DA Davidson Issues Optimistic Outlook 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 upped their Q3 2025 EPS estimates for Advance Auto Parts in a report issued on Tuesday, September 9th. DA Davidson analyst M. Baker now expects that the company will post earnings of $0.74 per share for the quarter, up from their previous forecast of $0.73. DA Davidson currently has a "Neutral" rating and a $63.00 price target 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 issued its earnings results on Thursday, August 14th. The company reported $0.69 EPS for the quarter, topping the consensus estimate of $0.59 by $0.10. The company had revenue of $2.01 billion for the quarter, compared to the consensus estimate of $1.97 billion. Advance Auto Parts had a negative net margin of 4.37% and a negative return on equity of 1.97%. The firm's revenue for the quarter was down 7.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.75 earnings per share. Advance Auto Parts has set its FY 2025 guidance at 1.200-2.20 EPS.

AAP has been the topic of a number of other reports. Wells Fargo & Company upped their target price on shares of Advance Auto Parts from $45.00 to $50.00 and gave the stock an "equal weight" rating in a research report on Friday, August 15th. Mizuho upped their price target on shares of Advance Auto Parts from $44.00 to $54.00 and gave the stock a "neutral" rating in a research note on Friday, August 29th. Evercore ISI upped their price target on shares of Advance Auto Parts from $56.00 to $58.00 and gave the stock an "in-line" rating in a research note on Tuesday, August 12th. Wall Street Zen upgraded shares of Advance Auto Parts from a "sell" rating to a "hold" rating in a research note on Saturday, August 16th. Finally, Bank of America upped their target price on shares of Advance Auto Parts from $33.00 to $39.00 and gave the company an "underperform" rating in a research note on Friday, May 23rd. One analyst has rated the stock with a Buy rating, eighteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Advance Auto Parts currently has an average rating of "Reduce" and an average target price of $52.03.

Advance Auto Parts Trading Up 3.7%

Advance Auto Parts stock traded up $2.26 during mid-day trading on Wednesday, reaching $63.35. 929,555 shares of the company traded hands, compared to its average volume of 2,548,274. The firm's 50 day moving average price is $59.18 and its 200 day moving average price is $46.54. The firm has a market capitalization of $3.80 billion, a price-to-earnings ratio of -9.94 and a beta of 1.06. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.27 and a quick ratio of 0.49. Advance Auto Parts has a 52-week low of $28.89 and a 52-week high of $70.00.

Advance Auto Parts Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 24th. Shareholders of record on Friday, October 10th will be given a dividend of $0.25 per share. The ex-dividend date is Friday, October 10th. This represents a $1.00 annualized dividend and a yield of 1.6%. Advance Auto Parts's dividend payout ratio (DPR) is -15.70%.

Insider Buying and Selling

In other Advance Auto Parts news, SVP Jason Hand sold 948 shares of the stock in a transaction on Friday, June 20th. The shares were sold at an average price of $48.52, for a total transaction of $45,996.96. Following the completion of the transaction, the senior vice president owned 9,876 shares in the company, valued at $479,183.52. This trade represents a 8.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.67% of the stock is owned by company insiders.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors have recently bought and sold shares of AAP. Hsbc Holdings PLC raised its stake in shares of Advance Auto Parts by 3.1% in the second quarter. Hsbc Holdings PLC now owns 6,306 shares of the company's stock valued at $293,000 after acquiring an additional 191 shares during the period. Rockefeller Capital Management L.P. raised its stake in shares of Advance Auto Parts by 2.0% in the second quarter. Rockefeller Capital Management L.P. now owns 14,535 shares of the company's stock valued at $676,000 after acquiring an additional 283 shares during the period. Central Pacific Bank Trust Division raised its stake in shares of Advance Auto Parts by 10.0% in the first quarter. Central Pacific Bank Trust Division now owns 3,300 shares of the company's stock valued at $129,000 after acquiring an additional 300 shares during the period. KLP Kapitalforvaltning AS raised its stake in shares of Advance Auto Parts by 2.5% in the second quarter. KLP Kapitalforvaltning AS now owns 12,500 shares of the company's stock valued at $581,000 after acquiring an additional 300 shares during the period. Finally, Capital Square LLC raised its stake in shares of Advance Auto Parts by 4.3% in the second quarter. Capital Square LLC now owns 7,265 shares of the company's stock valued at $338,000 after acquiring an additional 300 shares during the period. Institutional investors own 88.70% 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.