Gabelli Funds LLC Boosts Stake in Advance Auto Parts, Inc. $AAP

Key Points

• Gabelli Funds LLC increased its stake in Advance Auto Parts by 31.3% in the fourth quarter, buying 20,600 additional shares for a total of 86,325 shares valued at about $3.39 million.
• Advance Auto Parts posted a stronger-than-expected quarter, with EPS of $0.77 versus $0.39 expected and revenue of $2.61 billion, while same-store sales rose 3.5% and adjusted operating margin improved to 3.8%.
• The company reaffirmed full-year 2026 guidance and declared a quarterly dividend of $0.25 per share, but management still flagged consumer-spending and geopolitical pressures, keeping the outlook cautious.

Gabelli Funds LLC lifted its holdings in Advance Auto Parts, Inc. (NYSE:AAP - Free Report) by 31.3% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 86,325 shares of the company's stock after purchasing an additional 20,600 shares during the quarter. Gabelli Funds LLC owned 0.14% of Advance Auto Parts worth $3,393,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently modified their holdings of AAP. Royal Bank of Canada raised its stake in shares of Advance Auto Parts by 107.2% in the first quarter. Royal Bank of Canada now owns 79,558 shares of the company's stock worth $3,119,000 after purchasing an additional 41,157 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Advance Auto Parts by 327.7% in the first quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company's stock worth $14,230,000 after purchasing an additional 278,066 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Advance Auto Parts by 14.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company's stock worth $7,096,000 after purchasing an additional 23,018 shares during the last quarter. Hsbc Holdings PLC raised its stake in shares of Advance Auto Parts by 3.1% in the second quarter. Hsbc Holdings PLC now owns 6,306 shares of the company's stock worth $293,000 after purchasing an additional 191 shares during the last quarter. Finally, Baird Financial Group Inc. raised its stake in shares of Advance Auto Parts by 2.7% in the second quarter. Baird Financial Group Inc. now owns 56,782 shares of the company's stock worth $2,640,000 after purchasing an additional 1,515 shares during the last quarter. Hedge funds and other institutional investors own 88.70% of the company's stock.

Key Advance Auto Parts News

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

• Positive Sentiment: Advance Auto Parts posted adjusted EPS of $0.77 versus estimates of $0.39, and revenue of $2.61 billion also topped expectations, signaling better-than-expected execution. BusinessWire earnings release
• Positive Sentiment: Same-store sales rose 3.5%, the strongest quarterly comp growth in five years, helped by mid-single-digit growth in the Pro business and improving DIY demand. WSJ pro-business sales boost
• Positive Sentiment: Margins improved sharply, with adjusted operating margin expanding to 3.8% from the prior year, reinforcing investor confidence that profitability is recovering.
• Positive Sentiment: The company declared a quarterly dividend of $0.25 per share, which can support sentiment by signaling financial stability and capital returns to shareholders.
• Neutral Sentiment: Advance Auto Parts reaffirmed full-year 2026 guidance instead of raising it, suggesting management is confident but still cautious about the pace of recovery.
• Negative Sentiment: Management noted ongoing consumer-spending and geopolitical pressures, and the stock may face some skepticism because the outlook was left below some analyst expectations despite the beat. Benzinga article on consumer spending

Advance Auto Parts Stock Performance

Shares of AAP opened at $58.59 on Friday. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.75 and a quick ratio of 0.87. Advance Auto Parts, Inc. has a one year low of $37.89 and a one year high of $70.00. The firm has a market capitalization of $3.53 billion, a P/E ratio of 80.26, a PEG ratio of 0.90 and a beta of 1.06. The business has a fifty day moving average of $53.84 and a 200 day moving average of $50.37.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.38. Advance Auto Parts had a return on equity of 6.23% and a net margin of 0.51%.The business had revenue of $2.61 billion during the quarter, compared to analyst estimates of $2.57 billion. During the same quarter in the previous year, the company posted $0.40 earnings per share. Advance Auto Parts's revenue for the quarter was up 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. As a group, sell-side analysts anticipate that Advance Auto Parts, Inc. will post 2.77 EPS for the current year.

Advance Auto Parts Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, July 10th. Advance Auto Parts's payout ratio is currently 136.99%.

Analyst Ratings Changes

AAP has been the subject of several recent analyst reports. UBS Group restated a "neutral" rating on shares of Advance Auto Parts in a research note on Monday, February 9th. Citigroup lifted their price objective on Advance Auto Parts from $55.00 to $57.00 and gave the stock a "neutral" rating in a report on Tuesday, May 12th. DA Davidson set a $58.00 price objective on Advance Auto Parts in a report on Tuesday, February 17th. Wells Fargo & Company lifted their price objective on Advance Auto Parts from $40.00 to $50.00 and gave the stock an "equal weight" rating in a report on Wednesday, February 11th. Finally, Roth Mkm reaffirmed a "neutral" rating and issued a $57.00 price objective on shares of Advance Auto Parts in a report on Thursday, February 19th. One equities research analyst has rated the stock with a Buy rating, eighteen have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $53.09.

About Advance Auto Parts

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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