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

Key Points

• Advance Auto Parts (NYSE:AAP) has received a consensus recommendation of "Reduce" from 21 analysts, with two sell ratings, 18 holds, and one buy recommendation.
• The stock's average 12-month target price among brokers is $51.78, with analysts making varying adjustments to target prices in recent months.
• Advance Auto Parts recently declared a $0.25 quarterly dividend to be paid on October 24th, representing an annualized yield of 1.7% amid a negative dividend payout ratio of -15.70%.

Shares of Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) have been given an average rating of "Reduce" by the twenty-one analysts that are currently covering the stock, Marketbeat.com reports. Two research analysts have rated the stock with a sell recommendation, eighteen have issued a hold recommendation and one has issued a buy recommendation on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $51.7845.

Several equities research analysts have recently weighed in on the company. Argus reaffirmed a "hold" rating and issued a $60.52 target price on shares of Advance Auto Parts in a research report on Friday, August 29th. Redburn Partners raised Advance Auto Parts from a "sell" rating to a "neutral" rating and set a $45.00 target price for the company in a research report on Tuesday, June 3rd. Wells Fargo & Company upped their target price on 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. Wall Street Zen raised Advance Auto Parts from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. Finally, Raymond James Financial increased their price target on Advance Auto Parts to $49.17 and gave the company a "hold" rating in a report on Monday, May 26th.

Insider Buying and Selling

In related news, SVP Jason Hand sold 948 shares of the stock in a transaction dated Friday, June 20th. The stock was 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 of the company's stock, valued at approximately $479,183.52. This represents a 8.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 0.67% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Rexford Capital Inc. bought a new position in Advance Auto Parts during the 2nd quarter worth approximately $172,000. Public Sector Pension Investment Board lifted its holdings in Advance Auto Parts by 8.4% during the 2nd quarter. Public Sector Pension Investment Board now owns 203,949 shares of the company's stock worth $9,482,000 after buying an additional 15,790 shares during the last quarter. FORA Capital LLC bought a new position in Advance Auto Parts during the 2nd quarter worth approximately $2,090,000. Headlands Technologies LLC bought a new position in Advance Auto Parts during the 2nd quarter worth approximately $101,000. Finally, State of Tennessee Department of Treasury lifted its holdings in Advance Auto Parts by 61.6% during the 2nd quarter. State of Tennessee Department of Treasury now owns 23,407 shares of the company's stock worth $1,088,000 after buying an additional 8,926 shares during the last quarter. Hedge funds and other institutional investors own 88.70% of the company's stock.

Advance Auto Parts Price Performance

Shares of NYSE AAP opened at $59.65 on Wednesday. Advance Auto Parts has a 1-year low of $28.89 and a 1-year high of $70.00. The business has a 50-day moving average of $57.27 and a 200-day moving average of $45.56. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.27 and a quick ratio of 0.49. The company has a market capitalization of $3.58 billion, a price-to-earnings ratio of -9.36 and a beta of 1.06.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its earnings results on Thursday, August 14th. The company reported $0.69 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.10. Advance Auto Parts had a negative return on equity of 1.97% and a negative net margin of 4.37%.The company had revenue of $2.01 billion during the quarter, compared to the consensus estimate of $1.97 billion. During the same quarter in the prior year, the business earned $0.75 earnings per share. The company's revenue was down 7.7% compared to the same quarter last year. Advance Auto Parts has set its FY 2025 guidance at 1.200-2.20 EPS. On average, equities analysts anticipate that Advance Auto Parts will post -0.46 EPS for the current fiscal year.

Advance Auto Parts Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 24th. Investors of record on Friday, October 10th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Friday, October 10th. This represents a $1.00 dividend on an annualized basis and a yield of 1.7%. Advance Auto Parts's dividend payout ratio is currently -15.70%.

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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