Genuine Parts Company's stock plummeted 5.02% during intraday trading on Wednesday following a key analyst rating downgrade.

The sharp decline came after Truist Securities cut its rating on the automotive and industrial parts distributor to "Hold" from "Buy" and significantly reduced its price target to $127 from $162. The brokerage cited soft performance in the company's auto business, which has been impacted by higher interest rates needed to fund inventory and continued expense inflation.

Truist noted that while the company's plan to separate its auto and industrial segments is positive, management and process changes have been ongoing for nearly two years with performance remaining soft, suggesting continued market share losses. The news of Brightpick entering the automotive market through a strategic partnership with Napa, a key Genuine Parts brand, may have added to investor concerns about competitive pressures.