Advance Auto Parts (NYSE:AAP) Stock Price Down 4.9% - What's Next?

Key Points

• Advance Auto Parts shares fell 4.9% on Friday, trading as low as $55.65 after closing at $58.62 the prior session, with volume well below average.
• The company delivered a strong Q1 earnings beat, reporting EPS of $0.77 versus $0.39 expected and revenue of $2.61 billion versus $2.57 billion expected, helped by a 3.5% rise in comparable sales.
• Despite the solid quarter, management reaffirmed full-year 2026 guidance instead of raising it, while analysts mostly kept neutral/hold views even as several lifted price targets into the $60-$65 range.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report)'s stock price was down 4.9% on Friday . The company traded as low as $55.65 and last traded at $55.7750. Approximately 824,622 shares changed hands during mid-day trading, a decline of 55% from the average daily volume of 1,827,023 shares. The stock had previously closed at $58.62.

More Advance Auto Parts News

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: Advance Auto Parts reported Q1 EPS of $0.77 versus the $0.39 consensus and revenue of $2.61 billion versus $2.57 billion expected, signaling better-than-expected execution. Article: Advance Auto Parts earnings report
• Positive Sentiment: Comparable sales rose 3.5%, with mid-single-digit growth in Pro and low-single-digit growth in DIY, suggesting demand is improving across key customer channels. Article: Advance Auto Q1 Earnings Beat Estimates on Strong Comps Growth
• Positive Sentiment: Gross margin and operating margin expanded meaningfully, with management pointing to higher product margins and fewer store-optimization headwinds, which supports the case for a sustained recovery. Article: Advance Auto Parts surges as Q1 results show comps and margins rebounding
• Positive Sentiment: Multiple brokerages lifted price targets to $60-$65, including Citigroup, Morgan Stanley, UBS, RBC, and BMO, indicating analysts see more upside even while keeping neutral/equal-weight style ratings. Article: Analyst price target updates
• Neutral Sentiment: The company reaffirmed full-year 2026 guidance rather than raising it, which may have tempered some enthusiasm despite the strong quarter. Article: Q1 2026 results and guidance
• Neutral Sentiment: Advance Auto Parts also declared a quarterly dividend of $0.25 per share, a supportive but not major near-term catalyst for the stock. Article: Dividend announcement

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on AAP shares. Weiss Ratings reissued a "sell (d+)" rating on shares of Advance Auto Parts in a research report on Friday, May 15th. Wells Fargo & Company boosted their price objective on shares of Advance Auto Parts from $50.00 to $60.00 and gave the company an "equal weight" rating in a research report on Friday. Royal Bank Of Canada boosted their price objective on shares of Advance Auto Parts from $62.00 to $65.00 and gave the company a "sector perform" rating in a research report on Friday. Truist Financial boosted their price objective on shares of Advance Auto Parts from $55.00 to $62.00 and gave the company a "hold" rating in a research report on Thursday. Finally, TD Cowen reaffirmed a "hold" rating on shares of Advance Auto Parts in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $56.19.

Advance Auto Parts Stock Down 1.1%

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 moving average is $53.84 and its 200 day moving average is $50.37. The stock has a market cap of $3.50 billion, a price-to-earnings ratio of 79.38, a price-to-earnings-growth ratio of 0.90 and a beta of 1.06.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its quarterly earnings results on Thursday, May 21st. The company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.39 by $0.38. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The firm had revenue of $2.61 billion during the quarter, compared to analyst estimates of $2.57 billion. During the same quarter in the prior year, the business posted $0.40 earnings per share. Advance Auto Parts's revenue for the quarter was up 1.2% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. Sell-side analysts anticipate that Advance Auto Parts, Inc. will post 2.77 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $1.00 annualized dividend and a yield of 1.7%. Advance Auto Parts's dividend payout ratio is 136.99%.

Institutional Investors Weigh In On Advance Auto Parts

Large investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Advance Auto Parts in the third quarter worth $31,000. AlphaCore Capital LLC increased its position in shares of 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 acquiring an additional 566 shares in the last quarter. Atlantic Union Bankshares Corp acquired a new stake in shares of Advance Auto Parts in the third quarter worth $52,000. Westfuller Advisors LLC acquired a new stake in shares of Advance Auto Parts in the third quarter worth $56,000. Finally, Hantz Financial Services Inc. increased its position in shares of Advance Auto Parts by 184.5% in the fourth quarter. Hantz Financial Services Inc. now owns 919 shares of the company's stock worth $36,000 after acquiring an additional 596 shares in the last quarter. Institutional investors and hedge funds own 88.70% of the company's stock.

Advance Auto Parts Company Profile

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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