Solas Capital Management LLC Makes New $10.53 Million Investment in Advance Auto Parts, Inc. $AAP

Key Points

• Solas Capital Management initiated a $10.53 million position in Advance Auto Parts, purchasing 169,163 shares, or approximately 0.28% of the company. Institutional investors collectively own 88.7% of AAP.
• Advance Auto Parts reported quarterly EPS of $1.03, beating estimates of $0.81, while revenue reached $2 billion, slightly below forecasts and down 0.5% year over year. The company maintained FY 2026 EPS guidance of $2.60–$3.30.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and a $50.80 price target after several firms lowered their targets. Shares opened at $43.58, and the company announced a quarterly dividend of $0.25 per share, yielding about 2.3%.

Solas Capital Management LLC purchased a new stake in Advance Auto Parts, Inc. (NYSE:AAP - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 169,163 shares of the company's stock, valued at approximately $10,525,000. Advance Auto Parts makes up 5.6% of Solas Capital Management LLC's investment portfolio, making the stock its 9th largest holding. Solas Capital Management LLC owned approximately 0.28% of Advance Auto Parts as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Allworth Financial LP purchased a new stake in Advance Auto Parts in the 2nd quarter valued at $25,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Advance Auto Parts during the 3rd quarter valued at about $31,000. State of Wyoming purchased a new stake in shares of Advance Auto Parts in the second quarter valued at about $34,000. AlphaCore Capital LLC increased its position in Advance Auto Parts by 53.6% during the fourth quarter. AlphaCore Capital LLC now owns 883 shares of the company's stock worth $35,000 after purchasing an additional 308 shares during the last quarter. Finally, Hantz Financial Services Inc. increased its position in Advance Auto Parts by 184.5% during the fourth quarter. Hantz Financial Services Inc. now owns 919 shares of the company's stock worth $36,000 after purchasing an additional 596 shares during the last quarter. Hedge funds and other institutional investors own 88.70% of the company's stock.

Advance Auto Parts Stock Performance

NYSE:AAP opened at $43.58 on Tuesday. 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 debt-to-equity ratio of 1.50, a quick ratio of 0.85 and a current ratio of 1.75. The company has a 50 day moving average price of $56.23 and a 200 day moving average price of $55.34. The stock has a market capitalization of $2.63 billion, a P/E ratio of 31.81, a PEG ratio of 0.69 and a beta of 1.03.

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 analysts' consensus estimates of $0.81 by $0.22. Advance Auto Parts had a return on equity of 9.84% and a net margin of 0.97%.The company had revenue of $2 billion for the quarter, compared to analyst estimates of $2.04 billion. During the same quarter in the previous year, the company earned $0.69 earnings per share. The firm's quarterly revenue was down .5% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. Equities research analysts forecast that Advance Auto Parts, Inc. will post 2.97 EPS for the current year.

Advance Auto Parts Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 9th will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Friday, October 9th. Advance Auto Parts's payout ratio is currently 72.99%.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on AAP shares. Morgan Stanley decreased their target price on shares of Advance Auto Parts from $65.00 to $52.00 and set an "equal weight" rating on the stock in a report on Friday. Roth Capital set a $48.00 price objective on Advance Auto Parts in a report on Friday. BMO Capital Markets reiterated a "market perform" rating on shares of Advance Auto Parts in a research report on Friday. DA Davidson cut their target price on Advance Auto Parts from $58.00 to $48.00 and set a "neutral" rating for the company in a research note on Friday. Finally, Citigroup reduced their target price on Advance Auto Parts from $57.00 to $45.00 and set a "neutral" rating on the stock in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $50.80.

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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