Advance Auto Parts, Inc. (NYSE:AAP) Stock Has Average Target Price of $47.61

Key Points

• Analyst sentiment is mostly cautious: Twenty-one analysts give Advance Auto Parts an average “Reduce” rating, including 16 holds, three sells and two buys. The average 12-month price target is $47.61.
• The stock opened at $45.04, below its 200-day moving average of $51.59, and has traded between $37.89 and $65.20 over the past year. Several major firms recently cut their price targets to roughly $48–$55.
• Advance Auto Parts exceeded quarterly EPS estimates, reporting $1.03 versus the $0.81 consensus, though revenue declined 0.5% year over year to $2 billion. The company pays a $1.00 annualized dividend, yielding about 2.2%, and institutional investors own 88.7% of its shares.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) has received an average recommendation of "Reduce" from the twenty-one ratings firms that are currently covering the firm, Marketbeat reports. Three research analysts have rated the stock with a sell recommendation, sixteen have assigned a hold recommendation and two have issued a buy recommendation on the company. The average 12-month price target among brokers that have covered the stock in the last year is $47.61.

Several research analysts have weighed in on the company. JPMorgan Chase & Co. dropped their target price 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. Roth Capital set a $48.00 price target on shares of Advance Auto Parts in a research note on Friday, August 21st. Wells Fargo & Company decreased their price target on shares of Advance Auto Parts from $60.00 to $50.00 and set an "equal weight" rating for the company in a research report on Friday, August 21st. The Goldman Sachs Group set a $49.00 price target on shares of Advance Auto Parts in a research report on Friday, August 21st. Finally, Barclays dropped their price target on shares of Advance Auto Parts from $59.00 to $50.00 and set an "equal weight" rating for the company in a research report on Friday, August 21st.

Advance Auto Parts Stock Performance

Shares of Advance Auto Parts stock opened at $45.04 on Monday. The business has a 50 day moving average price of $42.86 and a 200-day moving average price of $51.59. 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 company has a market cap of $2.72 billion, a PE ratio of 32.88, a price-to-earnings-growth ratio of 0.87 and a beta of 1.02. Advance Auto Parts has a 52 week low of $37.89 and a 52 week high of $65.20.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its quarterly earnings data on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 company had revenue of $2 billion for the quarter, compared to the consensus estimate of $2.04 billion. During the same quarter last year, the firm posted $0.69 earnings per share. The firm's revenue was down .5% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. Equities analysts anticipate that Advance Auto Parts will post 2.92 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Friday, October 9th were paid a $0.25 dividend. The ex-dividend date was Friday, October 9th. This represents a $1.00 annualized dividend and a dividend yield of 2.2%. Advance Auto Parts's dividend payout ratio is 72.99%.

Institutional Investors Weigh In On Advance Auto Parts

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 about $581,909,000. Pzena Investment Management LLC acquired a new stake in shares of Advance Auto Parts in the 2nd quarter worth approximately $273,115,000. Maple Rock Capital Partners Inc. lifted its position in shares of Advance Auto Parts by 86.5% in the second quarter. Maple Rock Capital Partners Inc. now owns 2,421,040 shares of the company's stock worth $150,637,000 after buying an additional 1,122,900 shares during the last quarter. Dimensional Fund Advisors LP increased its position in Advance Auto Parts by 15.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company's stock valued at $112,243,000 after acquiring an additional 282,591 shares in the last quarter. Finally, Bank of America Corp DE bought a new position in shares of Advance Auto Parts in the second quarter valued at $59,626,000. 88.70% of the stock is owned by hedge funds and other institutional investors.

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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