Advance Auto Parts, Inc. $AAP Stock Bought by Pzena Investment Management LLC

Key Points

• Pzena Investment Management increased its Advance Auto Parts stake by 13.6% in the third quarter, adding 596,952 shares to hold nearly 5 million shares, or 8.26% of the company.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and an average price target of $47.61, with 16 analysts rating it Hold, two Buy, and three Sell.
• Advance Auto Parts beat quarterly EPS expectations ($1.03 versus $0.81), but revenue was slightly below estimates at $2 billion and down 0.5% year over year. It also pays a quarterly dividend of $0.25 per share.

Pzena Investment Management LLC grew its stake in Advance Auto Parts, Inc. (NYSE:AAP - Free Report) by 13.6% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 4,986,453 shares of the company's stock after buying an additional 596,952 shares during the period. Pzena Investment Management LLC owned 8.26% of Advance Auto Parts worth $194,023,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently made changes to their positions in AAP. BlackRock Inc. bought a new stake in Advance Auto Parts in the second quarter valued at approximately $581,909,000. Maple Rock Capital Partners Inc. increased its position in Advance Auto Parts by 86.5% during the 2nd quarter. Maple Rock Capital Partners Inc. now owns 2,421,040 shares of the company's stock valued at $150,637,000 after purchasing an additional 1,122,900 shares during the period. Dimensional Fund Advisors LP increased its position in Advance Auto Parts by 15.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company's stock valued at $112,243,000 after purchasing an additional 282,591 shares during the period. Bank of America Corp DE bought a new position in Advance Auto Parts during the 2nd quarter worth approximately $59,626,000. Finally, Gamco Investors INC. ET AL raised its holdings in Advance Auto Parts by 10.7% during the 1st quarter. Gamco Investors INC. ET AL now owns 760,222 shares of the company's stock worth $40,102,000 after purchasing an additional 73,565 shares during the last quarter. 88.70% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. JPMorgan Chase & Co. dropped their price target on shares of 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. Weiss Ratings upgraded shares of Advance Auto Parts from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, October 27th. DA Davidson decreased their price objective on shares of Advance Auto Parts from $58.00 to $48.00 and set a "neutral" rating for the company in a research report on Friday, August 21st. Morgan Stanley lowered their target price on shares of Advance Auto Parts from $65.00 to $52.00 and set an "equal weight" rating for the company in a research note on Friday, August 21st. Finally, Wells Fargo & Company dropped their target price on shares of Advance Auto Parts from $60.00 to $50.00 and set an "equal weight" rating on the stock in a report on Friday, August 21st. Two equities research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Advance Auto Parts currently has a consensus rating of "Reduce" and an average price target of $47.61.

Advance Auto Parts Trading Up 6.5%

NYSE AAP opened at $50.66 on Thursday. The stock has a market capitalization of $3.06 billion, a P/E ratio of 13.29, a P/E/G ratio of 0.92 and a beta of 1.02. The business has a 50 day simple moving average of $43.18 and a 200 day simple moving average of $51.68. 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, Inc. has a one year low of $37.89 and a one year high of $65.20.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued 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. The firm had revenue of $2 billion for the quarter, compared to analyst estimates of $2.04 billion. Advance Auto Parts had a return on equity of 9.84% and a net margin of 0.97%. The company's revenue was down .5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.69 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. Research analysts expect that Advance Auto Parts, Inc. will post 2.92 earnings per share for the current year.

Advance Auto Parts Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Friday, October 9th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Friday, October 9th. Advance Auto Parts's payout ratio is presently 72.99%.

Advance Auto Parts 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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