Roth Capital Has Optimistic Outlook of AAP Q3 Earnings

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Stock analysts at Roth Capital lifted their Q3 2025 earnings per share (EPS) estimates for Advance Auto Parts in a report issued on Wednesday, May 28th. Roth Capital analyst S. Stember now forecasts that the company will post earnings of $0.81 per share for the quarter, up from their prior estimate of $0.73. Roth Capital currently has a "Neutral" rating and a $50.00 target price on the stock. The consensus estimate for Advance Auto Parts' current full-year earnings is ($0.46) per share. Roth Capital also issued estimates for Advance Auto Parts' Q1 2026 earnings at $0.81 EPS, Q3 2026 earnings at $1.01 EPS, Q4 2026 earnings at $0.98 EPS and FY2026 earnings at $3.60 EPS.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its quarterly earnings data on Thursday, May 22nd. The company reported ($0.22) earnings per share for the quarter, topping the consensus estimate of ($0.81) by $0.59. Advance Auto Parts had a net margin of 0.41% and a return on equity of 1.82%. 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 prior year, the company posted $0.67 earnings per share. The company's quarterly revenue was down 24.2% compared to the same quarter last year.

A number of other analysts have also commented on the stock. DA Davidson upped their price objective on shares of Advance Auto Parts from $45.00 to $47.00 and gave the company a "neutral" rating in a research note on Friday, May 23rd. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $48.00 target price (up previously from $43.00) on shares of Advance Auto Parts in a research note on Thursday, May 22nd. Morgan Stanley upped their target price on Advance Auto Parts from $45.00 to $48.00 and gave the company an "equal weight" rating in a report on Friday, May 23rd. Cowen reiterated a "hold" rating on shares of Advance Auto Parts in a report on Friday, May 23rd. Finally, UBS Group reissued a "neutral" rating and issued a $50.00 price target (up previously from $36.00) on shares of Advance Auto Parts in a research note on Friday, May 23rd. One analyst has rated the stock with a sell rating, eighteen have assigned a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $46.11.

Advance Auto Parts Price Performance

NYSE:AAP traded up $1.32 during trading hours on Thursday, reaching $49.25. 946,364 shares of the company's stock were exchanged, compared to its average volume of 2,447,937. Advance Auto Parts has a 12 month low of $28.89 and a 12 month high of $71.09. The company has a market capitalization of $2.95 billion, a P/E ratio of 67.41, a price-to-earnings-growth ratio of 1.98 and a beta of 0.93. The company has a quick ratio of 0.62, a current ratio of 1.34 and a debt-to-equity ratio of 0.69. The business's 50-day simple moving average is $35.81 and its two-hundred day simple moving average is $40.72.

Advance Auto Parts Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, July 11th will be paid 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 2.03%. Advance Auto Parts's dividend payout ratio (DPR) is presently -17.04%.

Insider Activity at Advance Auto Parts

In other news, CEO Shane M. Okelly acquired 1,500 shares of the business's stock in a transaction that occurred 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 directly owns 183,121 shares in the company, valued at $6,737,021.59. The trade was a 0.83% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Eugene I. Lee, Jr. bought 14,640 shares of Advance Auto Parts stock in a transaction that occurred on Thursday, March 6th. The stock was bought at an average price of $34.15 per share, for a total transaction of $499,956.00. Following the completion of the acquisition, the director now directly owns 34,070 shares of the company's stock, valued at $1,163,490.50. The trade was 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 currently owned by corporate insiders.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors have recently made changes to their positions in AAP. SG Americas Securities LLC grew its stake in shares of Advance Auto Parts by 57.2% in the 4th quarter. SG Americas Securities LLC now owns 8,603 shares of the company's stock worth $407,000 after acquiring an additional 3,130 shares in the last quarter. Blue Trust Inc. increased its stake in shares of Advance Auto Parts by 75.9% in the fourth quarter. Blue Trust Inc. now owns 2,119 shares of the company's stock worth $100,000 after purchasing an additional 914 shares in the last quarter. KBC Group NV grew its stake in Advance Auto Parts by 51.6% in the 4th quarter. KBC Group NV now owns 2,651 shares of the company's stock valued at $125,000 after buying an additional 902 shares in the last quarter. OLD National Bancorp IN bought a new stake in shares of Advance Auto Parts during the 4th quarter valued at $312,000. Finally, Yousif Capital Management LLC increased its position in shares of Advance Auto Parts by 1.1% during the fourth quarter. Yousif Capital Management LLC now owns 26,258 shares of the company's stock valued at $1,242,000 after buying an additional 281 shares during the period. Institutional investors and hedge funds own 88.75% of the company's stock.

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.