Advance Auto Parts, Inc. (NYSE:AAP) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts maintain a cautious outlook: Advance Auto Parts has a consensus “Hold” rating from 20 analysts, including 17 holds, two buys, and one sell. The average 12-month price target is approximately $58.91.
• Quarterly results exceeded expectations: The company reported adjusted EPS of $0.77 versus the $0.39 consensus estimate, while revenue reached $2.61 billion, up 1.2% year over year and above expectations.
• Institutional ownership is substantial: Hedge funds and other institutional investors own 88.7% of Advance Auto Parts, with major investors including BlackRock, T. Rowe Price, and Pzena Investment Management.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) has been assigned an average recommendation of "Hold" from the twenty research firms that are presently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, seventeen have given a hold rating and two have assigned a buy rating to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $58.9075.

A number of research analysts have weighed in on the company. UBS Group upped their target price on Advance Auto Parts from $60.00 to $65.00 and gave the stock a "neutral" rating in a report on Friday, May 22nd. TD Cowen restated a "hold" rating on shares of Advance Auto Parts in a research note on Friday, May 22nd. BMO Capital Markets lifted their price target on Advance Auto Parts from $60.00 to $65.00 and gave the company a "market perform" rating in a research report on Friday, May 22nd. Wells Fargo & Company upped their price target on Advance Auto Parts from $50.00 to $60.00 and gave the stock an "equal weight" rating in a research note on Friday, May 22nd. Finally, Morgan Stanley increased their price objective on Advance Auto Parts from $60.00 to $65.00 and gave the stock an "equal weight" rating in a report on Friday, May 22nd.

Advance Auto Parts Trading Up 0.9%

Shares of AAP opened at $57.25 on Wednesday. Advance Auto Parts has a 1-year low of $37.89 and a 1-year high of $65.21. The company has a current ratio of 1.78, a quick ratio of 0.85 and a debt-to-equity ratio of 1.54. The firm's 50-day moving average price is $57.37 and its 200-day moving average price is $55.42. The firm has a market capitalization of $3.46 billion, a price-to-earnings ratio of 79.52, a PEG ratio of 0.93 and a beta of 1.03.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $0.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.39 by $0.38. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The company had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.05 billion. During the same period in the prior year, the firm earned $0.40 earnings per share. Advance Auto Parts's revenue was up 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. Sell-side analysts anticipate that Advance Auto Parts will post 2.94 EPS for the current year.

Institutional Trading of Advance Auto Parts

A number of hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in Advance Auto Parts during the 2nd quarter valued at about $581,909,000. Price T Rowe Associates Inc. MD grew its holdings in Advance Auto Parts by 18.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company's stock worth $293,751,000 after purchasing an additional 1,190,094 shares during the period. Pzena Investment Management LLC purchased a new position in shares of Advance Auto Parts during the second quarter valued at approximately $273,115,000. Federated Hermes Inc. lifted its holdings in shares of Advance Auto Parts by 4.4% during the fourth quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company's stock valued at $110,499,000 after purchasing an additional 117,648 shares during the last quarter. Finally, State Street Corp boosted its position in shares of Advance Auto Parts by 3.9% in the 4th quarter. State Street Corp now owns 2,499,981 shares of the company's stock worth $98,249,000 after purchasing an additional 92,861 shares in the last quarter. 88.70% of the stock is owned by hedge funds and other institutional investors.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc NYSE: AAP is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company's product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.

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