Genuine Parts Company (NYSE:GPC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Friday.
According to Zacks, “Genuine Parts has underperformed the industry it belongs to in the last six months. In third quarter of 2017, the company reported adjusted earnings of $1.16 per share, which missed the Zacks Consensus Estimate of $1.28. The company is expected to face a short-term liquidity crisis at the time of declining sales, as most of the current asset is locked in its merchandised inventory. Also, a continuous rise in selling, administrative & other expenses will create a further pressure on the financials of the company. However, The company has been undertaking various initiatives to boost sales and earnings, such as product line expansion, penetration into new markets, cost-saving activities, share repurchases and acquisitions.”
GPC has been the subject of several other reports. Gabelli reissued a “buy” rating on shares of Genuine Parts in a research note on Friday. Jefferies Group LLC reissued a “hold” rating and issued a $95.00 target price on shares of Genuine Parts in a research note on Sunday, September 10th. BidaskClub cut shares of Genuine Parts from a “sell” rating to a “strong sell” rating in a research note on Monday, July 24th. Goldman Sachs Group, Inc. (The) cut shares of Genuine Parts from a “neutral” rating to a “sell” rating and decreased their target price for the company from $104.00 to $89.00 in a research note on Thursday, July 6th. Finally, Royal Bank Of Canada raised their target price on shares of Genuine Parts from $85.00 to $98.00 and gave the company a “sector perform” rating in a research note on Tuesday, September 26th. Three analysts have rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average price target of $96.00.
Genuine Parts (NYSE GPC) traded down 1.20% during mid-day trading on Friday, reaching $88.63. 1,601,168 shares of the company’s stock traded hands. The firm has a 50-day moving average price of $91.09 and a 200-day moving average price of $89.20. The stock has a market cap of $13.01 billion, a P/E ratio of 19.19 and a beta of 1.10. Genuine Parts has a 1-year low of $79.86 and a 1-year high of $100.90.
Genuine Parts (NYSE:GPC) last released its earnings results on Thursday, October 19th. The specialty retailer reported $1.16 earnings per share for the quarter, missing the consensus estimate of $1.28 by ($0.12). Genuine Parts had a net margin of 4.16% and a return on equity of 20.72%. The firm had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $4.10 billion. During the same period in the prior year, the business posted $1.24 earnings per share. Genuine Parts’s quarterly revenue was down 72.2% compared to the same quarter last year. Equities research analysts anticipate that Genuine Parts will post $4.71 EPS for the current fiscal year.
Genuine Parts declared that its board has approved a share buyback program on Monday, August 21st that authorizes the company to buyback 15,000,000 shares. This buyback authorization authorizes the specialty retailer to purchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.
A number of hedge funds have recently added to or reduced their stakes in GPC. OppenheimerFunds Inc. boosted its position in Genuine Parts by 14.5% during the first quarter. OppenheimerFunds Inc. now owns 20,026 shares of the specialty retailer’s stock worth $1,851,000 after purchasing an additional 2,537 shares during the period. FMR LLC boosted its position in Genuine Parts by 86.0% during the first quarter. FMR LLC now owns 160,973 shares of the specialty retailer’s stock worth $14,875,000 after purchasing an additional 74,448 shares during the period. WINTON GROUP Ltd boosted its position in Genuine Parts by 116.7% during the first quarter. WINTON GROUP Ltd now owns 415,900 shares of the specialty retailer’s stock worth $41,777,000 after purchasing an additional 224,017 shares during the period. Laurion Capital Management LP boosted its position in Genuine Parts by 15.9% during the first quarter. Laurion Capital Management LP now owns 7,300 shares of the specialty retailer’s stock worth $675,000 after purchasing an additional 1,000 shares during the period. Finally, Good Life Advisors LLC boosted its position in Genuine Parts by 6.2% during the first quarter. Good Life Advisors LLC now owns 6,756 shares of the specialty retailer’s stock worth $613,000 after purchasing an additional 393 shares during the period. 74.41% of the stock is owned by hedge funds and other institutional investors.
Genuine Parts Company Profile
Genuine Parts Company is a service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. The Company’s segments include Automotive, Industrial, Office Products Group, Electrical/Electronic Materials and Other.
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