Zacks Investment Research Lowers Genuine Parts (GPC) to Sell

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Genuine Parts (NYSE:GPC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday, Zacks.com reports. They currently have a $104.00 price target on the specialty retailer’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 5.49% from the company’s current price.

According to Zacks, “Genuine Parts is set to acquire the full ownership of Australia-based Inneco Group, the leading industrial distributors of bearings, power transmission and seals. Acquiring the remaining 65% stake will drive the company’s industrial portfolio and grow presence in Australasia. This is in sync with its strategy of acquiring businesses to strengthen global platform and generate steady net sales growth. Further, strong balance sheet supports Genuine Parts to reward shareholders through share repurchases and quarterly dividends. However, softer economic environment in Europe along with mild winter weather is a concern. Also, high long-term debt, continuous rise in SG&A expenses and fluctuating foreign currency are headwinds for the company.”

Other analysts have also issued reports about the company. ValuEngine upgraded Genuine Parts from a “hold” rating to a “buy” rating in a report on Tuesday, February 19th. Evercore ISI initiated coverage on Genuine Parts in a report on Wednesday, March 20th. They set an “in-line” rating and a $110.00 price target on the stock. One investment analyst has rated the stock with a sell rating and five have issued a hold rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $103.60.

Genuine Parts stock traded up $0.35 during mid-day trading on Monday, reaching $98.59. 399,521 shares of the company’s stock were exchanged, compared to its average volume of 931,814. The firm has a market capitalization of $14.40 billion, a P/E ratio of 17.36, a price-to-earnings-growth ratio of 3.22 and a beta of 0.97. Genuine Parts has a one year low of $89.87 and a one year high of $115.20. The company has a current ratio of 1.20, a quick ratio of 0.64 and a debt-to-equity ratio of 0.67.

Genuine Parts (NYSE:GPC) last issued its quarterly earnings results on Thursday, April 18th. The specialty retailer reported $1.28 EPS for the quarter, missing the Zacks’ consensus estimate of $1.31 by ($0.03). The business had revenue of $4.74 billion for the quarter, compared to the consensus estimate of $4.79 billion. Genuine Parts had a return on equity of 23.46% and a net margin of 4.20%. The business’s revenue was up 3.3% compared to the same quarter last year. During the same quarter last year, the business posted $1.27 earnings per share. Analysts predict that Genuine Parts will post 5.9 EPS for the current fiscal year.

In other news, insider Scott Sonnemaker bought 5,000 shares of the stock in a transaction on Tuesday, May 7th. The shares were purchased at an average cost of $99.01 per share, for a total transaction of $495,050.00. Following the completion of the purchase, the insider now directly owns 5,000 shares in the company, valued at approximately $495,050. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 4.50% of the company’s stock.

Institutional investors and hedge funds have recently modified their holdings of the business. Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Genuine Parts in the fourth quarter valued at $2,823,000. Nicholas Company Inc. grew its position in shares of Genuine Parts by 2.9% in the fourth quarter. Nicholas Company Inc. now owns 37,590 shares of the specialty retailer’s stock valued at $3,609,000 after purchasing an additional 1,060 shares in the last quarter. Farmers National Bank purchased a new position in shares of Genuine Parts in the first quarter valued at $324,000. Independent Advisor Alliance grew its position in shares of Genuine Parts by 7.3% in the first quarter. Independent Advisor Alliance now owns 23,001 shares of the specialty retailer’s stock valued at $2,577,000 after purchasing an additional 1,562 shares in the last quarter. Finally, Legal & General Group Plc grew its position in shares of Genuine Parts by 12.5% in the fourth quarter. Legal & General Group Plc now owns 877,249 shares of the specialty retailer’s stock valued at $84,222,000 after purchasing an additional 97,768 shares in the last quarter. Hedge funds and other institutional investors own 76.49% of the company’s stock.

About Genuine Parts

Genuine Parts Company distributes automotive replacement, industrial parts and materials, and business products in North America, Australia, New Zealand, the United Kingdom, France, Germany, Poland, and Puerto Rico. The company distributes automotive replacement parts for imported vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, and heavy duty equipment; and accessory items for automotive aftermarket, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns, and individuals.

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