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

Key Points

• Advance Auto Parts has a consensus analyst rating of "Reduce" from 22 brokerages, with most analysts recommending hold and only two calling it a buy.
• The company beat quarterly earnings estimates, reporting $0.86 EPS versus the expected $0.41, while revenue came in slightly above forecasts at $1.97 billion.
• Shares opened at $56.17, and the stock has ranged from $30.84 to $70.00 over the past 12 months; the company also pays a quarterly dividend of $0.25 per share, yielding about 1.8%.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) has received a consensus recommendation of "Reduce" from the twenty-two brokerages that are currently covering the stock, Marketbeat Ratings reports. Three analysts have rated the stock with a sell recommendation, seventeen have assigned a hold recommendation and two have issued a buy recommendation on the company. The average 1 year price objective among analysts that have covered the stock in the last year is $52.9311.

A number of equities research analysts have recently weighed in on the stock. Wells Fargo & Company raised their price target on shares of Advance Auto Parts from $40.00 to $50.00 and gave the company an "equal weight" rating in a research note on Wednesday, February 11th. Citigroup upgraded shares of Advance Auto Parts from a "hold" rating to a "buy" rating in a research note on Wednesday, January 21st. UBS Group restated a "neutral" rating on shares of Advance Auto Parts in a research note on Monday, February 9th. DA Davidson set a $58.00 price target on shares of Advance Auto Parts in a research note on Tuesday, February 17th. Finally, Evercore set a $60.00 price target on shares of Advance Auto Parts in a research note on Wednesday, February 11th.

Advance Auto Parts Trading Up 0.0%

Shares of Advance Auto Parts stock opened at $56.17 on Monday. The company has a market capitalization of $3.39 billion, a price-to-earnings ratio of 76.94, a PEG ratio of 0.98 and a beta of 1.06. The company has a quick ratio of 0.87, a current ratio of 1.75 and a debt-to-equity ratio of 1.55. Advance Auto Parts has a 12-month low of $30.84 and a 12-month high of $70.00. The firm's 50-day moving average price is $53.81 and its two-hundred day moving average price is $50.54.

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, beating analysts' consensus estimates of $0.41 by $0.45. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The company had revenue of $1.97 billion for the quarter, compared to the consensus estimate of $1.95 billion. During the same period last year, the company posted ($10.16) EPS. The firm's quarterly revenue was down 1.2% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. On average, analysts forecast that Advance Auto Parts will post 2.77 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

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

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd bought a new position in Advance Auto Parts during the 3rd quarter worth $31,000. AlphaCore Capital LLC raised its position in Advance Auto Parts by 6,288.9% during the 3rd quarter. AlphaCore Capital LLC now owns 575 shares of the company's stock worth $35,000 after purchasing an additional 566 shares during the last quarter. Farther Finance Advisors LLC raised its position in Advance Auto Parts by 198.0% during the 3rd quarter. Farther Finance Advisors LLC now owns 751 shares of the company's stock worth $46,000 after purchasing an additional 499 shares during the last quarter. Atlantic Union Bankshares Corp bought a new position in Advance Auto Parts during the 3rd quarter worth $52,000. Finally, Westfuller Advisors LLC bought a new position in Advance Auto Parts during the 3rd quarter worth $56,000. 88.70% of the stock is owned by 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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