Zacks Investment Research Downgrades Genuine Parts (GPC) to Hold
Genuine Parts (NYSE:GPC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
According to Zacks, “Genuine Parts’ adjusted earnings per share and revenues beat the Zacks Consensus Estimate in fourth-quarter 2017. Compared to the year-ago figures, both earnings per share and revenues were higher. The company frequently resorts to acquisitions for expanding its business. Also, it has been undertaking various initiatives to boost sales and earnings such as product-line expansion, penetration into new markets and cost-saving activities. The company has also provided a positive outlook for 2018. However, rising SG&A expenses, increase in long-term debt and a high proportion of inventory in current assets are few concerns for the company. Also, over a month, shares of Genuine Parts' have underperformed in the industry it belongs to.”
A number of other equities analysts have also commented on the company. Royal Bank of Canada dropped their price objective on Genuine Parts to $100.00 and set a “market perform” rating on the stock in a research note on Wednesday, February 21st. Bank of America dropped their price objective on Genuine Parts from $90.00 to $80.00 and set an “underperform” rating on the stock in a research note on Wednesday, February 21st. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $107.00 price objective (down from $114.00) on shares of Genuine Parts in a research note on Wednesday, February 21st. Finally, Moffett Nathanson began coverage on Genuine Parts in a research report on Monday, December 4th. They set a “sell” rating on the stock. Four investment analysts have rated the stock with a sell rating, five have issued a hold rating and one has given a buy rating to the stock. Genuine Parts currently has an average rating of “Hold” and a consensus price target of $97.71.
Genuine Parts (NYSE:GPC) last posted its quarterly earnings data on Tuesday, February 20th. The specialty retailer reported $1.12 EPS for the quarter, topping analysts’ consensus estimates of $1.11 by $0.01. The business had revenue of $4.21 billion for the quarter, compared to analyst estimates of $4.05 billion. Genuine Parts had a return on equity of 20.48% and a net margin of 3.78%. The firm’s revenue for the quarter was up 11.3% on a year-over-year basis. During the same period in the previous year, the company posted $1.02 earnings per share. research analysts predict that Genuine Parts will post 5.72 EPS for the current fiscal year.
Hedge funds have recently added to or reduced their stakes in the stock. Trustcore Financial Services LLC acquired a new stake in Genuine Parts during the fourth quarter worth about $107,000. Captrust Financial Advisors acquired a new stake in Genuine Parts during the fourth quarter worth about $109,000. Valeo Financial Advisors LLC grew its position in Genuine Parts by 1,061.0% during the fourth quarter. Valeo Financial Advisors LLC now owns 1,161 shares of the specialty retailer’s stock worth $110,000 after buying an additional 1,061 shares in the last quarter. Wagner Wealth Management LLC acquired a new stake in Genuine Parts during the fourth quarter worth about $117,000. Finally, Horan Capital Advisors LLC. acquired a new stake in Genuine Parts during the third quarter valued at approximately $134,000. 75.31% of the stock is currently owned by institutional investors and hedge funds.
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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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