Federated Hermes Inc. Boosts Stake in Advance Auto Parts, Inc. (NYSE:AAP)

Key Points

• Federated Hermes Inc. significantly increased its ownership in Advance Auto Parts by acquiring over 1 million shares, raising its stake by 302.5% to hold a total of 1,358,764 shares worth approximately $53.3 million.
• Advance Auto Parts reported a loss of $0.22 EPS for the last quarter, outperforming expectations, but its revenue dropped 24.2% compared to the same period last year.
• The company declared a quarterly dividend of $0.25 per share, reflecting a 1.79% dividend yield, following an ex-dividend date of July 11th.

Federated Hermes Inc. lifted its holdings in shares of Advance Auto Parts, Inc. (NYSE:AAP - Free Report) by 302.5% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 1,358,764 shares of the company's stock after acquiring an additional 1,021,181 shares during the quarter. Federated Hermes Inc. owned approximately 2.27% of Advance Auto Parts worth $53,277,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in AAP. Hexagon Capital Partners LLC lifted its position in shares of Advance Auto Parts by 189.0% during the 1st quarter. Hexagon Capital Partners LLC now owns 711 shares of the company's stock valued at $28,000 after acquiring an additional 465 shares during the period. Advisory Services Network LLC bought a new stake in shares of Advance Auto Parts during the 4th quarter valued at $46,000. Financial Management Professionals Inc. bought a new stake in shares of Advance Auto Parts during the 1st quarter valued at $49,000. Exchange Traded Concepts LLC lifted its position in shares of Advance Auto Parts by 1,258.8% during the 1st quarter. Exchange Traded Concepts LLC now owns 2,310 shares of the company's stock valued at $91,000 after acquiring an additional 2,140 shares during the period. Finally, Blue Trust Inc. lifted its position in shares of Advance Auto Parts by 69.8% during the 1st quarter. Blue Trust Inc. now owns 2,842 shares of the company's stock valued at $111,000 after acquiring an additional 1,168 shares during the period. 88.75% of the stock is currently owned by institutional investors.

Insider Transactions at Advance Auto Parts

In other Advance Auto Parts news, SVP Jason Hand sold 948 shares of the business's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $48.52, for a total transaction of $45,996.96. Following the completion of the sale, the senior vice president owned 9,876 shares of the company's stock, valued at approximately $479,183.52. The trade was a 8.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 0.67% of the company's stock.

Advance Auto Parts Stock Performance

Shares of AAP traded up $0.71 during trading hours on Monday, hitting $53.42. The stock had a trading volume of 785,948 shares, compared to its average volume of 2,697,681. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.27 and a quick ratio of 0.49. Advance Auto Parts, Inc. has a 12 month low of $28.89 and a 12 month high of $70.00. The firm has a market capitalization of $3.20 billion, a PE ratio of -9.09 and a beta of 1.05. The stock has a fifty day moving average price of $53.61 and a 200 day moving average price of $43.89.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its quarterly earnings results on Thursday, May 22nd. The company reported ($0.22) earnings per share for the quarter, topping the consensus estimate of ($0.81) by $0.59. Advance Auto Parts had a negative net margin of 3.74% and a negative return on equity of 1.76%. The business had revenue of $2.58 billion for the quarter, compared to the consensus estimate of $2.51 billion. During the same period last year, the firm earned $0.67 earnings per share. The company's quarterly revenue was down 24.2% on a year-over-year basis. Analysts anticipate that Advance Auto Parts, Inc. will post -0.46 EPS for the current year.

Advance Auto Parts Dividend Announcement

The business 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. This represents a $1.00 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Friday, July 11th. Advance Auto Parts's payout ratio is currently -17.04%.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Cowen restated a "hold" rating on shares of Advance Auto Parts in a research report on Friday, May 23rd. BMO Capital Markets reissued a "market perform" rating and issued a $50.00 price target (up previously from $40.00) on shares of Advance Auto Parts in a research note on Friday, May 23rd. Roth Capital set a $50.00 price target on Advance Auto Parts and gave the company a "neutral" rating in a research note on Wednesday, May 28th. Raymond James Financial increased their price target on Advance Auto Parts to $49.17 and gave the company a "hold" rating in a research note on Monday, May 26th. Finally, Mizuho increased their price target on Advance Auto Parts from $38.00 to $44.00 and gave the company a "neutral" rating in a research note on Thursday, July 3rd. Three 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, Advance Auto Parts has an average rating of "Hold" and a consensus target price of $48.53.

Advance Auto Parts 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.