Advance Auto Parts (NYSE:AAP) Share Price Crosses Above 200-Day Moving Average - Should You Sell?

Key Points

• Advance Auto Parts' stock crossed above its 200-day moving average of $50.46, trading as high as $57 and last at $56.76 on volume of about 1.16 million shares, indicating short-term technical strength.
• The company beat quarterly expectations with $0.86 EPS vs. $0.41 expected and $1.97B revenue vs. $1.95B, and set FY2026 guidance of $2.40–3.10 EPS.
• Despite the upside, analysts' consensus is a "Reduce" rating with a $52.93 price target (two Buys, 17 Holds, three Sells), implying the average target sits below the current share price.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report)'s stock price passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $50.46 and traded as high as $57.00. Advance Auto Parts shares last traded at $56.7610, with a volume of 1,158,292 shares traded.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Evercore set a $60.00 target price on shares of Advance Auto Parts in a research report on Wednesday, February 11th. Roth Mkm reiterated a "neutral" rating and issued a $57.00 target price on shares of Advance Auto Parts in a research report on Thursday, February 19th. Morgan Stanley set a $60.00 target price on shares of Advance Auto Parts in a research report on Tuesday, February 17th. BMO Capital Markets lifted their target price on shares of Advance Auto Parts from $55.00 to $60.00 and gave the stock a "market perform" rating in a research report on Tuesday, February 17th. Finally, Citigroup upgraded shares of Advance Auto Parts from a "hold" rating to a "buy" rating in a research report on Wednesday, January 21st. Two investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $52.93.

Advance Auto Parts Stock Performance

The firm has a market cap of $3.42 billion, a P/E ratio of 77.75, a price-to-earnings-growth ratio of 0.75 and a beta of 1.04. The company has a current ratio of 1.75, a quick ratio of 0.87 and a debt-to-equity ratio of 1.55. The business's fifty day simple moving average is $53.44 and its 200-day simple moving average is $50.46.

Advance Auto Parts (NYSE:AAP - Get Free Report) last announced its quarterly earnings results on Friday, February 13th. The company reported $0.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.41 by $0.45. The business 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%. The company's revenue was down 1.2% on a year-over-year basis. During the same quarter last year, the firm earned ($10.16) EPS. 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, Inc. will post -0.46 earnings per share for the current year.

Advance Auto Parts Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, April 10th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Friday, April 10th. Advance Auto Parts's dividend payout ratio (DPR) is 136.99%.

Institutional Investors Weigh In On Advance Auto Parts

A number of large investors have recently added to or reduced their stakes in the company. Amalgamated Bank grew its holdings in Advance Auto Parts by 1.1% in the 3rd quarter. Amalgamated Bank now owns 17,270 shares of the company's stock worth $1,060,000 after acquiring an additional 185 shares during the last quarter. Hsbc Holdings PLC lifted its position in shares of Advance Auto Parts by 3.1% in the 2nd quarter. Hsbc Holdings PLC now owns 6,306 shares of the company's stock worth $293,000 after purchasing an additional 191 shares during the period. Arizona State Retirement System lifted its position in shares of Advance Auto Parts by 1.6% in the 3rd quarter. Arizona State Retirement System now owns 17,733 shares of the company's stock worth $1,089,000 after purchasing an additional 272 shares during the period. Envestnet Asset Management Inc. lifted its position in shares of Advance Auto Parts by 0.6% in the 3rd quarter. Envestnet Asset Management Inc. now owns 54,237 shares of the company's stock worth $3,330,000 after purchasing an additional 297 shares during the period. Finally, AlphaCore Capital LLC lifted its position in shares of Advance Auto Parts by 53.6% in the 4th quarter. AlphaCore Capital LLC now owns 883 shares of the company's stock worth $35,000 after purchasing an additional 308 shares during the period. Institutional investors own 88.70% of the company's stock.

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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