Advance Auto Parts (NYSE:AAP) Trading Down 6.5% – Time to Sell?

Advance Auto Parts, Inc. (NYSE:AAP) shares traded down 6.5% during mid-day trading on Wednesday . The stock traded as low as $50.34 and last traded at $50.2670. 1,940,457 shares were traded during mid-day trading, a decline of 9% from the average session volume of 2,122,963 shares. The stock had previously closed at $53.78.

Analyst Ratings Changes

A number of equities research analysts have weighed in on AAP shares. JPMorgan Chase & Co. lifted their price target on shares of Advance Auto Parts from $44.00 to $62.00 and gave the company a “neutral” rating in a research report on Friday, October 31st. Citigroup raised shares of Advance Auto Parts from a “hold” rating to a “buy” rating in a research report on Wednesday, January 21st. BMO Capital Markets increased their price objective 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. Royal Bank Of Canada boosted their target price on Advance Auto Parts from $57.00 to $63.00 and gave the company a “sector perform” rating in a research report on Tuesday, February 17th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Advance Auto Parts in a research note on Wednesday, January 21st. Three 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’s stock. Based on data from MarketBeat, Advance Auto Parts presently has an average rating of “Hold” and an average target price of $53.03.

Advance Auto Parts Stock Performance

The company has a current ratio of 1.75, a quick ratio of 0.87 and a debt-to-equity ratio of 1.55. The company has a market capitalization of $3.03 billion, a price-to-earnings ratio of 69.01, a price-to-earnings-growth ratio of 0.75 and a beta of 1.14. The stock’s fifty day simple moving average is $47.09 and its 200-day simple moving average is $52.30.

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

Advance Auto Parts Dividend Announcement

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 issued a dividend of $0.25 per share. The ex-dividend date is Friday, April 10th. This represents a $1.00 annualized dividend and a yield of 2.0%. Advance Auto Parts’s dividend payout ratio is 136.99%.

Hedge Funds Weigh In On Advance Auto Parts

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD increased its stake in shares of 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 worth $293,751,000 after buying an additional 1,190,094 shares during the period. Federated Hermes Inc. lifted its stake in Advance Auto Parts by 4.4% in the fourth quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company’s stock worth $110,499,000 after acquiring an additional 117,648 shares during the last quarter. State Street Corp grew its holdings in Advance Auto Parts by 3.9% during the 4th quarter. State Street Corp now owns 2,499,981 shares of the company’s stock worth $98,249,000 after acquiring an additional 92,861 shares in the last quarter. American Century Companies Inc. increased its position in shares of Advance Auto Parts by 559.0% in the 3rd quarter. American Century Companies Inc. now owns 1,519,591 shares of the company’s stock valued at $93,303,000 after purchasing an additional 1,288,986 shares during the last quarter. Finally, Royce & Associates LP raised its holdings in shares of Advance Auto Parts by 30.5% in the 4th quarter. Royce & Associates LP now owns 1,478,633 shares of the company’s stock valued at $58,110,000 after purchasing an additional 345,217 shares in the last quarter. 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.