Advance Auto Parts (NYSE:AAP) Stock Crosses Above Two Hundred Day Moving Average - What's Next?

Key Points

• Technical breakout: Advance Auto Parts shares crossed above their 200-day moving average ($50.63), trading as high as $53.26 and last at $53.01, with the 50-day MA at $52.67—a short-term bullish signal.
• Earnings beat but mixed fundamentals: The company reported $0.86 EPS vs. $0.41 expected and $1.97B revenue (down 1.2% YoY) and set FY2026 guidance of $2.40–3.10 EPS, while valuation metrics include a P/E of 72.6 and market cap of ~$3.19B.
• Analyst views and dividend: Analysts are mixed (average rating "Reduce" with an average price target $52.93 — 2 buys, 17 holds, 3 sells), and AAP declared a $0.25 quarterly dividend (1.9% yield) despite a high payout ratio (~137%).

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) shares crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $50.63 and traded as high as $53.26. Advance Auto Parts shares last traded at $53.0080, with a volume of 856,444 shares.

Wall Street Analysts Forecast Growth

AAP has been the subject of several recent analyst reports. Northcoast Research raised shares of Advance Auto Parts from a "neutral" rating to a "buy" rating and set a $55.00 price objective for the company in a research report on Wednesday, January 21st. Truist Financial boosted their price target on shares of Advance Auto Parts from $48.00 to $57.00 and gave the company a "hold" rating in a research report on Tuesday, February 17th. DA Davidson set a $58.00 price target on shares of Advance Auto Parts in a research report on Tuesday, February 17th. Royal Bank Of Canada upped their target price on shares of Advance Auto Parts from $57.00 to $63.00 and gave the company a "sector perform" rating in a report on Tuesday, February 17th. Finally, Evercore set a $60.00 target price on shares of Advance Auto Parts in a report on Wednesday, February 11th. Two research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Advance Auto Parts has an average rating of "Reduce" and an average price target of $52.93.

Advance Auto Parts Stock Up 2.3%

The company has a debt-to-equity ratio of 1.55, a current ratio of 1.75 and a quick ratio of 0.87. The firm's 50-day simple moving average is $52.67 and its two-hundred day simple moving average is $50.63. The company has a market capitalization of $3.19 billion, a price-to-earnings ratio of 72.61, a price-to-earnings-growth ratio of 0.69 and a beta of 1.04.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its earnings results on Friday, February 13th. The company reported $0.86 earnings per share for the quarter, topping 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%. The firm's revenue for the quarter was down 1.2% compared to the same quarter last year. During the same period in the prior year, the business posted ($10.16) earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. Sell-side analysts predict that Advance Auto Parts, Inc. will post -0.46 EPS for the current fiscal year.

Advance Auto Parts Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Stockholders of record on Friday, April 10th will be given a $0.25 dividend. The ex-dividend date is Friday, April 10th. This represents a $1.00 annualized dividend and a dividend yield of 1.9%. Advance Auto Parts's dividend payout ratio is currently 136.99%.

Institutional Trading of Advance Auto Parts

Large investors have recently modified their holdings of the business. Hsbc Holdings PLC raised its stake in Advance Auto Parts by 34.9% during the fourth quarter. Hsbc Holdings PLC now owns 8,936 shares of the company's stock worth $351,000 after purchasing an additional 2,312 shares during the period. T. Rowe Price Investment Management Inc. grew its holdings in Advance Auto Parts by 10.6% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 723,677 shares of the company's stock valued at $28,441,000 after purchasing an additional 69,476 shares in the last quarter. XTX Topco Ltd acquired a new stake in Advance Auto Parts during the 4th quarter valued at $481,000. Wellington Management Group LLP grew its holdings in Advance Auto Parts by 52.4% during the 4th quarter. Wellington Management Group LLP now owns 834,413 shares of the company's stock valued at $32,792,000 after purchasing an additional 287,013 shares in the last quarter. Finally, SummitTX Capital L.P. grew its holdings in Advance Auto Parts by 445.4% during the 4th quarter. SummitTX Capital L.P. now owns 41,717 shares of the company's stock valued at $1,639,000 after purchasing an additional 34,068 shares in the last quarter. 88.70% of the stock is currently owned by institutional investors and hedge funds.

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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