Advance Auto Parts (NYSE:AAP) Trading Up 5.6% - Should You Buy?

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) rose 5.6% during mid-day trading on Wednesday . The stock traded as high as $51.83 and last traded at $52.39. Approximately 1,032,111 shares traded hands during mid-day trading, a decline of 61% from the average daily volume of 2,631,419 shares. The stock had previously closed at $49.60.

Wall Street Analyst Weigh In

Several brokerages recently commented on AAP. Royal Bank of Canada reduced their price target on shares of Advance Auto Parts from $50.00 to $44.00 and set a "sector perform" rating for the company in a research report on Thursday, February 27th. Wedbush reaffirmed an "outperform" rating and issued a $55.00 target price on shares of Advance Auto Parts in a research report on Monday, March 3rd. Cowen reissued a "hold" rating on shares of Advance Auto Parts in a research report on Friday. Bank of America increased their price objective on Advance Auto Parts from $33.00 to $39.00 and gave the stock an "underperform" rating in a research note on Friday, May 23rd. Finally, Wells Fargo & Company set a $35.00 target price on Advance Auto Parts and gave the company an "equal weight" rating in a research note on Monday, May 19th. One equities research analyst has rated the stock with a sell rating, nineteen have assigned a hold rating and one has given a buy rating to the company's stock. According to data from MarketBeat.com, Advance Auto Parts has an average rating of "Hold" and a consensus price target of $45.90.

Advance Auto Parts Stock Up 6.3%

The firm's fifty day moving average is $35.10 and its 200 day moving average is $40.53. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.62 and a current ratio of 1.34. The firm has a market cap of $3.15 billion, a P/E ratio of 71.94, a P/E/G ratio of 1.98 and a beta of 0.93.

Advance Auto Parts (NYSE:AAP - Get Free Report) last announced its quarterly earnings data on Thursday, May 22nd. The company reported ($0.22) 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 business had revenue of $2.58 billion during the quarter, compared to the consensus estimate of $2.51 billion. During the same period in the previous year, the business earned $0.67 earnings per share. The company's revenue was down 24.2% on a year-over-year basis. As a group, equities research analysts anticipate that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, July 11th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.90%. The ex-dividend date is Friday, July 11th. Advance Auto Parts's dividend payout ratio is currently -17.04%.

Insiders Place Their Bets

In related news, CEO Shane M. Okelly acquired 1,500 shares of the firm's stock in a transaction that occurred on Tuesday, March 11th. The shares were bought at an average cost of $36.79 per share, for a total transaction of $55,185.00. Following the completion of the transaction, the chief executive officer now owns 183,121 shares in the company, valued at approximately $6,737,021.59. This trade represents a 0.83% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Eugene I. Lee, Jr. purchased 14,640 shares of Advance Auto Parts stock in a transaction that occurred on Thursday, March 6th. The shares were bought at an average price of $34.15 per share, for a total transaction of $499,956.00. Following the completion of the transaction, the director now owns 34,070 shares in the company, 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 0.35% of the company's stock.

Institutional Investors Weigh In On Advance Auto Parts

Institutional investors have recently modified their holdings of the business. Hexagon Capital Partners LLC grew its position in Advance Auto Parts by 189.0% in the first quarter. Hexagon Capital Partners LLC now owns 711 shares of the company's stock worth $28,000 after acquiring an additional 465 shares in the last quarter. Allworth Financial LP increased its stake in shares of Advance Auto Parts by 1,543.4% in the 4th quarter. Allworth Financial LP now owns 871 shares of the company's stock valued at $40,000 after purchasing an additional 818 shares in the last quarter. Vision Financial Markets LLC acquired a new stake in Advance Auto Parts in the 4th quarter valued at $42,000. Advisory Services Network LLC acquired a new stake in shares of Advance Auto Parts in the fourth quarter valued at about $46,000. Finally, Financial Management Professionals Inc. acquired a new position in shares of Advance Auto Parts during the 1st quarter valued at about $49,000. 88.75% of the stock is owned by hedge funds and other 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.

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