Genuine Parts (GPC) Stock Is Trending After Hours: Here's What You Should Know

Benzinga14:03

Genuine Parts Co. (NYSE:GPC) shares fell 1.09% to $131.13 in after-hours trading on Thursday, reversing a 12.9% intraday surge.

O’Reilly Bid Sparks the Rally

The stock move came as Bloomberg News reported on Thursday that O’Reilly Automotive Inc. (NASDAQ:ORLY) submitted a cash bid for GPC’s automotive parts unit, citing people familiar with the matter.

According to the report, the unit could be valued at $10 billion or more. A deal could be announced by the end of summer, though Genuine Parts may still keep the business or pursue a spinoff instead.

Genuine Parts and O’Reilly Automotive did not immediately respond to Benzinga‘s requests for comment.

What Investors Should Know

In February, Genuine Parts said it would separate its automotive and industrial businesses after pressure from Elliott Investment Management, which argued the stock undervalued both operations.

In its most recent quarter, Genuine Parts reported revenue of $6.26 billion, beating analyst estimates by 1.59%.

The Georgia-based automotive and industrial parts distributor is expected to report its second-quarter earnings on Jul. 21.

Trading Metrics, Technical Analysis

CompanyMarket Cap 52-Week RangeRelative Strength Index12-Month Change
Genuine Parts$18.24 billion$90.78 – $151.5783.20+4.05%
O’Reilly Automotive $74.79 billion$84.76 – $108.7251.57-1.18%

Benzinga’s Edge Stock Rankings indicate that GPC is experiencing long-term consolidation along with medium and short-term upward movement.

Photo Courtesy: IgorGolovniov on Shutterstock.com

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