Advance Auto Parts (NYSE:AAP) Stock Rating Lowered by Rothschild & Co Redburn

Key Points

• Rothschild & Co Redburn downgraded Advance Auto Parts to “sell” from “hold” and set a $32 price target, implying approximately 31.45% downside from the current price.
• Analyst sentiment is broadly negative: the stock has an average “Reduce” rating and a $47.61 average target price, with two Buy, sixteen Hold, and four Sell ratings.
• Advance Auto Parts beat quarterly EPS estimates ($1.03 versus $0.81) but reported roughly $2 billion in revenue, down 0.5% year over year; institutional investors own 88.7% of the shares.

Advance Auto Parts (NYSE:AAP - Get Free Report) was downgraded by Rothschild & Co Redburn from a "hold" rating to a "sell" rating in a report released on Monday, MarketBeat.com reports. They currently have a $32.00 price target on the stock. Rothschild & Co Redburn's target price points to a potential downside of 31.45% from the company's current price.

Several other brokerages also recently issued reports on AAP. Guggenheim reiterated a "neutral" rating on shares of Advance Auto Parts in a research note on Friday, August 21st. Citigroup upped their price objective on Advance Auto Parts from $45.00 to $48.00 and gave the company a "neutral" rating in a research report on Friday. Roth Capital set a $48.00 target price on Advance Auto Parts in a report on Friday, August 21st. Wells Fargo & Company decreased their price target on Advance Auto Parts from $60.00 to $50.00 and set an "equal weight" rating for the company in a research note on Friday, August 21st. Finally, JPMorgan Chase & Co. lowered their price target on Advance Auto Parts from $65.00 to $55.00 and set a "neutral" rating on the stock in a report on Friday, August 21st. Two investment analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, Advance Auto Parts has an average rating of "Reduce" and an average target price of $47.61.

Advance Auto Parts Stock Performance

Advance Auto Parts stock opened at $46.68 on Monday. Advance Auto Parts has a twelve month low of $37.89 and a twelve month high of $65.20. The company has a market capitalization of $2.82 billion, a P/E ratio of 34.07, a PEG ratio of 0.76 and a beta of 1.07. The stock's 50 day moving average is $43.47 and its 200 day moving average is $51.53. The company has a quick ratio of 0.85, a current ratio of 1.75 and a debt-to-equity ratio of 1.50.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its quarterly earnings results on Thursday, August 20th. The company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.81 by $0.22. The firm had revenue of $2 billion during the quarter, compared to the consensus estimate of $2.04 billion. Advance Auto Parts had a return on equity of 9.84% and a net margin of 0.97%. The company's revenue was down .5% on a year-over-year basis. During the same period last year, the company earned $0.69 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, equities research analysts predict that Advance Auto Parts will post 2.95 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in Advance Auto Parts in the 2nd quarter worth $581,909,000. Pzena Investment Management LLC acquired a new stake in shares of Advance Auto Parts in the second quarter worth approximately $273,115,000. Maple Rock Capital Partners Inc. increased its position in shares of Advance Auto Parts by 86.5% during the second quarter. Maple Rock Capital Partners Inc. now owns 2,421,040 shares of the company's stock worth $150,637,000 after purchasing an additional 1,122,900 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Advance Auto Parts by 15.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company's stock worth $112,243,000 after purchasing an additional 282,591 shares in the last quarter. Finally, Bank of America Corp DE raised its stake in Advance Auto Parts by 4.5% in the 1st quarter. Bank of America Corp DE now owns 1,056,281 shares of the company's stock valued at $55,719,000 after purchasing an additional 45,696 shares during 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 is a specialty retailer and distributor of automotive aftermarket parts, accessories, and maintenance products. The company serves both do-it-yourself customers and professional repair shops, offering products such as replacement parts, batteries, engine and drivetrain components, filters, fluids, tools, and other automotive supplies.

The company operates through a network of stores, distribution centers, and online channels under the Advance Auto Parts and Carquest brands.