Monday, November 3, 2014

Why Are Insiders Buying Advance Auto Parts Stock?

It's always useful to keep an eye on insiders buying stock in their own companies. It's particularly intriguing when management is doing it while integrating a major acquisition. With that in mind, Fools should keep a close look out for stock in auto parts retailer Advance Auto Parts (NYSE: AAP  ) .

Earlier this year, the company completed the purchase of General Parts International -- owner of Carquest and Worldpac stores -- for just more than $2 billion. If the insider buying is a good tell, then the integration plan is working out just fine. It's time to take a closer look.

What the deal means for Advance Auto Parts
The market certainly likes the deal, because Advance Auto has noticeably outperformed its peers Autozone (NYSE: AZO  ) , Genuine Parts Company (NYSE: GPC  ) , and O'Reilly Automotive (NASDAQ: ORLY  ) in the year since it was announced.


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