Invenomic Capital Management LP Increases Stake in Advance Auto Parts, Inc. $AAP

Key Points

• Invenomic Capital Management LP increased its stake in Advance Auto Parts by 281.2%, holding 600,895 shares valued at approximately $23.56 million, making it the fund's 21st largest position.
• Advance Auto Parts reported a quarterly EPS of $0.69, exceeding analysts' expectations of $0.59, despite a 7.7% decline in year-over-year revenue.
• The company announced a quarterly dividend of $0.25 per share, with an annualized yield of 1.7%, set to be paid on October 24th.

Invenomic Capital Management LP raised its position in shares of Advance Auto Parts, Inc. (NYSE:AAP - Free Report) by 281.2% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 600,895 shares of the company's stock after acquiring an additional 443,251 shares during the quarter. Advance Auto Parts makes up about 1.2% of Invenomic Capital Management LP's holdings, making the stock its 21st largest holding. Invenomic Capital Management LP owned 1.00% of Advance Auto Parts worth $23,561,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the company. Pzena Investment Management LLC raised its holdings in shares of Advance Auto Parts by 31.8% during the first quarter. Pzena Investment Management LLC now owns 4,312,508 shares of the company's stock valued at $169,093,000 after acquiring an additional 1,041,611 shares during the last quarter. Fuller & Thaler Asset Management Inc. raised its holdings in shares of Advance Auto Parts by 3.0% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 3,552,475 shares of the company's stock valued at $139,293,000 after acquiring an additional 102,921 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Advance Auto Parts by 0.5% during the first quarter. Dimensional Fund Advisors LP now owns 2,741,701 shares of the company's stock valued at $107,500,000 after acquiring an additional 13,412 shares during the last quarter. Federated Hermes Inc. raised its holdings in shares of Advance Auto Parts by 302.5% during the first quarter. Federated Hermes Inc. now owns 1,358,764 shares of the company's stock valued at $53,277,000 after acquiring an additional 1,021,181 shares during the last quarter. Finally, Estuary Capital Management LP raised its holdings in shares of Advance Auto Parts by 31.7% during the first quarter. Estuary Capital Management LP now owns 1,258,270 shares of the company's stock valued at $49,337,000 after acquiring an additional 303,153 shares during the last quarter. Institutional investors and hedge funds own 88.70% of the company's stock.

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 that occurred on Friday, June 20th. The stock was sold at an average price of $48.52, for a total value of $45,996.96. Following the sale, the senior vice president owned 9,876 shares of the company's stock, valued at $479,183.52. The trade was a 8.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.67% of the stock is currently owned by insiders.

Analysts Set New Price Targets

AAP has been the subject of a number of research analyst reports. Wells Fargo & Company increased their target price on Advance Auto Parts from $45.00 to $50.00 and gave the company an "equal weight" rating in a report on Friday, August 15th. Citigroup set a $60.00 target price on Advance Auto Parts in a report on Thursday, August 14th. Wall Street Zen upgraded Advance Auto Parts from a "sell" rating to a "hold" rating in a report on Saturday, August 16th. Raymond James Financial lifted their price target on Advance Auto Parts to $49.17 and gave the stock a "hold" rating in a report on Monday, May 26th. Finally, Truist Financial upped their price objective on shares of Advance Auto Parts from $51.00 to $53.00 and gave the company a "hold" rating in a report on Friday, August 15th. One research analyst has rated the stock with a Buy rating, eighteen have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Advance Auto Parts currently has a consensus rating of "Reduce" and a consensus price target of $51.78.

Advance Auto Parts Trading Up 0.1%

Shares of AAP stock traded up $0.04 during trading hours on Wednesday, hitting $59.58. The company had a trading volume of 485,062 shares, compared to its average volume of 2,566,470. The stock has a market capitalization of $3.57 billion, a PE ratio of -9.37 and a beta of 1.06. 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 fifty-two week low of $28.89 and a fifty-two week high of $70.00. The company's fifty day moving average is $58.56 and its 200 day moving average is $46.08.

Advance Auto Parts (NYSE:AAP - Get Free Report) last announced its earnings results on Thursday, August 14th. The company reported $0.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.59 by $0.10. The company had revenue of $2.01 billion for the quarter, compared to analyst estimates of $1.97 billion. Advance Auto Parts had a negative return on equity of 1.97% and a negative net margin of 4.37%.The firm's quarterly revenue was down 7.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.75 earnings per share. Advance Auto Parts has set its FY 2025 guidance at 1.200-2.20 EPS. Research analysts expect that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Shareholders of record on Friday, October 10th will be given a $0.25 dividend. The ex-dividend date of this dividend is Friday, October 10th. This represents a $1.00 dividend on an annualized basis and a yield of 1.7%. Advance Auto Parts's payout ratio is presently -15.70%.

About Advance Auto Parts

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.