Royce & Associates LP Acquires 345,217 Shares of Advance Auto Parts, Inc. $AAP

Key Points

• Royce & Associates LP increased its Advance Auto Parts stake by 30.5% in the fourth quarter, buying 345,217 shares and bringing its total holdings to 1,478,633 shares valued at about $58.1 million.
• Wall Street remains cautious on AAP: analysts currently rate the stock a consensus Hold, with an average price target of $57.62.
• Advance Auto Parts reported better-than-expected quarterly results, posting EPS of $0.77 versus $0.39 expected and revenue of $2.61 billion versus $2.05 billion expected, while also maintaining a quarterly dividend of $0.25 per share.

Royce & Associates LP boosted its holdings in Advance Auto Parts, Inc. (NYSE:AAP - Free Report) by 30.5% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,478,633 shares of the company's stock after purchasing an additional 345,217 shares during the period. Advance Auto Parts makes up 0.6% of Royce & Associates LP's portfolio, making the stock its 23rd largest position. Royce & Associates LP owned 2.46% of Advance Auto Parts worth $58,110,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd bought a new position in shares of Advance Auto Parts during the third quarter valued at about $31,000. AlphaCore Capital LLC raised its stake in shares of Advance Auto Parts by 6,288.9% during the third quarter. AlphaCore Capital LLC now owns 575 shares of the company's stock valued at $35,000 after acquiring an additional 566 shares during the last quarter. Hantz Financial Services Inc. raised its stake in shares of Advance Auto Parts by 184.5% during the fourth quarter. Hantz Financial Services Inc. now owns 919 shares of the company's stock valued at $36,000 after acquiring an additional 596 shares during the last quarter. Smartleaf Asset Management LLC raised its stake in shares of Advance Auto Parts by 290.3% during the second quarter. Smartleaf Asset Management LLC now owns 925 shares of the company's stock valued at $43,000 after acquiring an additional 688 shares during the last quarter. Finally, Atlantic Union Bankshares Corp bought a new position in shares of Advance Auto Parts during the third quarter valued at about $52,000. 88.70% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several equities analysts have recently commented on AAP shares. BMO Capital Markets upped their price objective on shares of Advance Auto Parts from $60.00 to $65.00 and gave the company a "market perform" rating in a research note on Friday. Truist Financial upped their price objective on shares of Advance Auto Parts from $55.00 to $62.00 and gave the company a "hold" rating in a research note on Thursday. Evercore set a $60.00 price objective on shares of Advance Auto Parts in a research note on Wednesday, February 11th. Royal Bank Of Canada upped their price objective on shares of Advance Auto Parts from $62.00 to $65.00 and gave the company a "sector perform" rating in a research note on Friday. Finally, Roth Mkm reaffirmed a "neutral" rating and set a $57.00 price objective on shares of Advance Auto Parts in a research note on Thursday, February 19th. Two research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $57.62.

Advance Auto Parts Price Performance

AAP stock opened at $57.63 on Tuesday. Advance Auto Parts, Inc. has a 1 year low of $37.89 and a 1 year high of $70.00. The company has a market cap of $3.48 billion, a P/E ratio of 80.04, a PEG ratio of 1.02 and a beta of 1.06. The firm has a 50-day moving average of $54.03 and a 200 day moving average of $50.51. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.87.

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, topping analysts' consensus estimates of $0.39 by $0.38. The company had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.05 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. Advance Auto Parts's revenue was up 1.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.40 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. On average, sell-side analysts forecast that Advance Auto Parts, Inc. will post 2.77 EPS for the current year.

Advance Auto Parts Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Friday, July 10th. Advance Auto Parts's dividend payout ratio is 138.89%.

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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