Advance Auto Parts Sees Unusually High Options Volume (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) was the target of some unusual options trading activity on Wednesday. Stock traders acquired 10,156 call options on the company. This represents an increase of 43% compared to the average volume of 7,114 call options.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors and hedge funds have recently modified their holdings of the stock. American Century Companies Inc. grew its holdings in Advance Auto Parts by 559.0% during the third quarter. American Century Companies Inc. now owns 1,519,591 shares of the company’s stock worth $93,303,000 after acquiring an additional 1,288,986 shares during the period. Price T Rowe Associates Inc. MD raised its position in Advance Auto Parts by 18.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company’s stock valued at $293,751,000 after acquiring an additional 1,190,094 shares in the last quarter. Federated Hermes Inc. lifted its holdings in Advance Auto Parts by 75.7% in the second quarter. Federated Hermes Inc. now owns 2,387,325 shares of the company’s stock valued at $110,987,000 after acquiring an additional 1,028,561 shares during the period. Maple Rock Capital Partners Inc. boosted its position in Advance Auto Parts by 508.2% in the 3rd quarter. Maple Rock Capital Partners Inc. now owns 951,790 shares of the company’s stock worth $58,440,000 after purchasing an additional 795,290 shares in the last quarter. Finally, Wellington Management Group LLP purchased a new stake in Advance Auto Parts in the 3rd quarter worth approximately $33,610,000. Institutional investors and hedge funds own 88.70% of the company’s stock.

Analysts Set New Price Targets

AAP has been the subject of several recent analyst reports. Royal Bank Of Canada boosted their price objective on shares of Advance Auto Parts from $57.00 to $63.00 and gave the stock a “sector perform” rating in a research note on Tuesday, February 17th. DA Davidson set a $58.00 target price on shares of Advance Auto Parts in a research note on Tuesday, February 17th. Wells Fargo & Company lifted their price target on shares of Advance Auto Parts from $40.00 to $50.00 and gave the stock an “equal weight” rating in a report on Wednesday, February 11th. UBS Group reaffirmed a “neutral” rating on shares of Advance Auto Parts in a research report on Monday, February 9th. Finally, Truist Financial increased their price objective on Advance Auto Parts from $48.00 to $57.00 and gave the company a “hold” rating in a report on Tuesday, February 17th. Two equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Advance Auto Parts presently has a consensus rating of “Reduce” and a consensus target price of $52.93.

Advance Auto Parts Stock Performance

Shares of NYSE AAP opened at $49.31 on Thursday. The company has a 50 day simple moving average of $50.72 and a two-hundred day simple moving average of $51.57. The stock has a market cap of $2.96 billion, a price-to-earnings ratio of 67.55, a PEG ratio of 0.69 and a beta of 1.11. The company has a current ratio of 1.75, a quick ratio of 0.87 and a debt-to-equity ratio of 1.55. Advance Auto Parts has a 12 month low of $28.89 and a 12 month high of $70.00.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings data on Friday, February 13th. The company reported $0.86 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.45. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The firm had revenue of $1.97 billion for the quarter, compared to analyst estimates of $1.95 billion. During the same quarter in the prior year, the business earned ($10.16) earnings per share. The business’s quarterly revenue was down 1.2% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. As a group, analysts predict that Advance Auto Parts will post -0.46 earnings per share for the current year.

Advance Auto Parts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, April 10th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend is Friday, April 10th. Advance Auto Parts’s dividend payout ratio (DPR) is currently 136.99%.

About Advance Auto Parts

Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.