Advance Auto Parts (NYSE:AAP) Trading 6.9% Higher - Should You Buy?

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) shares rose 6.9% during trading on Tuesday . The company traded as high as $48.42 and last traded at $49.71. Approximately 281,661 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 2,552,897 shares. The stock had previously closed at $46.49.

Analysts Set New Price Targets

Several equities research analysts have recently commented on AAP shares. Cowen reissued a "hold" rating on shares of Advance Auto Parts in a research note on Friday, May 23rd. Evercore ISI raised their price target on Advance Auto Parts from $50.00 to $52.00 and gave the company an "in-line" rating in a report on Tuesday, June 24th. DA Davidson boosted their price objective on Advance Auto Parts from $45.00 to $47.00 and gave the stock a "neutral" rating in a report on Friday, May 23rd. Mizuho upped their target price on shares of Advance Auto Parts from $38.00 to $44.00 and gave the company a "neutral" rating in a research report on Thursday. Finally, Morgan Stanley lifted their price target on shares of Advance Auto Parts from $45.00 to $48.00 and gave the stock an "equal weight" rating in a research report on Friday, May 23rd. Three equities research analysts have rated the stock with a sell rating, nineteen have issued a hold rating and one has issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $46.53.

Advance Auto Parts Stock Up 4.2%

The company has a current ratio of 1.27, a quick ratio of 0.49 and a debt-to-equity ratio of 0.68. The firm's fifty day moving average price is $43.23 and its 200-day moving average price is $41.89. The company has a market cap of $3.06 billion, a price-to-earnings ratio of -8.70 and a beta of 1.04.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its earnings results on Thursday, May 22nd. The company reported ($0.22) earnings per share for the quarter, topping the consensus estimate of ($0.81) by $0.59. Advance Auto Parts had a negative return on equity of 1.76% and a negative net margin of 3.74%. The firm had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.51 billion. During the same period in the previous year, the company posted $0.67 earnings per share. The company's revenue for the quarter was down 24.2% on a year-over-year basis. Sell-side analysts predict that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current year.

Advance Auto Parts Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, July 11th will be given a $0.25 dividend. The ex-dividend date is Friday, July 11th. This represents a $1.00 annualized dividend and a dividend yield of 1.96%. Advance Auto Parts's dividend payout ratio is presently -17.04%.

Insider Transactions at Advance Auto Parts

In other Advance Auto Parts news, SVP Jason Hand sold 948 shares of the firm's stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $48.52, for a total transaction of $45,996.96. Following the sale, the senior vice president directly owned 9,876 shares in the company, valued at approximately $479,183.52. This trade represents a 8.76% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.35% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD raised its holdings in shares of Advance Auto Parts by 34.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 6,685,541 shares of the company's stock worth $316,160,000 after acquiring an additional 1,706,328 shares during the period. Pzena Investment Management LLC increased its holdings in Advance Auto Parts by 31.8% during the 1st quarter. Pzena Investment Management LLC now owns 4,312,508 shares of the company's stock worth $169,093,000 after purchasing an additional 1,041,611 shares in the last quarter. Fuller & Thaler Asset Management Inc. raised its stake in shares of Advance Auto Parts by 3.0% in the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 3,552,475 shares of the company's stock valued at $139,293,000 after purchasing an additional 102,921 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of Advance Auto Parts by 0.5% in the first quarter. Dimensional Fund Advisors LP now owns 2,741,701 shares of the company's stock valued at $107,500,000 after purchasing an additional 13,412 shares in the last quarter. Finally, Eminence Capital LP bought a new stake in shares of Advance Auto Parts in the fourth quarter valued at about $87,214,000. Institutional investors and hedge funds own 88.75% of the company's stock.

About Advance Auto Parts

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.