Advance Auto Parts (NYSE:AAP) Shares Gap Down on Disappointing Earnings

Shares of Advance Auto Parts, Inc. (NYSE:AAP) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $58.40, but opened at $54.80. Advance Auto Parts shares last traded at $58.06, with a volume of 1,623,690 shares.

The company reported ($0.82) EPS for the quarter, missing the consensus estimate of $1.44 by ($2.26). Advance Auto Parts had a return on equity of 17.53% and a net margin of 3.08%. The company had revenue of $2.72 billion during the quarter, compared to the consensus estimate of $2.68 billion. During the same period last year, the firm posted $2.84 earnings per share. The company’s revenue was up 2.9% compared to the same quarter last year.

Advance Auto Parts Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 26th. Stockholders of record on Friday, January 12th will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.80%. Advance Auto Parts’s payout ratio is currently 17.30%.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on AAP shares. Stephens lowered their price target on Advance Auto Parts from $77.00 to $71.00 and set an “equal weight” rating on the stock in a report on Friday, August 25th. StockNews.com assumed coverage on Advance Auto Parts in a research report on Thursday, October 5th. They set a “hold” rating for the company. Evercore ISI reduced their price objective on Advance Auto Parts from $80.00 to $75.00 and set an “in-line” rating for the company in a research report on Friday, September 8th. Wedbush reiterated a “neutral” rating and set a $80.00 price objective on shares of Advance Auto Parts in a research report on Thursday, August 24th. Finally, Wells Fargo & Company reduced their price objective on Advance Auto Parts from $70.00 to $60.00 and set an “equal weight” rating for the company in a research report on Monday. One equities research analyst has rated the stock with a sell rating, twenty-one have assigned a hold rating and one has given a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $89.25.

Insider Buying and Selling

In other Advance Auto Parts news, Director Eugene I. Lee, Jr. bought 8,670 shares of the business’s stock in a transaction that occurred on Wednesday, September 13th. The stock was purchased at an average price of $57.65 per share, for a total transaction of $499,825.50. Following the completion of the transaction, the director now owns 19,430 shares of the company’s stock, valued at approximately $1,120,139.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.63% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Advance Auto Parts

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AAP. Clear Street Markets LLC boosted its stake in Advance Auto Parts by 245.9% during the first quarter. Clear Street Markets LLC now owns 211 shares of the company’s stock valued at $26,000 after buying an additional 150 shares during the last quarter. UniSuper Management Pty Ltd bought a new stake in shares of Advance Auto Parts in the 2nd quarter valued at approximately $28,000. Ameritas Advisory Services LLC bought a new stake in shares of Advance Auto Parts in the 1st quarter valued at approximately $29,000. UMB Bank n.a. lifted its stake in shares of Advance Auto Parts by 508.3% in the 3rd quarter. UMB Bank n.a. now owns 511 shares of the company’s stock valued at $29,000 after purchasing an additional 427 shares during the last quarter. Finally, Covestor Ltd lifted its stake in shares of Advance Auto Parts by 113.7% in the 1st quarter. Covestor Ltd now owns 156 shares of the company’s stock valued at $32,000 after purchasing an additional 83 shares during the last quarter. 88.75% of the stock is owned by institutional investors.

Advance Auto Parts Price Performance

The firm has a market capitalization of $3.31 billion, a P/E ratio of 9.63, a price-to-earnings-growth ratio of 1.06 and a beta of 1.14. The firm has a 50 day moving average price of $54.97 and a 200-day moving average price of $72.12. The company has a current ratio of 1.26, a quick ratio of 0.25 and a debt-to-equity ratio of 0.66.

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.