DA Davidson Issues Optimistic Forecast for AAP Earnings

Key Points

• DA Davidson has raised its Q3 2025 earnings per share forecast for Advance Auto Parts to $0.74, up from a previous estimate of $0.73.
• Mizuho and Wells Fargo have also recently increased their price targets for the stock, with Mizuho raising it from $44.00 to $54.00 and Wells Fargo from $45.00 to $50.00.
• Advance Auto Parts has declared a quarterly dividend of $0.25 per share, which will be paid on October 24th, representing an annual yield of 1.7%.

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - DA Davidson increased their Q3 2025 earnings per share (EPS) estimates for Advance Auto Parts in a note issued to investors on Tuesday, September 9th. DA Davidson analyst M. Baker now forecasts that the company will post earnings per share of $0.74 for the quarter, up from their previous forecast of $0.73. DA Davidson has a "Neutral" rating and a $63.00 price objective on the stock. The consensus estimate for Advance Auto Parts' current full-year earnings is ($0.46) per share.

Advance Auto Parts (NYSE:AAP - Get Free Report) last announced its quarterly earnings results on Thursday, August 14th. The company reported $0.69 EPS for the quarter, beating the consensus estimate of $0.59 by $0.10. Advance Auto Parts had a negative return on equity of 1.97% and a negative net margin of 4.37%.The company had revenue of $2.01 billion for the quarter, compared to the consensus estimate of $1.97 billion. During the same quarter last year, the company posted $0.75 earnings per share. The company's revenue for the quarter was down 7.7% compared to the same quarter last year. Advance Auto Parts has set its FY 2025 guidance at 1.200-2.20 EPS.

A number of other brokerages have also commented on AAP. Redburn Partners upgraded Advance Auto Parts from a "sell" rating to a "neutral" rating and set a $45.00 price target for the company in a report on Tuesday, June 3rd. UBS Group set a $65.00 price target on Advance Auto Parts and gave the stock a "neutral" rating in a report on Tuesday, August 12th. Citigroup set a $60.00 price target on Advance Auto Parts in a report on Thursday, August 14th. Raymond James Financial upped their price target on Advance Auto Parts to $49.17 and gave the stock a "hold" rating in a report on Monday, May 26th. Finally, Cowen reiterated a "hold" rating on shares of Advance Auto Parts in a report on Friday, May 23rd. One investment analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Advance Auto Parts has an average rating of "Reduce" and an average target price of $52.03.

Advance Auto Parts Stock Performance

Shares of AAP stock traded down $1.10 during trading hours on Wednesday, reaching $61.10. 1,520,412 shares of the company's stock were exchanged, compared to its average volume of 1,345,379. Advance Auto Parts has a fifty-two week low of $28.89 and a fifty-two week high of $70.00. The stock has a market capitalization of $3.67 billion, a P/E ratio of -9.59 and a beta of 1.06. The business has a fifty day moving average price of $59.18 and a 200-day moving average price of $46.41. The company has a quick ratio of 0.49, a current ratio of 1.27 and a debt-to-equity ratio of 0.68.

Advance Auto Parts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Investors of record on Friday, October 10th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Friday, October 10th. Advance Auto Parts's dividend payout ratio is presently -15.70%.

Insider Activity at Advance Auto Parts

In related news, SVP Jason Hand sold 948 shares of the company's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $48.52, for a total value of $45,996.96. Following the completion of the transaction, the senior vice president directly owned 9,876 shares in the company, valued at approximately $479,183.52. This represents a 8.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.35% of the company's stock.

Institutional Trading of Advance Auto Parts

A number of large investors have recently bought and sold shares of AAP. REAP Financial Group LLC bought a new stake in Advance Auto Parts in the second quarter valued at $26,000. Hexagon Capital Partners LLC grew its position in Advance Auto Parts by 189.0% in the first quarter. Hexagon Capital Partners LLC now owns 711 shares of the company's stock valued at $28,000 after acquiring an additional 465 shares during the period. Smartleaf Asset Management LLC grew its position in Advance Auto Parts by 290.3% in the second quarter. Smartleaf Asset Management LLC now owns 925 shares of the company's stock valued at $43,000 after acquiring an additional 688 shares during the period. Parallel Advisors LLC grew its position in Advance Auto Parts by 355.8% in the second quarter. Parallel Advisors LLC now owns 939 shares of the company's stock valued at $44,000 after acquiring an additional 733 shares during the period. Finally, Financial Management Professionals Inc. bought a new stake in Advance Auto Parts in the first quarter valued at $49,000. 88.70% of the stock is currently owned by institutional investors.

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.