Advance Auto Parts (NYSE:AAP) Shares Gap Down - Here's What Happened

Key Points

• Advance Auto Parts shares gapped down from $61.81 to $54.00 before the market opened, and last traded at $52.40 with a volume of over 1.3 million shares.
• Equities analysts' ratings reflect a consensus of "Hold", with a price target averaging at $49.82, following upgrades from multiple firms.
• The company declared a quarterly dividend of $0.25 per share, with a yield of 1.8%, scheduled for payment on October 24th to shareholders of record on October 10th.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $61.81, but opened at $54.00. Advance Auto Parts shares last traded at $52.40, with a volume of 1,391,944 shares.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the stock. Redburn Atlantic upgraded shares of Advance Auto Parts from a "sell" rating to a "neutral" rating and raised their target price for the stock from $28.00 to $45.00 in a research report on Tuesday, June 3rd. Citigroup set a $60.00 target price on shares of Advance Auto Parts in a research report on Thursday. Morgan Stanley lifted their price objective on shares of Advance Auto Parts from $45.00 to $48.00 and gave the company an "equal weight" rating in a research report on Friday, May 23rd. Mizuho lifted their price objective on shares of Advance Auto Parts from $38.00 to $44.00 and gave the company a "neutral" rating in a research report on Thursday, July 3rd. Finally, UBS Group set a $65.00 price objective on shares of Advance Auto Parts and gave the company a "neutral" rating in a research report on Tuesday. Three analysts have rated the stock with a sell rating, nineteen have given a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $49.82.

Advance Auto Parts Price Performance

The stock has a 50 day moving average of $54.97 and a two-hundred day moving average of $44.58. The stock has a market cap of $3.31 billion, a PE ratio of -9.32 and a beta of 1.05. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.49 and a current ratio of 1.27.

Advance Auto Parts (NYSE:AAP - Get Free Report) last announced its quarterly earnings data on Thursday, August 14th. The company reported $0.69 EPS for the quarter, topping analysts' consensus estimates of $0.59 by $0.10. Advance Auto Parts had a negative return on equity of 1.76% and a negative net margin of 3.74%. During the same quarter last year, the firm posted $0.75 earnings per share. Advance Auto Parts's quarterly revenue was down 7.7% on a year-over-year basis. Equities analysts anticipate that Advance Auto Parts, Inc. will post -0.46 EPS for the current year.

Advance Auto Parts Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 24th. Stockholders of record on Friday, October 10th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. Advance Auto Parts's dividend payout ratio is -17.04%.

Insider Activity

In related news, SVP Jason Hand sold 948 shares of the business's stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $48.52, for a total value of $45,996.96. Following the completion of the sale, 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 Securities & Exchange Commission, which is available through this link. 0.35% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. REAP Financial Group LLC bought a new position in Advance Auto Parts in the 2nd quarter worth approximately $26,000. Hexagon Capital Partners LLC increased its position in shares of Advance Auto Parts by 189.0% during the first quarter. Hexagon Capital Partners LLC now owns 711 shares of the company's stock valued at $28,000 after purchasing an additional 465 shares during the period. Parallel Advisors LLC increased its position in shares of Advance Auto Parts by 355.8% during the second quarter. Parallel Advisors LLC now owns 939 shares of the company's stock valued at $44,000 after purchasing an additional 733 shares during the period. Advisory Services Network LLC bought a new stake in shares of Advance Auto Parts during the fourth quarter valued at approximately $46,000. Finally, Financial Management Professionals Inc. bought a new stake in shares of Advance Auto Parts during the first quarter valued at approximately $49,000. 88.75% of the stock is owned by institutional investors.

Advance Auto Parts Company Profile

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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