Advance Auto Parts, Inc. (NYSE:AAP) Receives $48.53 Consensus Price Target from Brokerages

Key Points

• Advance Auto Parts has received a consensus rating of "Reduce" from 22 brokerages, with two sell ratings, 19 hold ratings, and one buy rating.
• The company's most recent earnings report showed a $0.22 EPS, beating estimates, but the quarterly revenue decreased by 24.2% year-over-year.
• A quarterly dividend of $0.25 was recently paid, reflecting an annual yield of 1.7%, despite the company's negative return on equity.

Shares of Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) have been given a consensus recommendation of "Reduce" by the twenty-two brokerages that are currently covering the firm, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and one has given a buy rating to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $49.8176.

Several analysts have commented on the stock. BMO Capital Markets reaffirmed a "market perform" rating and issued a $50.00 target price (up from $40.00) on shares of Advance Auto Parts in a research note on Friday, May 23rd. Bank of America boosted their price objective on shares of Advance Auto Parts from $33.00 to $39.00 and gave the company an "underperform" rating in a research note on Friday, May 23rd. Raymond James Financial boosted their price objective on shares of Advance Auto Parts to $49.17 and gave the company a "hold" rating in a research note on Monday, May 26th. Wall Street Zen cut shares of Advance Auto Parts from a "hold" rating to a "sell" rating in a research note on Sunday, June 29th. Finally, Mizuho upped their price target on shares of Advance Auto Parts from $38.00 to $44.00 and gave the stock a "neutral" rating in a research report on Thursday, July 3rd.

Insider Buying and Selling

In other Advance Auto Parts news, SVP Jason Hand sold 948 shares of the company's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $48.52, for a total value of $45,996.96. Following the completion of the transaction, the senior vice president owned 9,876 shares in the company, valued at approximately $479,183.52. This represents a 8.76% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 0.67% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in AAP. REAP Financial Group LLC bought a new stake in Advance Auto Parts during the second quarter worth approximately $26,000. Hexagon Capital Partners LLC lifted its position in shares of Advance Auto Parts by 189.0% in the 1st quarter. Hexagon Capital Partners LLC now owns 711 shares of the company's stock valued at $28,000 after acquiring an additional 465 shares in the last quarter. Parallel Advisors LLC lifted its position in shares of Advance Auto Parts by 355.8% in the 2nd quarter. Parallel Advisors LLC now owns 939 shares of the company's stock valued at $44,000 after acquiring an additional 733 shares in the last quarter. Advisory Services Network LLC purchased a new stake in shares of Advance Auto Parts in the 4th quarter valued at approximately $46,000. Finally, Financial Management Professionals Inc. purchased a new stake in Advance Auto Parts in the 1st quarter worth approximately $49,000. 88.75% of the stock is currently owned by institutional investors.

Advance Auto Parts Price Performance

Shares of Advance Auto Parts stock traded up $0.12 during trading on Friday, hitting $59.48. 816,464 shares of the company were exchanged, compared to its average volume of 2,672,146. The company has a quick ratio of 0.49, a current ratio of 1.27 and a debt-to-equity ratio of 0.68. Advance Auto Parts has a fifty-two week low of $28.89 and a fifty-two week high of $70.00. The stock has a market capitalization of $3.56 billion, a price-to-earnings ratio of -10.14 and a beta of 1.05. The firm has a 50 day moving average price of $54.62 and a 200 day moving average price of $44.36.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its earnings results on Thursday, May 22nd. The company reported ($0.22) EPS for the quarter, topping the consensus estimate of ($0.81) by $0.59. The firm had revenue of $2.58 billion during the quarter, compared to analysts' expectations of $2.51 billion. Advance Auto Parts had a negative net margin of 3.74% and a negative return on equity of 1.76%. Advance Auto Parts's revenue for the quarter was down 24.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.67 EPS. On average, equities analysts expect that Advance Auto Parts will post -0.46 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 25th. Shareholders of record on Friday, July 11th were given a $0.25 dividend. The ex-dividend date was Friday, July 11th. This represents a $1.00 annualized dividend and a yield of 1.7%. Advance Auto Parts's dividend payout ratio is -17.04%.

Advance Auto Parts Company Profile

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.