Advance Auto Parts (NYSE:AAP) Given New $50.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo & Company has increased the price target for Advance Auto Parts from $45.00 to $50.00, maintaining an "equal weight" rating, suggesting potential downside from the current stock price.
• Advance Auto Parts reported earnings of $0.69 per share, exceeding estimates and generating quarterly revenue of $2.01 billion, despite a year-over-year revenue decline of 7.7%.
• The company has a consensus rating of "Hold" from analysts, with the average target price set at $51.20, influenced by ratings from multiple brokerages including Cowen and Roth Capital.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its price objective upped by equities researchers at Wells Fargo & Company from $45.00 to $50.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target would suggest a potential downside of 12.40% from the stock's current price.

Several other brokerages have also issued reports on AAP. Cowen reissued a "hold" rating on shares of Advance Auto Parts in a research report on Friday, May 23rd. Roth Capital set a $50.00 price target on Advance Auto Parts and gave the company a "neutral" rating in a report on Wednesday, May 28th. UBS Group set a $65.00 target price on Advance Auto Parts and gave the company a "neutral" rating in a research report on Tuesday. DA Davidson set a $65.00 target price on shares of Advance Auto Parts in a research note on Thursday. Finally, Morgan Stanley boosted their price target on shares of Advance Auto Parts from $48.00 to $55.00 and gave the stock an "equal weight" rating in a research note on Friday. Three analysts have rated the stock with a sell rating, nineteen have issued a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat, Advance Auto Parts currently has a consensus rating of "Hold" and an average target price of $51.20.

Advance Auto Parts Stock Performance

Advance Auto Parts stock traded up $0.23 on Friday, reaching $57.08. 1,240,438 shares of the stock were exchanged, compared to its average volume of 2,696,085. Advance Auto Parts has a twelve month low of $28.89 and a twelve month high of $70.00. The company has a current ratio of 1.27, a quick ratio of 0.49 and a debt-to-equity ratio of 0.68. The stock has a market cap of $3.42 billion, a PE ratio of -9.72 and a beta of 1.05. The firm has a fifty day moving average price of $55.06 and a two-hundred day moving average price of $44.64.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its quarterly 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. The firm had revenue of $2.01 billion for the quarter, compared to analyst estimates of $1.97 billion. Advance Auto Parts had a negative return on equity of 1.76% and a negative net margin of 3.74%. The business's quarterly revenue was down 7.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.75 EPS. Sell-side analysts anticipate that Advance Auto Parts will post -0.46 EPS for the current year.

Insider Buying and Selling

In other Advance Auto Parts news, SVP Jason Hand sold 948 shares of Advance Auto Parts stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $48.52, for a total transaction of $45,996.96. Following the transaction, the senior vice president directly owned 9,876 shares in the company, valued at approximately $479,183.52. The trade was a 8.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.35% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Advance Auto Parts

Several hedge funds have recently bought and sold shares of the company. Beaconlight Capital LLC acquired a new position in shares of Advance Auto Parts in the 2nd quarter valued at approximately $3,818,000. Bridgeway Capital Management LLC lifted its position in shares of Advance Auto Parts by 2.9% during the 2nd quarter. Bridgeway Capital Management LLC now owns 376,518 shares of the company's stock valued at $17,504,000 after acquiring an additional 10,509 shares during the period. Bank of America Corp DE raised its holdings in Advance Auto Parts by 6.5% during the second quarter. Bank of America Corp DE now owns 947,754 shares of the company's stock worth $44,061,000 after buying an additional 57,900 shares during the last quarter. Ameriprise Financial Inc. grew its stake in shares of Advance Auto Parts by 2.3% in the 2nd quarter. Ameriprise Financial Inc. now owns 229,188 shares of the company's stock worth $10,655,000 after acquiring an additional 5,170 shares in the last quarter. Finally, California State Teachers Retirement System grew its position in Advance Auto Parts by 1.1% during the second quarter. California State Teachers Retirement System now owns 55,187 shares of the company's stock valued at $2,566,000 after buying an additional 604 shares during the period. 88.75% of the stock is currently owned by institutional investors and hedge funds.

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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