Wellington Management Group LLP Cuts Position in Advance Auto Parts, Inc. $AAP

Key Points

• Wellington Management reduced its Advance Auto Parts stake by 17.3% in the second quarter, selling 134,476 shares and retaining 641,809 shares worth approximately $39.9 million. Institutional investors collectively own 88.7% of the company.
• Advance Auto Parts beat quarterly earnings expectations, reporting $1.03 in EPS versus the $0.81 consensus, though revenue fell 0.5% year over year to $2.0 billion. The company maintained fiscal 2026 EPS guidance of $2.60 to $3.30.
• Analysts remain cautious, with the stock holding a consensus “Hold” rating and an average price target of $50.19. The company also declared a quarterly dividend of $0.25 per share, yielding about 2.3% annually.

Wellington Management Group LLP decreased its position in Advance Auto Parts, Inc. (NYSE:AAP - Free Report) by 17.3% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 641,809 shares of the company's stock after selling 134,476 shares during the quarter. Wellington Management Group LLP owned 1.06% of Advance Auto Parts worth $39,933,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in AAP. Empowered Funds LLC purchased a new stake in shares of Advance Auto Parts in the 2nd quarter valued at approximately $3,527,000. Corient Private Wealth LP purchased a new stake in shares of Advance Auto Parts during the 2nd quarter worth $529,000. Bank of America Corp DE purchased a new stake in shares of Advance Auto Parts during the 2nd quarter worth $59,626,000. Fund 1 Investments LLC acquired a new position in shares of Advance Auto Parts during the second quarter worth $12,999,000. Finally, Man Group plc purchased a new position in Advance Auto Parts in the second quarter valued at $311,000. Institutional investors and hedge funds own 88.70% of the company's stock.

Advance Auto Parts Price Performance

Shares of AAP opened at $44.17 on Friday. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.85 and a current ratio of 1.75. Advance Auto Parts, Inc. has a fifty-two week low of $37.89 and a fifty-two week high of $65.21. The firm has a 50-day simple moving average of $53.43 and a 200-day simple moving average of $54.52. The company has a market capitalization of $2.67 billion, a price-to-earnings ratio of 32.24, a price-to-earnings-growth ratio of 0.69 and a beta of 1.01.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its quarterly earnings data on Thursday, August 20th. The company reported $1.03 EPS for the quarter, beating the consensus estimate 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 firm had revenue of $2 billion during the quarter, compared to the consensus estimate of $2.04 billion. During the same period in the prior year, the business earned $0.69 EPS. The firm's 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. On average, equities research analysts anticipate that Advance Auto Parts, Inc. will post 2.98 earnings per share for the current year.

Advance Auto Parts Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, October 9th. Advance Auto Parts's dividend payout ratio is 72.99%.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Guggenheim restated a "neutral" rating on shares of Advance Auto Parts in a research note on Friday, August 21st. BMO Capital Markets reiterated a "market perform" rating on shares of Advance Auto Parts in a report on Friday, August 21st. Evercore set a $65.00 target price on Advance Auto Parts in a research note on Tuesday, August 4th. DA Davidson lowered their price target on Advance Auto Parts from $58.00 to $48.00 and set a "neutral" rating for the company in a report on Friday, August 21st. Finally, The Goldman Sachs Group set a $49.00 price target on shares of Advance Auto Parts in a research note on Friday, August 21st. Two research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $50.19.

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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