NFJ Investment Group LLC Acquires Shares of 47,918 Advance Auto Parts, Inc. $AAP

Key Points

• NFJ Investment Group acquired 47,918 Advance Auto Parts shares worth approximately $2.98 million, giving it about a 0.08% stake. Institutional investors and hedge funds collectively own 88.7% of the company.
• Advance Auto Parts beat second-quarter EPS estimates with $1.03 versus $0.81 expected, while gross margins improved and net leverage declined. However, revenue fell 0.5% year over year to roughly $2.0 billion, missing estimates as financially constrained customers reduced DIY repairs.
• Management maintained fiscal 2026 guidance of $8.485 billion-$8.575 billion in revenue and $2.60-$3.30 in EPS. Analysts remain cautious, with the stock carrying a consensus “Hold” rating and an average price target of $57.66.

NFJ Investment Group LLC acquired a new stake in Advance Auto Parts, Inc. (NYSE:AAP - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 47,918 shares of the company's stock, valued at approximately $2,981,000. NFJ Investment Group LLC owned about 0.08% of Advance Auto Parts at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in AAP. Royal Bank of Canada lifted its position in Advance Auto Parts by 107.2% during the first quarter. Royal Bank of Canada now owns 79,558 shares of the company's stock valued at $3,119,000 after purchasing an additional 41,157 shares during the period. Goldman Sachs Group Inc. boosted its holdings in Advance Auto Parts by 327.7% in the first quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company's stock valued at $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 grew its position in Advance Auto Parts by 14.6% during the 1st 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 period. Hsbc Holdings PLC grew its position in Advance Auto Parts by 3.1% during the 2nd 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 period. Finally, Baird Financial Group Inc. raised its stake in shares of Advance Auto Parts by 2.7% during the 2nd quarter. Baird Financial Group Inc. now owns 56,782 shares of the company's stock valued at $2,640,000 after buying an additional 1,515 shares during the last quarter. Institutional investors and hedge funds own 88.70% of the company's stock.

Key Headlines Impacting Advance Auto Parts

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

• Positive Sentiment: Second-quarter adjusted EPS was $1.03, above the $0.81 analyst consensus and up from $0.69 a year earlier. Gross margin improved to 46.2% from 43.5%, while operating income rose substantially year over year. Advance Auto Parts Q2 Earnings Surpass Estimates
• Positive Sentiment: Advance Auto Parts reduced net leverage to 2.1x from 2.4x in the prior quarter and repurchased approximately $30 million of debt, supporting its balance-sheet recovery strategy. Some analyst commentary characterized the selloff as a potential near-term opportunity, while other coverage pointed to a broader business-recovery shift. Advance Auto Parts Signals Business Recovery Shift
• Positive Sentiment: The company declared a quarterly dividend of $0.25 per share, payable October 23 to shareholders of record October 9. The dividend provides ongoing income support, although the reported yield was approximately 2.4%.
• Neutral Sentiment: Management maintained fiscal 2026 revenue guidance of approximately $8.485 billion to $8.575 billion and EPS guidance of $2.60 to $3.30. The range remains broad, with its midpoint near analyst expectations, offering limited evidence of a material acceleration in growth. Advance Auto Parts Reports Second Quarter 2026 Results
• Negative Sentiment: Revenue of roughly $2.0 billion missed the approximately $2.04 billion consensus, declined 0.5% year over year, and comparable-store sales also fell 0.5%. Investors viewed the sales shortfall as more important than the EPS beat because it signaled subdued underlying demand. Revenue Miss and Muted Outlook Outweigh Earnings Beat
• Negative Sentiment: Management said financially constrained customers are delaying or reducing do-it-yourself vehicle repairs, weakening DIY sales. The cautious demand commentary and largely unchanged outlook intensified concerns that the recovery may take longer than expected. Cash-Strapped DIY Customers Tap the Brakes

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Mizuho boosted their price objective on Advance Auto Parts from $54.00 to $58.00 and gave the company a "neutral" rating in a report on Tuesday, May 26th. BMO Capital Markets raised their target price on Advance Auto Parts from $60.00 to $65.00 and gave the stock a "market perform" rating in a report on Friday, May 22nd. Truist Financial set a $43.00 price target on Advance Auto Parts in a research report on Thursday. JPMorgan Chase & Co. decreased their price target on Advance Auto Parts from $64.00 to $59.00 and set a "neutral" rating for the company in a report on Friday, May 15th. Finally, Morgan Stanley upped their price objective on Advance Auto Parts from $60.00 to $65.00 and gave the stock an "equal weight" rating in a research report on Friday, May 22nd. Two investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $57.66.

Advance Auto Parts Stock Performance

NYSE:AAP opened at $42.37 on Friday. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.85 and a current ratio of 1.78. The stock has a market capitalization of $2.56 billion, a PE ratio of 58.85, a P/E/G ratio of 0.93 and a beta of 1.03. Advance Auto Parts, Inc. has a fifty-two week low of $37.89 and a fifty-two week high of $65.21. The company has a fifty day moving average of $56.94 and a two-hundred day moving average of $55.43.

Advance Auto Parts (NYSE:AAP - Get Free Report) last announced its 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 business had revenue of $2 billion for the quarter, compared to analyst estimates of $2.04 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The company's revenue for the quarter was down .5% compared to the same quarter last year. During the same quarter last year, the business earned $0.69 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. As a group, research analysts forecast that Advance Auto Parts, Inc. will post 2.94 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 2.4%. The ex-dividend date is Friday, October 9th. Advance Auto Parts's payout ratio is presently 138.89%.

Advance Auto Parts 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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