Advance Auto Parts, Inc. (NYSE:AAP) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Advance Auto Parts has a consensus analyst rating of “Hold” from 20 research firms, with 17 hold ratings, two buy ratings, and one sell rating. The average 12-month price target is about $58.66.
• The company recently beat its latest quarterly expectations, reporting $0.77 EPS versus the $0.39 estimate and $2.61 billion in revenue versus the $2.05 billion forecast. It also raised FY 2026 guidance to 2.400–3.100 EPS.
• Advance Auto Parts paid a quarterly dividend of $0.25 per share, equal to an annualized yield of 1.8%. However, its dividend payout ratio is high at 138.89%, which may raise sustainability concerns.

Shares of Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) have been assigned a consensus rating of "Hold" from the twenty research firms that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, seventeen have assigned a hold rating and two have issued a buy rating on the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $58.6575.

AAP has been the topic of a number of research analyst reports. The Goldman Sachs Group increased their price target on shares of Advance Auto Parts from $49.00 to $54.00 and gave the stock a "sell" rating in a report on Friday, May 22nd. BMO Capital Markets lifted their price objective on shares of Advance Auto Parts from $60.00 to $65.00 and gave the stock a "market perform" rating in a report on Friday, May 22nd. Deutsche Bank Aktiengesellschaft upgraded shares of Advance Auto Parts to a "buy" rating in a research report on Friday, May 22nd. TD Cowen reissued a "hold" rating on shares of Advance Auto Parts in a research note on Friday, May 22nd. Finally, UBS Group raised their price target on Advance Auto Parts from $60.00 to $65.00 and gave the company a "neutral" rating in a research report on Friday, May 22nd.

Institutional Trading of Advance Auto Parts

Hedge funds have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd purchased a new stake in Advance Auto Parts in the third quarter worth approximately $31,000. AlphaCore Capital LLC raised its stake in shares of Advance Auto Parts by 53.6% during the fourth quarter. AlphaCore Capital LLC now owns 883 shares of the company's stock worth $35,000 after acquiring an additional 308 shares in the last quarter. Hantz Financial Services Inc. lifted its holdings in shares of Advance Auto Parts by 184.5% in the 4th quarter. Hantz Financial Services Inc. now owns 919 shares of the company's stock worth $36,000 after acquiring an additional 596 shares during the last quarter. Smartleaf Asset Management LLC lifted its holdings in shares of Advance Auto Parts by 290.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company's stock worth $43,000 after acquiring an additional 688 shares during the last quarter. Finally, Leonteq Securities AG purchased a new stake in shares of Advance Auto Parts in the 4th quarter valued at $55,000. Institutional investors own 88.70% of the company's stock.

Advance Auto Parts Stock Performance

Shares of AAP opened at $55.76 on Friday. The company has a market cap of $3.37 billion, a PE ratio of 77.45, a price-to-earnings-growth ratio of 0.88 and a beta of 1.03. 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 stock has a 50-day moving average price of $57.31 and a 200-day moving average price of $53.80. Advance Auto Parts has a 12-month low of $37.89 and a 12-month high of $65.21.

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

Advance Auto Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were given a dividend of $0.25 per share. The ex-dividend date was Friday, July 10th. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. Advance Auto Parts's dividend payout ratio is 138.89%.

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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