Advance Auto Parts, Inc. (NYSE:AAP) Given Average Rating of "Hold" by Brokerages

Key Points

• Analyst consensus is “Hold”: Of 21 firms covering Advance Auto Parts, 18 recommend holding, two recommend buying and one recommends selling. The average 12-month price target is $50.19, above the reported $44.73 opening price.
• Advance Auto Parts reported quarterly EPS of $1.03, beating the $0.81 consensus estimate, while revenue of $2.0 billion fell slightly short of expectations and declined 0.5% year over year.
• The company declared a quarterly dividend of $0.25 per share, or $1.00 annually, representing a 2.2% yield; institutional investors own approximately 88.7% of the stock.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) has been given an average rating of "Hold" by the twenty-one research firms that are currently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, eighteen have issued a hold recommendation and two have issued a buy recommendation on the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $50.1875.

Several brokerages have weighed in on AAP. JPMorgan Chase & Co. cut their price target on Advance Auto Parts from $65.00 to $55.00 and set a "neutral" rating on the stock in a research report on Friday, August 21st. Truist Financial set a $43.00 price objective on Advance Auto Parts and gave the company a "hold" rating in a report on Thursday, August 20th. Mizuho upped their target price on Advance Auto Parts from $54.00 to $58.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 26th. The Goldman Sachs Group set a $49.00 target price on Advance Auto Parts in a report on Friday, August 21st. Finally, Deutsche Bank Aktiengesellschaft raised shares of Advance Auto Parts to a "buy" rating in a report on Friday, May 22nd.

Advance Auto Parts Stock Up 3.3%

AAP stock opened at $44.73 on Friday. The firm's fifty day simple moving average is $51.60 and its 200-day simple moving average is $54.06. The company has a market capitalization of $2.70 billion, a P/E ratio of 32.65, a price-to-earnings-growth ratio of 0.72 and a beta of 1.01. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.75 and a quick ratio of 0.85. Advance Auto Parts has a 12 month low of $37.89 and a 12 month high of $65.21.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its earnings results on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.22. The firm had revenue of $2 billion during the quarter, compared to analysts' expectations of $2.04 billion. Advance Auto Parts had a net margin of 0.97% and a return on equity of 9.84%. The firm's revenue was down .5% compared to the same quarter last year. During the same quarter last year, the company posted $0.69 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. As a group, equities research analysts forecast that Advance Auto Parts will post 2.98 earnings per share for the current year.

Advance Auto Parts Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.2%. The ex-dividend date is Friday, October 9th. Advance Auto Parts's dividend payout ratio (DPR) is currently 72.99%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its position in shares of Advance Auto Parts by 107.2% during the 1st quarter. Royal Bank of Canada now owns 79,558 shares of the company's stock valued at $3,119,000 after acquiring an additional 41,157 shares during the period. Goldman Sachs Group Inc. raised its holdings in Advance Auto Parts by 327.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company's stock worth $14,230,000 after purchasing an additional 278,066 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Advance Auto Parts by 14.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company's stock worth $7,096,000 after purchasing an additional 23,018 shares in the last quarter. Hsbc Holdings PLC boosted its position in Advance Auto Parts by 3.1% during the second quarter. Hsbc Holdings PLC now owns 6,306 shares of the company's stock worth $293,000 after purchasing an additional 191 shares in the last quarter. Finally, Baird Financial Group Inc. boosted its position in Advance Auto Parts by 2.7% during the second quarter. Baird Financial Group Inc. now owns 56,782 shares of the company's stock worth $2,640,000 after purchasing an additional 1,515 shares in the last quarter. Hedge funds and other institutional investors own 88.70% of the company's stock.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc NYSE: AAP is an automotive aftermarket parts provider serving do-it-yourself customers, professional repair shops and commercial customers. The company sells replacement parts, accessories, maintenance items, batteries, engine components, tools and other products used to maintain and repair cars, trucks and other vehicles.

Advance Auto Parts serves customers through a network of retail stores, distribution centers and online channels. Its operations include the Advance Auto Parts and Carquest brands, with products available through company-operated locations, independently operated Carquest stores and commercial delivery programs for professional customers.

The company's business primarily covers the United States, with additional operations and customer service in Canada and certain U.S.

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