Investors Buy Large Volume of Advance Auto Parts Call Options (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Stock traders bought 21,626 call options on the stock. This represents an increase of 177% compared to the typical daily volume of 7,797 call options.

Insider Buying and Selling at Advance Auto Parts

In related news, Director Eugene I. Lee, Jr. acquired 14,640 shares of the firm's stock in a transaction on Thursday, March 6th. The shares were purchased at an average cost of $34.15 per share, for a total transaction of $499,956.00. Following the completion of the acquisition, the director now directly owns 34,070 shares in the company, valued at approximately $1,163,490.50. This trade represents a 75.35% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Shane M. Okelly purchased 1,500 shares of the firm's stock in a transaction that occurred on Tuesday, March 11th. The stock was acquired at an average price of $36.79 per share, for a total transaction of $55,185.00. Following the completion of the purchase, the chief executive officer now directly owns 183,121 shares of the company's stock, valued at $6,737,021.59. This represents a 0.83% increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 0.35% of the company's stock.

Institutional Trading of Advance Auto Parts

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hexagon Capital Partners LLC increased its position in Advance Auto Parts by 189.0% during 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 during the period. Allworth Financial LP increased its position in Advance Auto Parts by 1,543.4% during 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 during the period. Vision Financial Markets LLC acquired a new stake in Advance Auto Parts during the 4th quarter valued at approximately $42,000. Advisory Services Network LLC acquired a new stake in Advance Auto Parts during the 4th quarter valued at approximately $46,000. Finally, Financial Management Professionals Inc. acquired a new stake in Advance Auto Parts during the 1st quarter valued at approximately $49,000. Institutional investors and hedge funds own 88.75% of the company's stock.

Advance Auto Parts Trading Down 8.2%

NYSE AAP traded down $4.34 during trading hours on Thursday, reaching $48.37. The company's stock had a trading volume of 5,027,134 shares, compared to its average volume of 2,459,367. The firm has a fifty day simple moving average of $35.60 and a 200-day simple moving average of $40.67. The stock has a market cap of $2.89 billion, a P/E ratio of 66.26, a P/E/G ratio of 1.98 and a beta of 0.93. Advance Auto Parts has a 52 week low of $28.89 and a 52 week high of $71.09. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.34 and a quick ratio of 0.62.

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

Advance Auto Parts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 25th. Shareholders of record on Friday, July 11th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 2.07%. The ex-dividend date of this dividend is Friday, July 11th. Advance Auto Parts's dividend payout ratio is presently -17.04%.

Wall Street Analyst Weigh In

Several equities analysts recently commented on AAP shares. The Goldman Sachs Group restated a "neutral" rating and issued a $48.00 price target (up from $43.00) on shares of Advance Auto Parts in a research note on Thursday, May 22nd. Citigroup reduced their price objective 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. UBS Group reiterated a "neutral" rating and set a $50.00 price objective (up from $36.00) on shares of Advance Auto Parts in a research note on Friday, May 23rd. Roth Capital set a $50.00 price objective on shares of Advance Auto Parts and gave the stock a "neutral" rating in a research note on Wednesday. Finally, Evercore ISI increased their price objective on shares of Advance Auto Parts from $35.00 to $45.00 and gave the stock an "in-line" rating in a research note on Friday, May 23rd. One investment analyst has rated the stock with a sell rating, nineteen have given a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $46.11.

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.