On April 1, 2025, Goldman Sachs downgraded Genuine Parts Company from Neutral to Sell and slashed its price target from $133 to $114. The downgrade comes as warning signs mount across multiple segments of $GPC’s business, notably its core NAPA division and European Automotive operations.
Goldman analysts flagged underperformance in the NAPA unit, a slowdown in Europe, and exposure in the Industrial segment as significant concerns, especially in the face of an uncertain macroeconomic backdrop. While $GPC’s 2025 outlook leans on stronger second-half performance, Goldman is skeptical about a meaningful rebound in market demand to support that thesis.
➤ The downgrade positions $GPC unfavorably against better-performing peers like AutoZone and O’Reilly.
➤ Goldman’s revised stance suggests limited upside potential and questions the reliability of the company’s H2 expectations.
Despite the negative sentiment, one aspect of $GPC’s story remains rock solid: its dividends.
Dividend Fundamentals:
✔️ $GPC has paid a dividend every year since 1948 and has raised it annually for the past 69 years — a remarkable feat in shareholder reliability.
✔️ Recent dividend payments have consistently been $1.00 per share per quarter, totaling $4.00 annually.
✔️ The forward dividend yield stands at 3.33%, with a payout ratio of 43.7%, signaling a healthy balance between investor returns and internal reinvestment.
✔️ Dividends are distributed quarterly, with the most recent payment made on April 1, 2025.
So while operational pressures have dimmed the outlook in the short term, long-term dividend investors may still find comfort in $GPC’s decades-long track record of steady, reliable income.