Advance Auto Parts (NYSE:AAP) Shares Down 6.9% Following Analyst Downgrade

Advance Auto Parts, Inc. (NYSE:AAP)’s share price traded down 6.9% during trading on Friday after DA Davidson lowered their price target on the stock from $63.00 to $55.00. DA Davidson currently has a neutral rating on the stock. Advance Auto Parts traded as low as $47.19 and last traded at $47.2030. 316,815 shares traded hands during trading, a decline of 87% from the average session volume of 2,432,068 shares. The stock had previously closed at $50.70.

Several other brokerages have also commented on AAP. Mizuho raised their price target on Advance Auto Parts from $44.00 to $54.00 and gave the company a “neutral” rating in a research note on Friday, August 29th. BMO Capital Markets restated a “market perform” rating and set a $55.00 price target on shares of Advance Auto Parts in a research note on Friday. Weiss Ratings reiterated a “sell (d)” rating on shares of Advance Auto Parts in a research note on Wednesday, October 8th. Wells Fargo & Company lifted their target price on Advance Auto Parts from $45.00 to $50.00 and gave the company an “equal weight” rating in a research note on Friday, August 15th. Finally, Wolfe Research started coverage on Advance Auto Parts in a research note on Thursday, September 18th. They issued a “peer perform” rating on the stock. One research analyst has rated the stock with a Buy rating, nineteen have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Advance Auto Parts currently has a consensus rating of “Reduce” and a consensus target price of $51.78.

Institutional Investors Weigh In On Advance Auto Parts

A number of large investors have recently modified their holdings of the business. Amalgamated Bank grew its stake in shares of Advance Auto Parts by 1.1% during the third quarter. Amalgamated Bank now owns 17,270 shares of the company’s stock worth $1,060,000 after acquiring an additional 185 shares during the last quarter. Hsbc Holdings PLC grew its stake in shares of Advance Auto Parts by 3.1% during the second quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock worth $293,000 after acquiring an additional 191 shares during the last quarter. Rockefeller Capital Management L.P. grew its stake in shares of Advance Auto Parts by 2.0% during the second quarter. Rockefeller Capital Management L.P. now owns 14,535 shares of the company’s stock worth $676,000 after acquiring an additional 283 shares during the last quarter. KLP Kapitalforvaltning AS grew its stake in shares of Advance Auto Parts by 2.5% during the second quarter. KLP Kapitalforvaltning AS now owns 12,500 shares of the company’s stock worth $581,000 after acquiring an additional 300 shares during the last quarter. Finally, Capital Square LLC grew its stake in shares of Advance Auto Parts by 4.3% during the second quarter. Capital Square LLC now owns 7,265 shares of the company’s stock worth $338,000 after acquiring an additional 300 shares during the last quarter. Hedge funds and other institutional investors own 88.70% of the company’s stock.

Advance Auto Parts Price Performance

The firm has a market cap of $2.83 billion, a PE ratio of -7.40 and a beta of 1.08. The company has a quick ratio of 0.49, a current ratio of 1.27 and a debt-to-equity ratio of 0.68. The stock has a 50 day moving average price of $58.07 and a two-hundred day moving average price of $51.59.

Advance Auto Parts (NYSE:AAP) last issued its quarterly earnings results on Thursday, October 30th. The company reported $0.92 earnings per share for the quarter, topping analysts’ consensus estimates of $0.74 by $0.18. Advance Auto Parts had a negative return on equity of 1.97% and a negative net margin of 4.37%.The business had revenue of $2.04 billion for the quarter, compared to analyst estimates of $2.02 billion. During the same quarter in the previous year, the firm earned ($0.04) earnings per share. The company’s revenue was down 5.2% on a year-over-year basis. Advance Auto Parts has set its FY 2025 guidance at 1.750-1.850 EPS. As a group, equities analysts expect that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current year.

Advance Auto Parts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 23rd. Investors of record on Friday, January 9th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, January 9th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.1%. Advance Auto Parts’s payout ratio is -15.70%.

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.