Advance Auto Parts (NYSE:AAP) Trading Down 4.9% – Here’s Why

Posted by Geri Gentry on May 24th, 2026

Advance Auto Parts, Inc. (NYSE:AAP – Get Free Report) was down 4.9% during trading on Friday . The company traded as low as $55.65 and last traded at $55.7750. Approximately 824,622 shares were traded during trading, a decline of 55% from the average daily volume of 1,827,023 shares. The stock had previously closed at $58.62.

Key Advance Auto Parts News

Here are the key news stories impacting Advance Auto Parts this week:

Positive Sentiment: Advance Auto Parts posted Q1 EPS of $0.77 versus $0.39 expected and revenue of $2.61 billion versus $2.57 billion expected, signaling a solid earnings beat. Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance
Positive Sentiment: Comparable store sales rose 3.5%, driven by strength in the Pro business and improving DIY demand, while gross margin and operating margin expanded sharply, supporting the recovery narrative. Advance Auto Parts Gets Sales Boost From Pro Business
Positive Sentiment: Several firms lifted price targets after the results, including Morgan Stanley, UBS, RBC, BMO Capital Markets, and Citigroup, reflecting improved sentiment around AAP’s recovery path. Advance Auto Parts Analysts Raise Their Forecasts Following Better-Than-Expected Q1 Results
Neutral Sentiment: Management reaffirmed full-year 2026 guidance rather than raising it, which may temper enthusiasm even after the strong quarter. Advance Auto Q1 Earnings Beat Estimates on Strong Comps Growth
Neutral Sentiment: Shareholders approved directors and governance matters at the annual meeting, a routine corporate update with limited immediate stock impact. Advance Auto Parts Shareholders Approve Directors and Governance Matters

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on AAP shares. Citigroup increased their target price on Advance Auto Parts from $57.00 to $60.00 and gave the company a “neutral” rating in a research report on Friday. Morgan Stanley increased their target price on Advance Auto Parts from $60.00 to $65.00 and gave the company an “equal weight” rating in a research report on Friday. Wells Fargo & Company increased their target price on Advance Auto Parts from $50.00 to $60.00 and gave the company an “equal weight” rating in a research report on Friday. TD Cowen reiterated a “hold” rating on shares of Advance Auto Parts in a research report on Friday. Finally, The Goldman Sachs Group increased their price target on Advance Auto Parts from $49.00 to $54.00 and gave the company a “sell” rating in a report on Friday. Two analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $57.15.

Read Our Latest Research Report on Advance Auto Parts

Advance Auto Parts Stock Down 1.7%

The company has a fifty day moving average of $53.93 and a two-hundred day moving average of $50.42. The company has a market cap of $3.48 billion, a PE ratio of 80.04, a price-to-earnings-growth ratio of 1.02 and a beta of 1.06. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.87 and a current ratio of 1.78.

Advance Auto Parts (NYSE:AAP – Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.38. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.The company had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.05 billion. During the same quarter in the prior year, the firm posted $0.40 EPS. Advance Auto Parts’s quarterly revenue was up 1.2% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. As a group, analysts anticipate that Advance Auto Parts, Inc. will post 2.77 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a $0.25 dividend. The ex-dividend date is Friday, July 10th. This represents a $1.00 dividend on an annualized basis and a yield of 1.7%. Advance Auto Parts’s dividend payout ratio (DPR) is presently 136.99%.

Institutional Trading of Advance Auto Parts

A number of hedge funds and other institutional investors have recently bought and sold shares of AAP. Caitong International Asset Management Co. Ltd purchased a new stake in Advance Auto Parts in the third quarter worth $31,000. AlphaCore Capital LLC increased its stake in Advance Auto Parts by 6,288.9% in the third quarter. AlphaCore Capital LLC now owns 575 shares of the company’s stock worth $35,000 after purchasing an additional 566 shares during the period. Hantz Financial Services Inc. increased its stake in Advance Auto Parts by 184.5% in the fourth quarter. Hantz Financial Services Inc. now owns 919 shares of the company’s stock worth $36,000 after purchasing an additional 596 shares during the period. Smartleaf Asset Management LLC increased its stake in Advance Auto Parts by 290.3% in the second quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock worth $43,000 after purchasing an additional 688 shares during the period. Finally, Atlantic Union Bankshares Corp purchased a new stake in Advance Auto Parts in the third quarter worth $52,000. Hedge funds and other institutional investors own 88.70% of the company’s stock.

About Advance Auto Parts

(Get Free Report)

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.