Advance Auto Parts (NYSE:AAP) Shares Down 4% - Here's Why

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) shares dropped 4% during trading on Thursday . The stock traded as low as $50.84 and last traded at $50.59. Approximately 698,641 shares traded hands during trading, a decline of 72% from the average daily volume of 2,464,010 shares. The stock had previously closed at $52.71.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on AAP shares. Evercore ISI raised their target price on shares of Advance Auto Parts from $35.00 to $45.00 and gave the company an "in-line" rating in a research note on Friday, May 23rd. Roth Capital set a $50.00 target price on shares of Advance Auto Parts and gave the company a "neutral" rating in a research note on Wednesday. Wells Fargo & Company set a $35.00 target price on shares of Advance Auto Parts and gave the company an "equal weight" rating in a research note on Monday, May 19th. Citigroup lowered their target price on shares of Advance Auto Parts from $47.00 to $40.00 and set a "neutral" rating on the stock in a research note on Thursday, February 27th. Finally, BMO Capital Markets reiterated a "market perform" rating and issued a $50.00 target price (up from $40.00) on shares of Advance Auto Parts in a research note on Friday, May 23rd. One equities research analyst has rated the stock with a sell rating, eighteen have assigned a hold rating and one has given a buy rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $46.11.

Advance Auto Parts Stock Down 0.8%

The business's fifty day moving average price is $35.81 and its 200 day moving average price is $40.73. The company has a market capitalization of $2.87 billion, a P/E ratio of 65.74, a P/E/G ratio of 1.98 and a beta of 0.93. The company has a current ratio of 1.34, a quick ratio of 0.62 and a debt-to-equity ratio of 0.69.

Advance Auto Parts (NYSE:AAP - Get Free Report) last announced its quarterly earnings results on Thursday, May 22nd. The company reported ($0.22) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.81) by $0.59. Advance Auto Parts had a net margin of 0.41% and a return on equity of 1.82%. The firm had revenue of $2.58 billion during the quarter, compared to the consensus estimate of $2.51 billion. During the same period last year, the firm posted $0.67 EPS. The firm's quarterly revenue was down 24.2% on a year-over-year basis. As a group, equities research analysts predict that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current fiscal year.

Advance Auto Parts Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, July 11th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.08%. The ex-dividend date of this dividend is Friday, July 11th. Advance Auto Parts's dividend payout ratio is currently -17.04%.

Insider Activity at Advance Auto Parts

In related news, Director Eugene I. Lee, Jr. bought 14,640 shares of the company's stock in a transaction on Thursday, March 6th. The stock was bought at an average cost of $34.15 per share, with a total value of $499,956.00. Following the completion of the purchase, the director now owns 34,070 shares in the company, valued at approximately $1,163,490.50. The trade was a 75.35% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Shane M. Okelly bought 1,500 shares of the company's stock in a transaction on Tuesday, March 11th. The stock was bought at an average cost of $36.79 per share, with a total value of $55,185.00. Following the completion of the purchase, 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 disclosure for this purchase can be found here. 0.35% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Advance Auto Parts

A number of institutional investors have recently modified their holdings of the stock. Hexagon Capital Partners LLC raised its stake 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 worth $28,000 after buying an additional 465 shares during the last quarter. Allworth Financial LP raised its stake in shares of Advance Auto Parts by 1,543.4% during the fourth quarter. Allworth Financial LP now owns 871 shares of the company's stock worth $40,000 after buying an additional 818 shares during the last quarter. Vision Financial Markets LLC bought a new stake in shares of Advance Auto Parts during the fourth quarter worth approximately $42,000. Advisory Services Network LLC bought a new stake in shares of Advance Auto Parts during the fourth quarter worth approximately $46,000. Finally, Financial Management Professionals Inc. bought a new stake in shares of Advance Auto Parts during the first quarter worth 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.