Advance Auto Parts (NYSE:AAP) Trading Down 5% – What’s Next?

Advance Auto Parts, Inc. (NYSE:AAP) dropped 5% during mid-day trading on Monday . The stock traded as low as $46.77 and last traded at $46.23. Approximately 111,573 shares were traded during mid-day trading, a decline of 95% from the average daily volume of 2,420,844 shares. The stock had previously closed at $48.67.

Analysts Set New Price Targets

Several analysts have recently commented on AAP shares. Mizuho increased their price objective on Advance Auto Parts from $44.00 to $54.00 and gave the company a “neutral” rating in a report on Friday, August 29th. BMO Capital Markets reaffirmed a “market perform” rating and set a $55.00 target price on shares of Advance Auto Parts in a research report on Friday, October 31st. Weiss Ratings reissued a “sell (d)” rating on shares of Advance Auto Parts in a report on Wednesday, October 8th. JPMorgan Chase & Co. boosted their price target on Advance Auto Parts from $44.00 to $62.00 and gave the stock a “neutral” rating in a research note on Friday, October 31st. Finally, Evercore ISI increased their price objective on shares of Advance Auto Parts from $56.00 to $58.00 and gave the company an “in-line” rating in a research report on Tuesday, August 12th. One equities research analyst has rated the stock with a Buy rating, twenty have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, Advance Auto Parts has an average rating of “Reduce” and an average price target of $51.78.

Advance Auto Parts Stock Performance

The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.49 and a current ratio of 1.27. The firm’s 50 day moving average is $56.85 and its 200-day moving average is $52.42. The stock has a market capitalization of $2.85 billion, a price-to-earnings ratio of -7.44 and a beta of 1.06.

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

Advance Auto Parts Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 23rd. Shareholders of record on Friday, January 9th will be given a dividend of $0.25 per share. The ex-dividend date is Friday, January 9th. This represents a $1.00 dividend on an annualized basis and a yield of 2.1%. Advance Auto Parts’s dividend payout ratio is currently -15.90%.

Institutional Investors Weigh In On Advance Auto Parts

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Teacher Retirement System of Texas purchased a new position in Advance Auto Parts during the first quarter valued at $342,000. Principal Financial Group Inc. raised its position in shares of Advance Auto Parts by 2.4% during the 1st quarter. Principal Financial Group Inc. now owns 294,537 shares of the company’s stock worth $11,549,000 after purchasing an additional 6,805 shares during the last quarter. Stratos Wealth Partners LTD. lifted its stake in Advance Auto Parts by 6.4% in the 1st quarter. Stratos Wealth Partners LTD. now owns 9,811 shares of the company’s stock valued at $385,000 after buying an additional 588 shares in the last quarter. Nisa Investment Advisors LLC boosted its holdings in Advance Auto Parts by 22.3% in the 1st quarter. Nisa Investment Advisors LLC now owns 24,088 shares of the company’s stock worth $944,000 after buying an additional 4,399 shares during the last quarter. Finally, New York State Common Retirement Fund increased its stake in Advance Auto Parts by 22.2% during the 1st quarter. New York State Common Retirement Fund now owns 46,558 shares of the company’s stock worth $1,826,000 after buying an additional 8,452 shares in the last quarter. Hedge funds and other institutional investors own 88.70% of the company’s stock.

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.