Advance Auto Parts (NYSE:AAP) Stock Price Target Cut by Royal Bank Of Canada

Key Points

• Royal Bank of Canada lowered Advance Auto Parts’ price target from $52 to $49 while maintaining a “sector perform” rating, implying about 7% upside from the prior close.
• Analyst sentiment remains cautious: MarketBeat reports an average “Hold” rating and a consensus price target of $48.75, with several firms recently cutting their targets.
• Advance Auto Parts reported quarterly EPS of $1.03, beating estimates of $0.81, though revenue declined 0.5% year over year to $2 billion; institutional investors own 88.7% of the stock.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its price target dropped by investment analysts at Royal Bank Of Canada from $52.00 to $49.00 in a report issued on Friday, Benzinga reports. The firm presently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective would indicate a potential upside of 7.06% from the company's previous close.

Several other equities research analysts have also issued reports on the company. Guggenheim reaffirmed a "neutral" rating on shares of Advance Auto Parts in a research report on Friday, August 21st. Wells Fargo & Company decreased their price objective on shares of Advance Auto Parts from $60.00 to $50.00 and set an "equal weight" rating on the stock in a research report on Friday, August 21st. Citigroup reissued a "neutral" rating on shares of Advance Auto Parts in a research note on Friday. DA Davidson dropped their target price on shares of Advance Auto Parts from $58.00 to $48.00 and set a "neutral" rating for the company in a report on Friday, August 21st. Finally, UBS Group decreased their target price on Advance Auto Parts from $65.00 to $47.00 and set a "neutral" rating for the company in a research report on Friday, August 21st. Two equities research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Advance Auto Parts currently has an average rating of "Hold" and an average target price of $48.75.

Advance Auto Parts Price Performance

Shares of Advance Auto Parts stock traded down $0.92 on Friday, reaching $45.77. 62,586 shares of the stock were exchanged, compared to its average volume of 1,855,685. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.85 and a current ratio of 1.75. Advance Auto Parts has a one year low of $37.89 and a one year high of $65.20. The firm has a market cap of $2.76 billion, a PE ratio of 33.56, a P/E/G ratio of 0.72 and a beta of 1.07. The firm's 50 day moving average is $43.61 and its 200-day moving average is $52.09.

Advance Auto Parts (NYSE:AAP - Get Free Report) last announced its quarterly earnings results on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.81 by $0.22. Advance Auto Parts had a net margin of 0.97% and a return on equity of 9.84%. The firm had revenue of $2 billion during the quarter, compared to analysts' expectations of $2.04 billion. During the same period in the prior year, the company posted $0.69 EPS. The company's revenue was down .5% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. As a group, analysts anticipate that Advance Auto Parts will post 2.97 EPS for the current fiscal year.

Hedge Funds Weigh In On Advance Auto Parts

Several hedge funds have recently made changes to their positions in the company. PNC Financial Services Group Inc. grew its stake in shares of Advance Auto Parts by 9.9% during the 1st quarter. PNC Financial Services Group Inc. now owns 2,224 shares of the company's stock worth $117,000 after purchasing an additional 200 shares during the period. Hsbc Holdings PLC grew its stake in shares of Advance Auto Parts by 4.7% in the 2nd quarter. Hsbc Holdings PLC now owns 7,879 shares of the company's stock valued at $490,000 after purchasing an additional 355 shares during the last quarter. Allworth Financial LP acquired a new stake in shares of Advance Auto Parts during the 2nd quarter valued at approximately $25,000. State of Wyoming purchased a new position in shares of Advance Auto Parts during the second quarter valued at approximately $34,000. Finally, Blue Trust Inc. boosted its holdings in Advance Auto Parts by 29.8% in the first quarter. Blue Trust Inc. now owns 3,729 shares of the company's stock valued at $197,000 after acquiring an additional 856 shares during the last quarter. 88.70% of the stock is owned by institutional investors and hedge funds.

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.

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