Genuine Parts (GPC) Downgraded by Zacks Investment Research 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 report issued on Wednesday, Zacks.com reports.

According to Zacks, “In first-quarter 2019, Genuine Parts’ earnings and net sales missed the respective Zacks Consensus Estimate. The figures were higher than the year-ago quarter. The decline is partly due to softer economic environment in Europe, along with mild winter weather. Further,high long-term debt, continuous rise in SG&A expenses and fluctuating foreign currency are headwinds for the company. However, Genuine Parts acquisitions to strengthen global platform are generating steady net sales growth. In the last quarter, it acquired two businesses to support growth of automotive parts and industrial products businesses. Apart from North America and Europe, Genuine Parts is also witnessing steady growth in the Asia-Pacific region.”

GPC has been the topic of a number of other research reports. ValuEngine downgraded Genuine Parts from a “buy” rating to a “hold” rating in a report on Friday, April 19th. Bank of America upgraded Genuine Parts from an “underperform” rating to a “neutral” rating in a research note on Wednesday, January 9th. Evercore ISI assumed coverage on Genuine Parts in a research note on Wednesday, March 20th. They issued an “in-line” rating and a $110.00 target price for the company. Finally, Wedbush restated a “neutral” rating on shares of Genuine Parts in a research note on Tuesday, January 15th. One analyst has rated the stock with a sell rating and five have given a hold rating to the stock. The company presently has a consensus rating of “Hold” and a consensus target price of $103.60.

Shares of GPC opened at $104.76 on Wednesday. The stock has a market capitalization of $15.39 billion, a PE ratio of 18.44, a price-to-earnings-growth ratio of 3.42 and a beta of 1.04. Genuine Parts has a fifty-two week low of $87.35 and a fifty-two week high of $115.20. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.67 and a current ratio of 1.20.

Genuine Parts (NYSE:GPC) last issued its earnings results on Thursday, April 18th. The specialty retailer reported $1.28 earnings per share for the quarter, missing analysts’ consensus estimates of $1.31 by ($0.03). The business had revenue of $4.74 billion during the quarter, compared to analyst estimates of $4.79 billion. Genuine Parts had a net margin of 4.20% and a return on equity of 23.46%. Genuine Parts’s revenue for the quarter was up 3.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.27 EPS. On average, sell-side analysts expect that Genuine Parts will post 5.94 EPS for the current fiscal year.

A number of institutional investors have recently added to or reduced their stakes in GPC. FMR LLC raised its stake in Genuine Parts by 1.0% during the third quarter. FMR LLC now owns 177,661 shares of the specialty retailer’s stock worth $17,659,000 after acquiring an additional 1,825 shares in the last quarter. Renaissance Technologies LLC raised its stake in Genuine Parts by 52.7% during the third quarter. Renaissance Technologies LLC now owns 178,800 shares of the specialty retailer’s stock worth $17,773,000 after acquiring an additional 61,700 shares in the last quarter. Pacer Advisors Inc. raised its stake in Genuine Parts by 31.0% during the third quarter. Pacer Advisors Inc. now owns 8,796 shares of the specialty retailer’s stock worth $874,000 after acquiring an additional 2,080 shares in the last quarter. Kentucky Retirement Systems acquired a new position in Genuine Parts during the third quarter worth $1,060,000. Finally, Neuberger Berman Group LLC raised its stake in Genuine Parts by 37.0% during the third quarter. Neuberger Berman Group LLC now owns 19,498 shares of the specialty retailer’s stock worth $1,938,000 after acquiring an additional 5,270 shares in the last quarter. Hedge funds and other institutional investors own 76.12% 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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