Potential Genuine Parts Company (NYSE:GPC) shareholders may wish to note that the Director, Thomas Gallagher, recently bought US$276k worth of stock, paying US$55.23 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 0.8%.
The Last 12 Months Of Insider Transactions At Genuine Parts
In the last twelve months, the biggest single purchase by an insider was when Group President of North American Automotive Scott Sonnemaker bought US$495k worth of shares at a price of US$99.01 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$60.81). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 10.00k shares worth US$771k. But they sold 1000 shares for US$107k. In the last twelve months there was more buying than selling by Genuine Parts insiders. Their average price was about US$77.12. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Genuine Parts
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.6% of Genuine Parts shares, worth about US$54m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Genuine Parts Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Genuine Parts we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Genuine Parts you should know about.
Of course Genuine Parts may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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