Investors who take an interest in Genuine Parts Company (NYSE:GPC) should definitely note that the Independent Director, John Holder, recently paid US$91.72 per share to buy US$202k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 21%.

Check out our latest analysis for Genuine Parts

Genuine Parts Insider Transactions Over The Last Year

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. Even though the purchase was made at a significantly lower price than the recent price (US$89.69), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 7.20k shares worth US$478k. On the other hand they divested 1.00k shares, for US$107k. Overall, Genuine Parts insiders were net buyers during the last year. Their average price was about US$66.38. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Genuine Parts insiders own 0.6% of the company, worth about US$80m. 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 is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Genuine Parts insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 4 warning signs with Genuine Parts and understanding them should be part of your investment process.

But note: Genuine Parts may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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.

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