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

Advance Auto Parts, Inc. (NYSE:AAP) shares gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $61.92, but opened at $48.40. Advance Auto Parts shares last traded at $50.69, with a volume of 2,005,757 shares traded.

The company reported $0.75 EPS for the quarter, missing analysts’ consensus estimates of $0.97 by ($0.22). The company had revenue of $2.68 billion during the quarter, compared to analyst estimates of $2.67 billion. Advance Auto Parts had a return on equity of 1.59% and a net margin of 0.37%. Advance Auto Parts’s revenue was down .1% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.43 earnings per share.

Advance Auto Parts Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 25th. Stockholders of record on Friday, October 11th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 2.04%. The ex-dividend date is Friday, October 11th. Advance Auto Parts’s dividend payout ratio (DPR) is presently 144.93%.

Wall Street Analyst Weigh In

A number of analysts have commented on AAP shares. Wedbush reaffirmed a “neutral” rating and set a $55.00 price target (down previously from $65.00) on shares of Advance Auto Parts in a research report on Friday. TD Cowen cut their target price on Advance Auto Parts from $65.00 to $55.00 and set a “hold” rating on the stock in a research report on Friday. Mizuho cut their target price on Advance Auto Parts from $78.00 to $64.00 and set a “neutral” rating on the stock in a research report on Monday, June 10th. Evercore ISI cut their target price on Advance Auto Parts from $64.00 to $60.00 and set an “in-line” rating on the stock in a research report on Friday. Finally, UBS Group upped their target price on Advance Auto Parts from $68.00 to $72.00 and gave the company a “neutral” rating in a research report on Tuesday, May 28th. One investment analyst has rated the stock with a sell rating and fifteen have given a hold rating to the company’s stock. According to MarketBeat.com, Advance Auto Parts currently has an average rating of “Hold” and a consensus price target of $60.86.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in AAP. Principal Securities Inc. bought a new position in Advance Auto Parts in the fourth quarter worth approximately $27,000. Hexagon Capital Partners LLC raised its stake in shares of Advance Auto Parts by 267.7% in the first quarter. Hexagon Capital Partners LLC now owns 353 shares of the company’s stock worth $30,000 after purchasing an additional 257 shares during the last quarter. Allspring Global Investments Holdings LLC purchased a new stake in shares of Advance Auto Parts in the first quarter worth approximately $34,000. Mather Group LLC. raised its stake in shares of Advance Auto Parts by 1,241.7% in the second quarter. Mather Group LLC. now owns 644 shares of the company’s stock worth $41,000 after purchasing an additional 596 shares during the last quarter. Finally, Ashton Thomas Private Wealth LLC purchased a new stake in shares of Advance Auto Parts in the second quarter worth approximately $41,000. Institutional investors own 88.75% of the company’s stock.

Advance Auto Parts Trading Down 3.8 %

The stock has a market capitalization of $2.93 billion, a PE ratio of 71.22, a P/E/G ratio of 1.20 and a beta of 1.20. The firm has a 50 day moving average price of $60.93 and a 200 day moving average price of $68.59. The company has a quick ratio of 0.29, a current ratio of 1.22 and a debt-to-equity ratio of 0.70.

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.