Advance Auto Parts (NYSE:AAP) Stock Price Down 4.9% - Here's Why

Key Points

• Advance Auto Parts' stock fell by 4.9% to a trading price of $58.36, significantly below its previous close of $61.34, with trading volume down by 93% compared to the average.
• The company reported earnings of $0.69 per share, exceeding expectations, despite a 7.7% decline in revenue compared to the previous year.
• Advance Auto Parts announced a quarterly dividend of $0.25 per share, reflecting an annual yield of 1.7%, with a payout ratio currently at -15.70%.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) dropped 4.9% during mid-day trading on Monday . The stock traded as low as $58.27 and last traded at $58.36. Approximately 184,510 shares changed hands during mid-day trading, a decline of 93% from the average daily volume of 2,481,050 shares. The stock had previously closed at $61.34.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Evercore ISI upped their price objective on shares of Advance Auto Parts from $56.00 to $58.00 and gave the stock an "in-line" rating in a research note on Tuesday, August 12th. Truist Financial boosted their price target on Advance Auto Parts from $51.00 to $53.00 and gave the stock a "hold" rating in a research note on Friday, August 15th. DA Davidson set a $65.00 price objective on Advance Auto Parts in a research note on Thursday, August 14th. Argus reiterated a "hold" rating and set a $60.52 price objective on shares of Advance Auto Parts in a research note on Friday, August 29th. Finally, UBS Group set a $65.00 price target on shares of Advance Auto Parts and gave the stock a "neutral" rating in a report on Tuesday, August 12th. One investment analyst has rated the stock with a Buy rating, nineteen have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus target price of $52.03.

Advance Auto Parts Stock Performance

The stock has a market capitalization of $3.50 billion, a PE ratio of -9.16 and a beta of 1.08. The firm's 50 day moving average is $59.35 and its two-hundred day moving average is $49.15. 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 released its quarterly earnings data on Thursday, August 14th. The company reported $0.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.59 by $0.10. Advance Auto Parts had a negative net margin of 4.37% and a negative return on equity of 1.97%. The business had revenue of $2.01 billion during the quarter, compared to analysts' expectations of $1.97 billion. During the same period in the previous year, the company earned $0.75 EPS. The company's revenue for the quarter was down 7.7% on a year-over-year basis. Advance Auto Parts has set its FY 2025 guidance at 1.200-2.20 EPS. As a group, research analysts predict that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current year.

Advance Auto Parts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 24th. Investors of record on Friday, October 10th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, October 10th. This represents a $1.00 dividend on an annualized basis and a yield of 1.7%. Advance Auto Parts's payout ratio is currently -15.70%.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors and hedge funds have recently modified their holdings of the company. REAP Financial Group LLC purchased a new position in shares of Advance Auto Parts in the 2nd quarter worth about $26,000. Hexagon Capital Partners LLC raised its position in shares of Advance Auto Parts by 189.0% in the 1st quarter. Hexagon Capital Partners LLC now owns 711 shares of the company's stock valued at $28,000 after purchasing an additional 465 shares in the last quarter. Smartleaf Asset Management LLC boosted its stake in Advance Auto Parts by 290.3% during the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company's stock valued at $43,000 after acquiring an additional 688 shares during the last quarter. Parallel Advisors LLC grew its stake in Advance Auto Parts by 355.8% in the second quarter. Parallel Advisors LLC now owns 939 shares of the company's stock worth $44,000 after purchasing an additional 733 shares in the last quarter. Finally, Allworth Financial LP increased its holdings in shares of Advance Auto Parts by 283.0% in the 2nd quarter. Allworth Financial LP now owns 1,264 shares of the company's stock valued at $59,000 after acquiring an additional 934 shares during the last quarter. Hedge funds and other institutional investors own 88.70% of the company's stock.

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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