William Blair Analysts Reduce Earnings Estimates for AAP

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Stock analysts at William Blair dropped their Q2 2025 EPS estimates for Advance Auto Parts in a note issued to investors on Thursday, May 22nd. William Blair analyst P. Blee now forecasts that the company will post earnings per share of $0.46 for the quarter, down from their previous estimate of $0.47. The consensus estimate for Advance Auto Parts' current full-year earnings is ($0.46) per share. William Blair also issued estimates for Advance Auto Parts' Q4 2025 earnings at $0.77 EPS, FY2025 earnings at $1.80 EPS and FY2026 earnings at $3.25 EPS.

Several other analysts have also issued reports on the stock. BMO Capital Markets reiterated a "market perform" rating and issued a $50.00 target price (up previously from $40.00) on shares of Advance Auto Parts in a research report on Friday, May 23rd. Truist Financial dropped their target price on shares of Advance Auto Parts from $39.00 to $34.00 and set a "hold" rating on the stock in a research report on Thursday, February 27th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $48.00 target price (up previously from $43.00) on shares of Advance Auto Parts in a research report on Thursday, May 22nd. Cowen reiterated a "hold" rating on shares of Advance Auto Parts in a research report on Friday, May 23rd. Finally, Wells Fargo & Company set a $35.00 target price on shares of Advance Auto Parts and gave the company an "equal weight" rating in a research report on Monday, May 19th. One investment analyst has rated the stock with a sell rating, nineteen have given a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $46.11.

Advance Auto Parts Stock Performance

AAP stock traded up $3.15 during midday trading on Monday, hitting $52.75. 6,726,221 shares of the stock traded hands, compared to its average volume of 2,470,748. The firm has a market cap of $3.16 billion, a P/E ratio of 72.26, a PEG ratio of 1.98 and a beta of 0.93. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.34 and a quick ratio of 0.62. The stock's fifty day simple moving average is $35.10 and its 200-day simple moving average is $40.53. Advance Auto Parts has a 1-year low of $28.89 and a 1-year high of $71.62.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its quarterly earnings results on Thursday, May 22nd. The company reported ($0.22) EPS for the quarter, beating the consensus estimate of ($0.81) by $0.59. The company had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.51 billion. Advance Auto Parts had a net margin of 0.41% and a return on equity of 1.82%. The firm's revenue was down 24.2% on a year-over-year basis. During the same quarter last year, the business earned $0.67 earnings per share.

Hedge Funds Weigh In On Advance Auto Parts

A number of institutional investors have recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Advance Auto Parts by 14.6% during the first 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. Empowered Funds LLC raised its stake in Advance Auto Parts by 1.9% during the first quarter. Empowered Funds LLC now owns 192,880 shares of the company's stock worth $7,563,000 after purchasing an additional 3,686 shares during the period. Caxton Associates LLP purchased a new position in Advance Auto Parts during the first quarter worth about $1,068,000. Goldman Sachs Group Inc. raised its stake in shares of Advance Auto Parts by 327.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company's stock valued at $14,230,000 after acquiring an additional 278,066 shares during the period. Finally, Scientech Research LLC purchased a new stake in shares of Advance Auto Parts in the 1st quarter valued at approximately $616,000. 88.75% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, CEO Shane M. Okelly bought 1,500 shares of Advance Auto Parts stock in a transaction on Tuesday, March 11th. The shares were bought at an average cost of $36.79 per share, with a total value of $55,185.00. Following the completion of the purchase, the chief executive officer now directly owns 183,121 shares of the company's stock, valued at approximately $6,737,021.59. This trade represents a 0.83% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Eugene I. Lee, Jr. bought 14,640 shares of Advance Auto Parts stock in a transaction on Thursday, March 6th. The shares were purchased at an average cost of $34.15 per share, for a total transaction of $499,956.00. Following the completion of the purchase, the director now directly owns 34,070 shares of the company's stock, valued at $1,163,490.50. This trade represents a 75.35% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.35% of the stock is owned by insiders.

Advance Auto Parts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 25th. Shareholders of record on Friday, July 11th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.90%. The ex-dividend date of this dividend is Friday, July 11th. Advance Auto Parts's dividend payout ratio (DPR) is presently -17.04%.

About Advance Auto Parts

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts.