Advance Auto Parts (NYSE:AAP) Now Covered by Bank of America

Key Points

• Bank of America initiated coverage of Advance Auto Parts with an “underperform” rating and a $42 price target, implying approximately 11% downside from the stock’s reported $47.21 price.
• Analyst sentiment is broadly negative: the stock has a consensus “Reduce” rating, with 16 Holds and four Sells, and an average price target of $47.61.
• Advance Auto Parts beat quarterly earnings expectations with $1.03 in EPS versus $0.81 forecast, but revenue fell 0.5% year over year and the company reported a low 0.97% net margin.

Bank of America initiated coverage on shares of Advance Auto Parts (NYSE:AAP - Get Free Report) in a research note issued to investors on Monday. The firm set an "underperform" rating and a $42.00 price target on the stock. Bank of America's price objective suggests a potential downside of 11.04% from the company's current price.

Several other analysts also recently issued reports on AAP. Evercore set a $45.00 price objective on Advance Auto Parts in a report on Tuesday, October 6th. The Goldman Sachs Group set a $49.00 price target on shares of Advance Auto Parts in a report on Friday, August 21st. Citigroup increased their target price on Advance Auto Parts from $45.00 to $48.00 and gave the company a "neutral" rating in a research note on Friday. Wells Fargo & Company decreased their price objective on Advance Auto Parts from $60.00 to $50.00 and set an "equal weight" rating for the company in a report on Friday, August 21st. Finally, Weiss Ratings downgraded Advance Auto Parts from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, October 9th. Two research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average price target of $47.61.

Advance Auto Parts Trading Up 0.6%

Shares of NYSE:AAP traded up $0.29 during midday trading on Monday, reaching $47.21. The company's stock had a trading volume of 184,706 shares, compared to its average volume of 1,854,809. The company has a quick ratio of 0.85, a current ratio of 1.75 and a debt-to-equity ratio of 1.50. The firm has a market cap of $2.85 billion, a price-to-earnings ratio of 34.46, a price-to-earnings-growth ratio of 0.76 and a beta of 1.07. Advance Auto Parts has a 1 year low of $37.89 and a 1 year high of $65.20. The business has a 50 day moving average price of $43.42 and a 200 day moving average price of $52.05.

Advance Auto Parts (NYSE:AAP - Get Free Report) last announced its 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 business had revenue of $2 billion during the quarter, compared to the consensus estimate of $2.04 billion. Advance Auto Parts had a net margin of 0.97% and a return on equity of 9.84%. The business's quarterly revenue was down .5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.69 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. Research analysts forecast that Advance Auto Parts will post 2.95 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Studio Investment Management LLC boosted its stake in shares of Advance Auto Parts by 37.0% during the 3rd quarter. Studio Investment Management LLC now owns 6,272 shares of the company's stock valued at $244,000 after purchasing an additional 1,693 shares in the last quarter. Net Worth Advisory Group boosted its position in shares of Advance Auto Parts by 25.8% during the third quarter. Net Worth Advisory Group now owns 6,243 shares of the company's stock valued at $242,000 after buying an additional 1,280 shares during the last quarter. Fearless Solutions LLC dba Best Invest lifted its position in Advance Auto Parts by 18.9% during the third quarter. Fearless Solutions LLC dba Best Invest now owns 10,425 shares of the company's stock valued at $406,000 after purchasing an additional 1,660 shares during the period. Roberts Wealth Advisors LLC increased its holdings in Advance Auto Parts by 13.0% during the third quarter. Roberts Wealth Advisors LLC now owns 72,075 shares of the company's stock valued at $2,804,000 after buying an additional 8,297 shares during the last quarter. Finally, Parrish Capital LLC increased its stake in shares of Advance Auto Parts by 21.6% in the 3rd quarter. Parrish Capital LLC now owns 23,995 shares of the company's stock worth $934,000 after purchasing an additional 4,263 shares in the last quarter. 88.70% of the stock is currently owned by hedge funds and other institutional investors.

About Advance Auto Parts

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.

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