Advance Auto Parts, Inc. (NYSE:AAP) Given Average Rating of “Reduce” by Brokerages

Advance Auto Parts, Inc. (NYSE:AAP) has been assigned a consensus recommendation of “Reduce” from the twenty-two research firms that are presently covering the stock, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell recommendation, seventeen have issued a hold recommendation and two have issued a buy recommendation on the company. The average 1 year target price among brokerages that have covered the stock in the last year is $52.9311.

A number of equities research analysts have commented on the company. Royal Bank Of Canada raised their price target on Advance Auto Parts from $57.00 to $63.00 and gave the stock a “sector perform” rating in a report on Tuesday, February 17th. Wells Fargo & Company upped their price objective on shares of Advance Auto Parts from $40.00 to $50.00 and gave the company an “equal weight” rating in a report on Wednesday, February 11th. Roth Mkm reaffirmed a “neutral” rating and issued a $57.00 price objective on shares of Advance Auto Parts in a research report on Thursday, February 19th. Northcoast Research upgraded shares of Advance Auto Parts from a “neutral” rating to a “buy” rating and set a $55.00 target price for the company in a research note on Wednesday, January 21st. Finally, BMO Capital Markets boosted their target price on shares of Advance Auto Parts from $55.00 to $60.00 and gave the stock a “market perform” rating in a research report on Tuesday, February 17th.

Advance Auto Parts Price Performance

Shares of AAP opened at $47.02 on Friday. The company has a 50 day moving average of $50.91 and a two-hundred day moving average of $51.40. The company has a quick ratio of 0.87, a current ratio of 1.75 and a debt-to-equity ratio of 1.55. Advance Auto Parts has a twelve month low of $28.89 and a twelve month high of $70.00. The company has a market cap of $2.83 billion, a price-to-earnings ratio of 64.41, a price-to-earnings-growth ratio of 0.63 and a beta of 1.11.

Advance Auto Parts (NYSE:AAP) last issued its quarterly earnings results on Friday, February 13th. The company reported $0.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.45. The business had revenue of $1.97 billion for the quarter, compared to the consensus estimate of $1.95 billion. Advance Auto Parts had a return on equity of 6.23% and a net margin of 0.51%.The business’s quarterly revenue was down 1.2% on a year-over-year basis. During the same period in the prior year, the firm posted ($10.16) earnings per share. 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 fiscal year.

Advance Auto Parts Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Stockholders of record on Friday, April 10th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, April 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.1%. Advance Auto Parts’s payout ratio is 136.99%.

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. Savoir Faire Capital Management L.P. lifted its holdings in shares of Advance Auto Parts by 11.4% during the third quarter. Savoir Faire Capital Management L.P. now owns 226,990 shares of the company’s stock worth $13,937,000 after purchasing an additional 23,172 shares during the period. Federated Hermes Inc. increased its holdings in Advance Auto Parts by 12.8% in the 3rd quarter. Federated Hermes Inc. now owns 2,694,027 shares of the company’s stock worth $165,413,000 after buying an additional 306,702 shares during the period. Parkwood LLC purchased a new position in Advance Auto Parts during the 2nd quarter worth approximately $16,922,000. JPMorgan Chase & Co. raised its position in Advance Auto Parts by 436.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 266,111 shares of the company’s stock worth $12,372,000 after buying an additional 216,504 shares during the last quarter. Finally, CSM Advisors LLC lifted its stake in Advance Auto Parts by 71.6% during the 3rd quarter. CSM Advisors LLC now owns 89,867 shares of the company’s stock valued at $5,517,000 after acquiring an additional 37,486 shares during the period. Hedge funds and other institutional investors own 88.70% of the company’s stock.

Advance Auto Parts Company Profile

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.