Stock Traders Buy High Volume of Advance Auto Parts Call Options (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) was the recipient of unusually large options trading on Thursday. Traders purchased 13,787 call options on the stock. This represents an increase of approximately 85% compared to the average volume of 7,465 call options.

Institutional Investors Weigh In On Advance Auto Parts

A number of large investors have recently added to or reduced their stakes in the company. Allworth Financial LP bought a new stake in Advance Auto Parts during the second quarter worth about $25,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Advance Auto Parts during the 3rd quarter valued at about $31,000. State of Wyoming bought a new position in shares of Advance Auto Parts during the 2nd quarter valued at about $34,000. AlphaCore Capital LLC raised its holdings in shares of Advance Auto Parts by 53.6% during the 4th quarter. AlphaCore Capital LLC now owns 883 shares of the company’s stock valued at $35,000 after buying an additional 308 shares in the last quarter. Finally, Hantz Financial Services Inc. raised its holdings in shares of Advance Auto Parts by 184.5% during the 4th quarter. Hantz Financial Services Inc. now owns 919 shares of the company’s stock valued at $36,000 after buying an additional 596 shares in the last quarter. Hedge funds and other institutional investors own 88.70% of the company’s stock.

Analysts Set New Price Targets

AAP has been the subject of several recent research reports. Citigroup reiterated a “neutral” rating on shares of Advance Auto Parts in a research report on Thursday. Royal Bank Of Canada increased their price objective on Advance Auto Parts from $65.00 to $67.00 and gave the stock a “sector perform” rating in a report on Thursday. BMO Capital Markets lifted their target price on Advance Auto Parts from $60.00 to $65.00 and gave the company a “market perform” rating in a report on Friday, May 22nd. TD Cowen reaffirmed a “hold” rating on shares of Advance Auto Parts in a report on Friday, May 22nd. Finally, Wells Fargo & Company upped their price target on Advance Auto Parts from $50.00 to $60.00 and gave the company an “equal weight” rating in a research report on Friday, May 22nd. Two research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $59.09.

Advance Auto Parts Price Performance

AAP traded up $1.96 on Thursday, reaching $55.48. The company had a trading volume of 362,906 shares, compared to its average volume of 1,796,975. Advance Auto Parts has a 52-week low of $37.89 and a 52-week high of $65.21. The company has a market cap of $3.35 billion, a price-to-earnings ratio of 77.08, a P/E/G ratio of 0.87 and a beta of 1.03. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.85 and a current ratio of 1.78. The business has a 50 day simple moving average of $57.43 and a 200 day simple moving average of $55.17.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings results on Thursday, May 21st. The company reported $0.77 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.38. The business had revenue of $2.61 billion during the quarter, compared to analysts’ expectations of $2.05 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The business’s quarterly revenue was up 1.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.40 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. As a group, sell-side analysts anticipate that Advance Auto Parts will post 2.94 EPS for the current year.

Advance Auto Parts Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were given a $0.25 dividend. The ex-dividend date was Friday, July 10th. This represents a $1.00 annualized dividend and a yield of 1.8%. Advance Auto Parts’s payout ratio is 138.89%.

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.