We'd be surprised if Genuine Parts Company (NYSE:GPC) shareholders haven't noticed that an insider, Randall Breaux, recently sold US$107k worth of stock at US$107 per share. That sale was 31% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At Genuine Parts
Over the last year, we can see that the biggest insider purchase was by insider Scott Sonnemaker for US$495k worth of shares, at about US$99.01 per share. That implies that an insider found the current price of US$106 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 5500 shares worth US$545k. But they sold 1000 for US$107k. In total, Genuine Parts insiders bought more than they sold over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Genuine Parts is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Genuine Parts
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Genuine Parts insiders own about US$92m worth of shares. That equates to 0.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Genuine Parts Insiders?
An insider hasn't bought Genuine Parts stock in the last three months, but there was some selling. But we take heart from prior transactions. And insiders do own shares. So we're not overly bothered by recent selling. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at [email protected]. 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. Thank you for reading.