Advance Auto Parts (NYSE:AAP) Shares Up 8.5% – Here’s Why

Advance Auto Parts, Inc. (NYSE:AAP)’s stock price shot up 8.5% during trading on Monday . The company traded as high as $50.89 and last traded at $51.0230. 158,435 shares were traded during trading, a decline of 92% from the average session volume of 1,965,031 shares. The stock had previously closed at $47.04.

Analyst Ratings Changes

A number of analysts recently weighed in on AAP shares. TD Cowen reissued a “hold” rating on shares of Advance Auto Parts in a research note on Tuesday, February 17th. Citigroup upgraded shares of Advance Auto Parts from a “hold” rating to a “buy” rating in a research note on Wednesday, January 21st. Truist Financial lifted 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. Roth Mkm reissued a “neutral” rating and issued a $57.00 target price on shares of Advance Auto Parts in a report on Thursday, February 19th. Finally, Morgan Stanley set a $60.00 target price on Advance Auto Parts in a research report on Tuesday, February 17th. Two equities research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Advance Auto Parts presently has a consensus rating of “Reduce” and an average target price of $52.93.

Advance Auto Parts Stock Up 7.1%

The stock has a market capitalization of $3.03 billion, a P/E ratio of 69.07, a P/E/G ratio of 0.63 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. The firm’s fifty day moving average is $50.91 and its 200-day moving average is $51.34.

Advance Auto Parts (NYSE:AAP) last issued its quarterly earnings data on Friday, February 13th. The company reported $0.86 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.45. The firm had revenue of $1.97 billion for the quarter, compared to analysts’ expectations 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 period in the prior year, the firm earned ($10.16) earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. As a group, equities research analysts predict that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current year.

Advance Auto Parts Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis 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%.

Hedge Funds Weigh In On Advance Auto Parts

A number of institutional investors and hedge funds have recently bought and sold shares of AAP. Salomon & Ludwin LLC bought a new stake in shares of Advance Auto Parts during the third quarter worth $26,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Advance Auto Parts in the third quarter valued at about $31,000. AlphaCore Capital LLC lifted its position in Advance Auto Parts by 6,288.9% during the 3rd quarter. AlphaCore Capital LLC now owns 575 shares of the company’s stock worth $35,000 after buying an additional 566 shares in the last quarter. Farther Finance Advisors LLC lifted its position in Advance Auto Parts by 198.0% during the 3rd quarter. Farther Finance Advisors LLC now owns 751 shares of the company’s stock worth $46,000 after buying an additional 499 shares in the last quarter. Finally, Atlantic Union Bankshares Corp bought a new stake in Advance Auto Parts during the 3rd quarter worth about $52,000. Institutional investors and hedge funds 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.