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

Key Points

• Analysts rate AAP a "Reduce": 22 firms cover the stock (3 sell, 17 hold, 2 buy) with an average 12‑month price target of $52.93, below the recent open near $56.76.
• Mixed quarter: AAP reported an EPS beat ($0.86 vs. $0.41) and slight revenue beat but revenue was down 1.2% year‑over‑year; the company set FY2026 guidance of $2.40–$3.10 EPS while sell‑side analysts expect -$0.46 EPS for the current fiscal year.
• Dividend and payout risk: Management announced a $0.25 quarterly dividend ($1.00 annualized, ~1.8% yield) but the payout ratio is very high at 136.99%, suggesting limited sustainability.

Shares of Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) have been given an average rating of "Reduce" by the twenty-two ratings firms that are presently covering the company, MarketBeat Ratings reports. Three research analysts have rated the stock with a sell rating, seventeen have given a hold rating and two have issued a buy rating on the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $52.9311.

A number of equities research analysts have recently issued reports on the stock. UBS Group reissued a "neutral" rating on shares of Advance Auto Parts in a research note on Monday, February 9th. Weiss Ratings reissued a "sell (d)" rating on shares of Advance Auto Parts in a research note on Wednesday, January 21st. BMO Capital Markets boosted their price target on shares of Advance Auto Parts from $55.00 to $60.00 and gave the company a "market perform" rating in a research note on Tuesday, February 17th. Morgan Stanley set a $60.00 price target on shares of Advance Auto Parts in a research note on Tuesday, February 17th. Finally, DA Davidson set a $58.00 price target on shares of Advance Auto Parts in a research note on Tuesday, February 17th.

Advance Auto Parts Stock Performance

AAP opened at $56.76 on Thursday. The firm has a market capitalization of $3.42 billion, a PE ratio of 77.75, a PEG ratio of 0.75 and a beta of 1.04. Advance Auto Parts has a twelve month low of $30.48 and a twelve month high of $70.00. The firm's 50-day moving average price is $53.44 and its 200 day moving average price is $50.46. The company has a current ratio of 1.75, a quick ratio of 0.87 and a debt-to-equity ratio of 1.55.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its quarterly earnings results on Friday, February 13th. The company reported $0.86 earnings per share for the quarter, topping analysts' consensus estimates of $0.41 by $0.45. The firm had revenue of $1.97 billion for the quarter, compared to analyst estimates of $1.95 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. Advance Auto Parts's quarterly revenue was down 1.2% on a year-over-year basis. During the same period in the previous year, the business posted ($10.16) earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. As a group, sell-side analysts expect that Advance Auto Parts will post -0.46 EPS for the current fiscal year.

Advance Auto Parts Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Friday, April 10th. Advance Auto Parts's dividend payout ratio is presently 136.99%.

Institutional Investors Weigh In On Advance Auto Parts

A number of large investors have recently modified their holdings of the company. Price T Rowe Associates Inc. MD lifted its position 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 valued at $293,751,000 after acquiring an additional 1,190,094 shares during the last quarter. Federated Hermes Inc. lifted its position in Advance Auto Parts by 4.4% in the fourth quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company's stock valued at $110,499,000 after acquiring an additional 117,648 shares during the last quarter. State Street Corp lifted its position in Advance Auto Parts by 3.9% in the fourth quarter. State Street Corp now owns 2,499,981 shares of the company's stock valued at $98,249,000 after acquiring an additional 92,861 shares during the last quarter. American Century Companies Inc. boosted its stake in Advance Auto Parts by 559.0% during the 3rd quarter. American Century Companies Inc. now owns 1,519,591 shares of the company's stock worth $93,303,000 after purchasing an additional 1,288,986 shares during the period. Finally, Royce & Associates LP boosted its stake in Advance Auto Parts by 30.5% during the 4th quarter. Royce & Associates LP now owns 1,478,633 shares of the company's stock worth $58,110,000 after purchasing an additional 345,217 shares during the period. 88.70% of the stock is owned by hedge funds and other institutional investors.

About Advance Auto Parts

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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