Advance Auto Parts (NYSE:AAP) Shares Cross Above 200-Day Moving Average - Time to Sell?

Key Points

• Shares crossed above the 200-day moving average, trading as high as $60.43 and last at $58.22 on volume of about 985,000, signaling near-term technical strength versus the 200-day MA of $50.37.
• Analyst sentiment remains cautious: MarketBeat shows a consensus rating of "Reduce" with an average price target of $52.93 (2 Buy, 17 Hold, 3 Sell), which is below the current share price.
• Fundamentals are mixed — the company beat Q earnings estimates ($0.86 vs. $0.41) and set FY26 EPS guidance of $2.40–$3.10 (analysts at ~2.74), and announced a $0.25 quarterly dividend (1.7% yield) despite a high dividend payout ratio (~137%).

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report)'s share price passed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $50.37 and traded as high as $60.43. Advance Auto Parts shares last traded at $58.2180, with a volume of 984,864 shares traded.

Analyst Ratings Changes

AAP has been the topic of a number of research reports. TD Cowen reaffirmed a "hold" rating on shares of Advance Auto Parts in a research report on Tuesday, February 17th. Royal Bank Of Canada raised their target price on shares of Advance Auto Parts from $57.00 to $63.00 and gave the stock a "sector perform" rating in a research report on Tuesday, February 17th. BMO Capital Markets raised 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. Northcoast Research raised shares of Advance Auto Parts from a "neutral" rating to a "buy" rating and set a $55.00 target price on the stock in a research report on Wednesday, January 21st. Finally, Truist Financial raised their target price on shares of Advance Auto Parts from $48.00 to $57.00 and gave the stock a "hold" rating in a research report on Tuesday, February 17th. Two equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Advance Auto Parts presently has an average rating of "Reduce" and a consensus price target of $52.93.

Advance Auto Parts Trading Down 2.3%

The company has a market capitalization of $3.51 billion, a PE ratio of 79.75, a price-to-earnings-growth ratio of 1.05 and a beta of 1.04. The company's fifty day moving average is $53.64 and its 200-day moving average is $50.37. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.75 and a quick ratio of 0.87.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its quarterly earnings data on Friday, February 13th. The company reported $0.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.45. The company 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%. Advance Auto Parts's revenue was down 1.2% compared to the same quarter last year. During the same period last year, the company posted ($10.16) earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. On average, analysts anticipate that Advance Auto Parts, Inc. will post 2.74 EPS for the current fiscal year.

Advance Auto Parts Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, April 10th. Advance Auto Parts's dividend payout ratio (DPR) is presently 136.99%.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors have recently bought and sold shares of the business. Salomon & Ludwin LLC purchased a new position in Advance Auto Parts in the third quarter worth $26,000. Caitong International Asset Management Co. Ltd purchased a new position in Advance Auto Parts in the third quarter worth $31,000. AlphaCore Capital LLC grew its holdings in Advance Auto Parts by 6,288.9% in the third 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 grew its holdings in Advance Auto Parts by 198.0% in the third 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. Finally, Atlantic Union Bankshares Corp purchased a new position in Advance Auto Parts in the third quarter worth $52,000. 88.70% of the stock is owned by hedge funds and other institutional investors.

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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