Advance Auto Parts (NYSE:AAP) Trading Up 5.7% - Here's What Happened

Key Points

• Advance Auto Parts shares rose 5.7% to about $43.37, although trading volume was 65% below the average session level.
• Analyst sentiment remains cautious: 17 analysts rate the stock Hold, with an average price target of $50.19 after several firms recently lowered their targets.
• The company beat quarterly earnings expectations, reporting $1.03 per share versus the $0.81 consensus, but revenue declined 0.5% year over year. Advance Auto Parts also declared a quarterly dividend of $0.25, representing a 2.3% annualized yield.

Shares of Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) rose 5.7% on Tuesday . The company traded as high as $43.57 and last traded at $43.3670. 662,770 shares changed hands during trading, a decline of 65% from the average session volume of 1,888,084 shares. The stock had previously closed at $41.01.

Wall Street Analyst Weigh In

AAP has been the subject of a number of research reports. UBS Group lowered their price objective on Advance Auto Parts from $65.00 to $47.00 and set a "neutral" rating for the company in a research report on Friday, August 21st. Weiss Ratings reissued a "hold (c-)" rating on shares of Advance Auto Parts in a research note on Wednesday, August 26th. Morgan Stanley reduced their target price on Advance Auto Parts from $65.00 to $52.00 and set an "equal weight" rating on the stock in a report on Friday, August 21st. JPMorgan Chase & Co. reduced their price objective on shares of Advance Auto Parts from $65.00 to $55.00 and set a "neutral" rating on the stock in a research note on Friday, August 21st. Finally, Royal Bank Of Canada decreased their price objective on shares of Advance Auto Parts from $67.00 to $52.00 and set a "sector perform" rating for the company in a report on Friday, August 21st. Two investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Advance Auto Parts presently has an average rating of "Hold" and an average price target of $50.19.

Advance Auto Parts Stock Performance

The stock has a fifty day simple moving average of $50.01 and a 200-day simple moving average of $53.64. The stock has a market cap of $2.59 billion, a P/E ratio of 31.33, a PEG ratio of 0.68 and a beta of 1.01. 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 (NYSE:AAP - Get Free Report) last posted its quarterly earnings data on Thursday, August 20th. The company reported $1.03 earnings per share for the quarter, topping 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 company had revenue of $2 billion during the quarter, compared to analysts' expectations of $2.04 billion. During the same period in the prior year, the firm earned $0.69 earnings per share. Advance Auto Parts's revenue for the quarter 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 analysts expect that Advance Auto Parts, Inc. will post 2.98 earnings per share for the current year.

Advance Auto Parts Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be issued a $0.25 dividend. The ex-dividend date is Friday, October 9th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.3%. Advance Auto Parts's dividend payout ratio (DPR) is 72.99%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Allworth Financial LP acquired a new position in shares of Advance Auto Parts during the 2nd quarter worth about $25,000. State of Wyoming bought a new stake in Advance Auto Parts during the second quarter worth about $34,000. Hantz Financial Services Inc. boosted 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 valued at $36,000 after purchasing an additional 596 shares during the last quarter. Leonteq Securities AG bought a new position in Advance Auto Parts in the fourth quarter valued at approximately $55,000. Finally, PNC Financial Services Group Inc. increased its position in shares of Advance Auto Parts by 9.9% during the 1st quarter. PNC Financial Services Group Inc. now owns 2,224 shares of the company's stock worth $117,000 after purchasing an additional 200 shares during the last quarter. Institutional investors own 88.70% of the company's stock.

About Advance Auto Parts

Advance Auto Parts, Inc NYSE: AAP is an automotive aftermarket parts provider serving do-it-yourself customers, professional repair shops and commercial customers. The company sells replacement parts, accessories, maintenance items, batteries, engine components, tools and other products used to maintain and repair cars, trucks and other vehicles.

Advance Auto Parts serves customers through a network of retail stores, distribution centers and online channels. Its operations include the Advance Auto Parts and Carquest brands, with products available through company-operated locations, independently operated Carquest stores and commercial delivery programs for professional customers.

The company's business primarily covers the United States, with additional operations and customer service in Canada and certain U.S.

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