William Blair Issues Pessimistic Estimate for AAP Earnings

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Investment analysts at William Blair reduced their Q2 2025 earnings per share (EPS) estimates for Advance Auto Parts in a report released on Thursday, May 22nd. William Blair analyst P. Blee now anticipates that the company will earn $0.46 per share for the quarter, down from their previous forecast 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 research analysts have also issued reports on AAP. DA Davidson increased their target price on shares of Advance Auto Parts from $45.00 to $47.00 and gave the stock a "neutral" rating in a research note on Friday, May 23rd. Wedbush restated an "outperform" rating and set a $55.00 price objective on shares of Advance Auto Parts in a research note on Monday, March 3rd. Royal Bank of Canada cut their target price on Advance Auto Parts from $50.00 to $44.00 and set a "sector perform" rating on the stock in a research note on Thursday, February 27th. UBS Group reiterated a "neutral" rating and issued a $50.00 target price (up from $36.00) on shares of Advance Auto Parts in a research note on Friday, May 23rd. Finally, The Goldman Sachs Group reiterated a "neutral" rating and set a $48.00 price target (up previously from $43.00) on shares of Advance Auto Parts in a research note on Thursday, May 22nd. One analyst has rated the stock with a sell rating, nineteen have assigned a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $46.11.

Advance Auto Parts Trading Up 0.5%

AAP traded up $0.24 during midday trading on Monday, hitting $48.60. 438,539 shares of the company were exchanged, compared to its average volume of 2,451,686. The firm has a market capitalization of $2.91 billion, a P/E ratio of 66.36, a P/E/G ratio of 1.98 and a beta of 0.93. The firm's 50 day moving average price is $35.60 and its 200-day moving average price is $40.67. The company has a quick ratio of 0.62, a current ratio of 1.34 and a debt-to-equity ratio of 0.69. Advance Auto Parts has a 1-year low of $28.89 and a 1-year high of $71.09.

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

Advance Auto Parts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, July 11th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Friday, July 11th. This represents a $1.00 annualized dividend and a yield of 2.06%. Advance Auto Parts's dividend payout ratio (DPR) is -17.04%.

Insider Buying and Selling

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

Hedge Funds Weigh In On Advance Auto Parts

Hedge funds have recently made changes to their positions in the stock. Hexagon Capital Partners LLC raised its stake in shares of Advance Auto Parts by 189.0% in the 1st quarter. Hexagon Capital Partners LLC now owns 711 shares of the company's stock valued at $28,000 after purchasing an additional 465 shares in the last quarter. Allworth Financial LP raised its stake in shares of Advance Auto Parts by 1,543.4% in the 4th quarter. Allworth Financial LP now owns 871 shares of the company's stock worth $40,000 after buying an additional 818 shares in the last quarter. Vision Financial Markets LLC bought a new position in shares of Advance Auto Parts during the 4th quarter valued at about $42,000. Advisory Services Network LLC bought a new position in shares of Advance Auto Parts in the fourth quarter valued at $46,000. Finally, Financial Management Professionals Inc. purchased a new stake in shares of Advance Auto Parts during the first quarter valued at $49,000. Institutional investors and hedge funds own 88.75% of the company's stock.

Advance Auto Parts Company Profile

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.