genuine Parts during the 3rd quarter worth $31,000. Concord Wealth Partners lifted its holdings in Genuine Parts by 79.3% during the third quarter. Concord Wealth Partners now owns 269 shares of the specialty retailer’s stock worth $38,000 after acquiring an additional 119 shares in the last quarter. Synergy Asset Management LLC bought a new stake in shares of Genuine Parts in the fourth quarter worth about $32,000. Finally, Catalyst Capital Advisors LLC acquired a new stake in shares of Genuine Parts during the third quarter worth about $44,000. 78.83% of the stock is currently owned by institutional investors and hedge funds.

About Genuine Parts

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.