Advance Auto Parts, Inc. (NYSE:AAP) Given Average Rating of "Reduce" by Brokerages

Key Points

• Advance Auto Parts has an average rating of "Reduce" based on reviews from 22 brokerages, with three analysts recommending a sell, eighteen holding, and one buy rating.
• The company's current 12-month price target among analysts is $52.51, with notable price target increases from Morgan Stanley and Wells Fargo.
• Advance Auto Parts announced a quarterly dividend of $0.25 to be paid on October 24th, representing an annualized yield of 1.8% despite a negative dividend payout ratio.

Shares of Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) have earned an average rating of "Reduce" from the twenty-two brokerages that are presently covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and one has issued a buy rating on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $52.51.

A number of research analysts recently issued reports on AAP shares. Morgan Stanley lifted their price target on shares of Advance Auto Parts from $55.00 to $60.00 and gave the company an "equal weight" rating in a research report on Friday, September 12th. Argus reiterated a "hold" rating and set a $60.52 price objective on shares of Advance Auto Parts in a research report on Friday, August 29th. Wolfe Research initiated coverage on shares of Advance Auto Parts in a research note on Thursday, September 18th. They issued a "peer perform" rating on the stock. Truist Financial cut their price objective on shares of Advance Auto Parts from $53.00 to $50.00 and set a "hold" rating on the stock in a research report on Monday. Finally, Wells Fargo & Company lifted their price objective on shares of Advance Auto Parts from $45.00 to $50.00 and gave the stock an "equal weight" rating in a research report on Friday, August 15th.

Advance Auto Parts Trading Up 1.4%

AAP opened at $56.14 on Thursday. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.27 and a quick ratio of 0.49. Advance Auto Parts has a fifty-two week low of $28.89 and a fifty-two week high of $70.00. The firm has a market capitalization of $3.37 billion, a PE ratio of -8.81 and a beta of 1.08. The company's 50-day moving average is $58.49 and its 200 day moving average is $50.42.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its earnings results on Thursday, July 24th. The company reported ($0.22) earnings per share for the quarter. The company had revenue of $2.58 billion for the quarter. Advance Auto Parts had a negative net margin of 4.37% and a negative return on equity of 1.97%. Advance Auto Parts has set its Q2 2025 guidance at EPS. As a group, research analysts predict that Advance Auto Parts will post -0.46 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Investors of record on Friday, October 10th will be paid a $0.25 dividend. The ex-dividend date is Friday, October 10th. This represents a $1.00 dividend on an annualized basis and a yield of 1.8%. Advance Auto Parts's dividend payout ratio (DPR) is -15.70%.

Institutional Trading of Advance Auto Parts

Institutional investors and hedge funds have recently bought and sold shares of the business. Pzena Investment Management LLC increased its holdings in shares of Advance Auto Parts by 31.8% during the 1st quarter. Pzena Investment Management LLC now owns 4,312,508 shares of the company's stock valued at $169,093,000 after purchasing an additional 1,041,611 shares in the last quarter. Federated Hermes Inc. grew its holdings in shares of Advance Auto Parts by 75.7% during the second quarter. Federated Hermes Inc. now owns 2,387,325 shares of the company's stock worth $110,987,000 after buying an additional 1,028,561 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Advance Auto Parts by 48.4% during the 2nd quarter. Geode Capital Management LLC now owns 1,416,636 shares of the company's stock valued at $65,867,000 after acquiring an additional 461,761 shares during the last quarter. Invenomic Capital Management LP boosted its position in shares of Advance Auto Parts by 281.2% during the 1st quarter. Invenomic Capital Management LP now owns 600,895 shares of the company's stock valued at $23,561,000 after acquiring an additional 443,251 shares during the last quarter. Finally, Jump Financial LLC acquired a new position in shares of Advance Auto Parts during the 1st quarter valued at about $15,882,000. 88.70% of the stock is currently owned by institutional investors and hedge funds.

About Advance Auto Parts

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts.

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