Q2 EPS Estimate for Advance Auto Parts Raised by Analyst

Key Points

• DA Davidson increased its Q2 2025 earnings per share estimate for Advance Auto Parts from $0.47 to $0.56, maintaining a "Neutral" rating and a price target of $65.00.
• Advance Auto Parts recently reported a quarterly revenue of $2.58 billion, surpassing consensus estimates, although the company still witnessed a 24.2% year-over-year decline in revenue.
• Institutional investors control 88.75% of Advance Auto Parts shares, with recent purchases indicating significant interest, despite mixed ratings from research analysts.

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Equities research analysts at DA Davidson raised their Q2 2025 earnings estimates for shares of Advance Auto Parts in a note issued to investors on Friday, July 25th. DA Davidson analyst M. Baker now expects that the company will post earnings of $0.56 per share for the quarter, up from their previous forecast of $0.47. DA Davidson currently has a "Neutral" rating and a $65.00 target price on the stock. The consensus estimate for Advance Auto Parts' current full-year earnings is ($0.46) per share. DA Davidson also issued estimates for Advance Auto Parts' FY2025 earnings at $2.14 EPS and FY2026 earnings at $4.04 EPS.

A number of other equities analysts also recently weighed in on the stock. Redburn Partners upgraded shares of Advance Auto Parts from a "sell" rating to a "neutral" rating and set a $45.00 target price on the stock in a report on Tuesday, June 3rd. Wall Street Zen downgraded shares of Advance Auto Parts from a "hold" rating to a "sell" rating in a report on Sunday, June 29th. Bank of America increased their price objective on shares of Advance Auto Parts from $33.00 to $39.00 and gave the company an "underperform" rating in a research report on Friday, May 23rd. Redburn Atlantic raised shares of Advance Auto Parts from a "sell" rating to a "neutral" rating and increased their price objective for the company from $28.00 to $45.00 in a research report on Tuesday, June 3rd. Finally, Citigroup increased their price objective on shares of Advance Auto Parts from $49.00 to $60.00 and gave the company a "neutral" rating in a research report on Friday, July 25th. Three equities research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and one has assigned a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $48.53.

Advance Auto Parts Stock Down 3.0%

AAP traded down $1.67 during trading on Monday, reaching $54.16. 315,894 shares of the stock were exchanged, compared to its average volume of 2,704,787. The stock has a market cap of $3.25 billion, a P/E ratio of -9.28 and a beta of 1.04. Advance Auto Parts has a twelve month low of $28.89 and a twelve month high of $70.00. The stock's 50 day moving average price is $52.96 and its two-hundred day moving average price is $43.71. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.49 and a current ratio of 1.27.

Advance Auto Parts (NYSE:AAP - Get Free Report) last announced its quarterly earnings results on Thursday, May 22nd. The company reported ($0.22) earnings per share for the quarter, beating analysts' consensus estimates of ($0.81) by $0.59. The firm had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.51 billion. Advance Auto Parts had a negative net margin of 3.74% and a negative return on equity of 1.76%. The business's revenue was down 24.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.67 earnings per share.

Advance Auto Parts Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 25th. Shareholders of record on Friday, July 11th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, July 11th. This represents a $1.00 annualized dividend and a yield of 1.85%. Advance Auto Parts's payout ratio is -17.04%.

Insider Buying and Selling at Advance Auto Parts

In related news, SVP Jason Hand sold 948 shares of the business's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $48.52, for a total transaction of $45,996.96. Following the transaction, the senior vice president owned 9,876 shares in the company, valued at $479,183.52. The trade was a 8.76% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.35% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD lifted its position in shares of Advance Auto Parts by 34.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,685,541 shares of the company's stock valued at $316,160,000 after acquiring an additional 1,706,328 shares during the period. Pzena Investment Management LLC lifted its position in shares of Advance Auto Parts by 1.9% during the 2nd quarter. Pzena Investment Management LLC now owns 4,394,964 shares of the company's stock valued at $204,322,000 after acquiring an additional 82,456 shares during the period. Fuller & Thaler Asset Management Inc. increased its stake in Advance Auto Parts by 3.0% during the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 3,552,475 shares of the company's stock valued at $139,293,000 after purchasing an additional 102,921 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in Advance Auto Parts by 0.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,741,701 shares of the company's stock valued at $107,500,000 after purchasing an additional 13,412 shares in the last quarter. Finally, Eminence Capital LP bought a new stake in Advance Auto Parts during the 4th quarter valued at $87,214,000. Institutional investors and hedge funds own 88.75% of the company's stock.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts.