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The Independent Director of Genuine Parts Company (NYSE:GPC), John Holder, Just Bought 7.9% More Shares

Simply Wall St
·3 min read

Even if it's not a huge purchase, we think it was good to see that John Holder, the Independent Director of Genuine Parts Company (NYSE:GPC) recently shelled out US$97k to buy stock, at US$97.00 per share. Although the purchase is not a big one, increasing their shareholding by only 7.9%, it can be interpreted as a good sign.

View our latest analysis for Genuine Parts

The Last 12 Months Of Insider Transactions At Genuine Parts

In the last twelve months, the biggest single purchase by an insider was when insider Thomas Gallagher bought US$276k worth of shares at a price of US$55.23 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$99.36. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Genuine Parts insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$70.11. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

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. We usually like to see fairly high levels of insider ownership. Genuine Parts insiders own about US$85m worth of shares. That equates to 0.6% of the company. 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 Do The Genuine Parts Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Genuine Parts shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for Genuine Parts you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.