Advance Auto Parts, Inc. (NYSE:AAP) Stock Rated "Hold" by Sell-Side Brokerages

Key Points

• Advance Auto Parts has a consensus “Hold” rating from 20 analysts: 17 holds, two buys and one sell. The average 12-month price target is $48.94, above the stock’s reported $41.16 opening price.
• The company exceeded quarterly earnings expectations, reporting $1.03 in EPS versus the $0.81 consensus estimate, although revenue of $2.0 billion fell short of expectations and declined slightly year over year.
• Advance Auto Parts declared a quarterly dividend of $0.25 per share, equating to a $1.00 annualized payout and a 2.4% yield; institutional investors own approximately 88.7% of the stock.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) has been given a consensus rating of "Hold" by the twenty research firms that are covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, seventeen have issued a hold recommendation and two have issued a buy recommendation on the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $48.94.

A number of research firms have commented on AAP. JPMorgan Chase & Co. cut their price objective on shares of Advance Auto Parts from $65.00 to $55.00 and set a "neutral" rating for the company in a report on Friday, August 21st. The Goldman Sachs Group set a $49.00 target price on Advance Auto Parts in a report on Friday, August 21st. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Advance Auto Parts in a report on Wednesday, August 26th. Wells Fargo & Company reduced their price objective on 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. Finally, Truist Financial set a $43.00 price objective on Advance Auto Parts and gave the stock a "hold" rating in a research report on Thursday, August 20th.

Advance Auto Parts Price Performance

NYSE:AAP opened at $41.16 on Thursday. The stock has a 50 day moving average of $46.49 and a two-hundred day moving average of $52.72. Advance Auto Parts has a 12 month low of $37.89 and a 12 month high of $65.20. The firm has a market cap of $2.49 billion, a P/E ratio of 30.04, a price-to-earnings-growth ratio of 0.66 and a beta of 1.07. The company has a current ratio of 1.75, a quick ratio of 0.85 and a debt-to-equity ratio of 1.50.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released 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. Advance Auto Parts had a return on equity of 9.84% and a net margin of 0.97%.The business had revenue of $2 billion for the quarter, compared to the consensus estimate of $2.04 billion. During the same quarter last year, the business posted $0.69 earnings per share. The business's quarterly 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. On average, analysts expect that Advance Auto Parts will post 2.99 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The company also recently disclosed 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 2.4%. The ex-dividend date is Friday, October 9th. Advance Auto Parts's dividend payout ratio (DPR) is presently 72.99%.

Hedge Funds Weigh In On Advance Auto Parts

A number of institutional investors have recently bought and sold shares of AAP. Allworth Financial LP purchased a new stake in shares of Advance Auto Parts in the 2nd quarter valued at approximately $25,000. State of Wyoming purchased a new stake in shares of Advance Auto Parts during the 2nd quarter valued at approximately $34,000. PNC Financial Services Group Inc. lifted its holdings in Advance Auto Parts by 9.9% in the first quarter. PNC Financial Services Group Inc. now owns 2,224 shares of the company's stock valued at $117,000 after acquiring an additional 200 shares during the last quarter. Nykredit A S acquired a new position in Advance Auto Parts in the second quarter valued at approximately $155,000. Finally, Blue Trust Inc. grew its position in Advance Auto Parts by 29.8% in the first quarter. Blue Trust Inc. now owns 3,729 shares of the company's stock worth $197,000 after acquiring an additional 856 shares during the period. 88.70% of the stock is owned by hedge funds and other institutional investors.

About Advance Auto Parts

Advance Auto Parts, Inc is an automotive aftermarket parts provider that sells replacement parts, accessories, maintenance products and equipment for cars, trucks and other vehicles. The company serves do-it-yourself customers as well as professional repair shops and commercial customers.

Its product offerings include batteries, brakes, filters, engine and drivetrain components, electrical parts, tools, fluids, chemicals and related accessories. Advance Auto Parts serves customers through a network of stores, distribution facilities and digital ordering channels, with services such as in-store pickup, delivery and commercial parts delivery supporting its retail and professional businesses.

Founded in 1929, the company operates primarily in the United States and also has a presence in Canada and other North American markets.

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