Advance Auto Parts (NYSE:AAP) Shares Gap Up Following Earnings Beat

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report)'s stock price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $31.31, but opened at $43.07. Advance Auto Parts shares last traded at $45.11, with a volume of 6,182,069 shares traded.

The company reported ($0.22) EPS for the quarter, topping the consensus estimate of ($0.77) by $0.55. Advance Auto Parts had a net margin of 0.41% and a return on equity of 1.82%. The business had revenue of $2.58 billion during the quarter, compared to analysts' expectations of $2.51 billion. During the same quarter in the prior year, the company posted $0.67 earnings per share. The firm's revenue was down 24.2% on a year-over-year basis.

Analyst Ratings Changes

A number of brokerages have weighed in on AAP. Wedbush reissued an "outperform" rating and set a $55.00 price target on shares of Advance Auto Parts in a research report on Monday, March 3rd. Royal Bank of Canada reduced their target price on Advance Auto Parts from $50.00 to $44.00 and set a "sector perform" rating for the company in a research note on Thursday, February 27th. Truist Financial dropped their price target on Advance Auto Parts from $39.00 to $34.00 and set a "hold" rating on the stock in a research note on Thursday, February 27th. Evercore ISI reduced their price objective on shares of Advance Auto Parts from $37.00 to $35.00 and set an "in-line" rating for the company in a research report on Tuesday, March 11th. Finally, Citigroup decreased their price objective on shares of Advance Auto Parts from $47.00 to $40.00 and set a "neutral" rating on the stock in a report on Thursday, February 27th. One analyst has rated the stock with a sell rating, sixteen have given a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat.com, Advance Auto Parts currently has a consensus rating of "Hold" and a consensus price target of $44.50.

Insiders Place Their Bets

In other news, CEO Shane M. Okelly purchased 1,500 shares of Advance Auto Parts stock in a transaction that occurred on Tuesday, March 11th. The shares were acquired at an average price of $36.79 per share, for a total transaction of $55,185.00. Following the transaction, the chief executive officer now owns 183,121 shares of the company's stock, valued at approximately $6,737,021.59. The trade was a 0.83% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Eugene I. Lee, Jr. acquired 14,640 shares of the firm's stock in a transaction that occurred on Thursday, March 6th. The stock was purchased at an average cost of $34.15 per share, for a total transaction of $499,956.00. Following the completion of the purchase, the director now directly owns 34,070 shares of the company's stock, valued at $1,163,490.50. The trade was a 75.35% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 0.67% of the company's stock.

Institutional Investors Weigh In On Advance Auto Parts

A number of large investors have recently modified their holdings of AAP. Nisa Investment Advisors LLC grew its position in Advance Auto Parts by 58.7% in the fourth quarter. Nisa Investment Advisors LLC now owns 19,689 shares of the company's stock valued at $931,000 after acquiring an additional 7,285 shares during the last quarter. SG Americas Securities LLC increased its position in Advance Auto Parts by 57.2% during the 4th quarter. SG Americas Securities LLC now owns 8,603 shares of the company's stock worth $407,000 after purchasing an additional 3,130 shares in the last quarter. Blue Trust Inc. lifted its stake in Advance Auto Parts by 75.9% in the 4th quarter. Blue Trust Inc. now owns 2,119 shares of the company's stock valued at $100,000 after purchasing an additional 914 shares during the last quarter. KBC Group NV boosted its position in Advance Auto Parts by 51.6% in the fourth quarter. KBC Group NV now owns 2,651 shares of the company's stock valued at $125,000 after buying an additional 902 shares in the last quarter. Finally, OLD National Bancorp IN acquired a new position in shares of Advance Auto Parts during the fourth quarter worth $312,000. Institutional investors and hedge funds own 88.75% of the company's stock.

Advance Auto Parts Stock Up 46.3%

The company has a market capitalization of $2.74 billion, a price-to-earnings ratio of 62.59, a P/E/G ratio of 1.98 and a beta of 0.93. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.34 and a quick ratio of 0.62. The firm's fifty day moving average price is $34.17 and its 200-day moving average price is $40.22.

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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