BlackRock Inc. Buys New Shares in Advance Auto Parts, Inc. $AAP

Key Points

• BlackRock acquired 9.35 million shares of Advance Auto Parts in the second quarter, worth approximately $581.9 million and representing about 15.49% of the company. Institutional investors collectively own 88.7% of AAP.
• Advance Auto Parts reported quarterly EPS of $1.03, beating the $0.81 consensus, but revenue of roughly $2.0 billion fell short of expectations and declined year over year. The company maintained FY2026 sales guidance and expects adjusted EPS of $2.60–$3.30.
• The company declared a quarterly dividend of $0.25 per share, equivalent to a $1.00 annualized payout and an approximately 2.3% yield. Analysts remain cautious, with a consensus “Hold” rating and a $50.80 price target amid concerns about weak DIY demand and turnaround execution.

BlackRock Inc. bought a new position in shares of Advance Auto Parts, Inc. (NYSE:AAP - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund bought 9,352,439 shares of the company's stock, valued at approximately $581,909,000. BlackRock Inc. owned approximately 15.49% of Advance Auto Parts at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of AAP. Deutsche Bank AG purchased a new stake in shares of Advance Auto Parts during the second quarter worth approximately $3,907,000. Pursue Wealth Partners LLC purchased a new position in Advance Auto Parts in the second quarter worth approximately $1,462,000. Bank of New York Mellon Corp purchased a new stake in shares of Advance Auto Parts in the 2nd quarter valued at approximately $29,860,000. State of Wyoming acquired a new stake in shares of Advance Auto Parts in the 2nd quarter valued at $34,000. Finally, Wedge Capital Management L L P NC raised its holdings in shares of Advance Auto Parts by 15.2% in the 2nd quarter. Wedge Capital Management L L P NC now owns 38,513 shares of the company's stock valued at $2,396,000 after purchasing an additional 5,096 shares in the last quarter. Hedge funds and other institutional investors own 88.70% of the company's stock.

Advance Auto Parts Stock Up 0.6%

AAP opened at $42.85 on Monday. The stock has a market capitalization of $2.59 billion, a P/E ratio of 31.28, a price-to-earnings-growth ratio of 0.69 and a beta of 1.03. Advance Auto Parts, Inc. has a one year low of $37.89 and a one year high of $65.21. The business's 50-day simple moving average is $56.58 and its 200-day simple moving average is $55.39. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.85 and a current ratio of 1.75.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its quarterly earnings data on Thursday, August 20th. The company reported $1.03 earnings per share for the quarter, beating analysts' consensus estimates 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 company had revenue of $2 billion during the quarter, compared to analysts' expectations of $2.04 billion. During the same quarter in the previous year, the business earned $0.69 earnings per share. The firm's revenue for the quarter was down .5% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. Analysts anticipate that Advance Auto Parts, Inc. will post 2.97 EPS for the current year.

Advance Auto Parts Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 9th will be paid a $0.25 dividend. The ex-dividend date is Friday, October 9th. This represents a $1.00 dividend on an annualized basis and a yield of 2.3%. Advance Auto Parts's payout ratio is currently 72.99%.

More Advance Auto Parts News

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: Adjusted earnings beat expectations. Advance Auto Parts reported second-quarter adjusted EPS of $1.03, above the $0.81 consensus estimate and up from $0.69 a year earlier. The company also raised its FY2026 adjusted EPS guidance to $2.60–$3.30, while maintaining its sales outlook. Advance Auto Parts Analysts Cut Their Forecasts After Q2 Results
• Positive Sentiment: Margins and balance-sheet metrics improved. A $26 million tariff refund helped support quarterly margins, while gross margin expanded to 46.2% from 43.5% a year earlier. Advance also reduced net leverage to 2.1x from 2.4x and repaid approximately $30 million of debt. Advance Auto Parts Rebounds After Tariff Refund Boosts Q2 Margins
• Neutral Sentiment: Analyst targets remain mixed. JPMorgan lowered its target to $55, Morgan Stanley and RBC each moved to $52, and Citigroup cut its target to $45; all maintained neutral or equivalent ratings. These targets imply upside from recent levels, but Goldman Sachs reduced its target to $40 and assigned a Sell rating. Benzinga analyst updates
• Neutral Sentiment: The dividend provides shareholder support. Advance Auto Parts declared a quarterly dividend of $0.25 per share, with payment scheduled for October 23 to shareholders of record on October 9. The dividend yield is approximately 2.4%.
• Negative Sentiment: Sales momentum remains the main concern. Second-quarter revenue of approximately $2.0 billion missed estimates near $2.04 billion, while comparable-store sales declined 0.5%. Weak demand from cost-conscious, lower-income do-it-yourself customers and a volatile spending environment raised concerns about the pace of sales acceleration and required reinvestment. Advance Auto Parts Posts Disappointing Q2 Comparable Sales
• Negative Sentiment: Broad target reductions underscore execution risk. Goldman Sachs’s Sell rating and Bank of America’s reiterated Sell/Underperform view highlight concerns over weak DIY demand and the company’s ability to execute its turnaround, even after the earnings beat. Bank of America Reiterates Sell Rating

Analyst Ratings Changes

A number of brokerages recently commented on AAP. Weiss Ratings upgraded shares of Advance Auto Parts from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, May 29th. Barclays lowered their price objective on Advance Auto Parts from $59.00 to $50.00 and set an "equal weight" rating for the company in a research report on Friday. UBS Group dropped their price objective on Advance Auto Parts from $65.00 to $47.00 and set a "neutral" rating on the stock in a report on Friday. Evercore set a $65.00 target price on Advance Auto Parts in a research report on Tuesday, August 4th. Finally, Morgan Stanley decreased their target price on Advance Auto Parts from $65.00 to $52.00 and set an "equal weight" rating for the company in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $50.80.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc NYSE: AAP is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company's product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.

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