John Holder, a director at Genuine Parts Company (GPC) recently picked up 2,200 shares. The buy increased his total holdings by over 20 percent, and cost the director just over $201,000.
This is the second insider buy at the company this year, also from a director back in March. Insiders have been both buyers and sellers of shares over the past few years. Insiders own nearly 3 percent of the company.
Genuine Parts Company distributes automotive and industrial parts and materials worldwide, with a focus on automotive parts. While shares are considerably off their March lows, shares are still down 12 percent over the past year.
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Forget Tesla. It's the company that's been supplying this key piece of tech to Elon Musk that will shock everyone.
This is all part of a $30 trillion megatrend.
And I'm not talking about blockchain, artificial intelligence, 5G, robotics, or the Internet of Things.
This trend is BIGGER than all of those things COMBINED!
And if Elon Musk mentions this company in a tweet, there's no telling how high shares could go.
The company is coming off some poor quarters where it barely eked out a profit, but now shares trade for 18 times forward earnings, and less than one times price to sales.
Action to take: Investors may like shares here, with their generous 3.5 percent dividend yield. Automotive parts have seen a strong demand in the past few months, and that trend is likely to continue pushing shares higher.
Traders may do better betting on a continued upside in shares. The February 2021 $95 calls have a bid/ask spread around $4.40, and could deliver mid-to-high double-digit returns if shares continue trending back to their 52-week high.