Advance Auto Parts (NYSE:AAP) Shares Gap Down – Here’s What Happened

Shares of Advance Auto Parts, Inc. (NYSE:AAP) gapped down before the market opened on Thursday . The stock had previously closed at $56.18, but opened at $46.85. Advance Auto Parts shares last traded at $44.6780, with a volume of 2,118,922 shares traded.

Key Advance Auto Parts News

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

• Positive Sentiment: Adjusted earnings were $1.03 per share, above the $0.81 analyst consensus and up from $0.69 a year earlier. Gross profit improved to $923 million, or 46.2% of sales, from 43.5% last year, while operating income rose to $101 million from $22 million. Advance Auto Parts Q2 Earnings Surpass Estimates
• Positive Sentiment: Advance Auto Parts reduced approximately $30 million of debt during the quarter, bringing net leverage down to 2.1 times from 2.4 times in the first quarter, which supports its balance-sheet improvement efforts. Advance Auto Parts Reports Second-Quarter Profit
• Neutral Sentiment: Management maintained full-year revenue guidance of approximately $8.485 billion to $8.575 billion, broadly in line with expectations. Full-year EPS guidance of $2.60 to $3.30 brackets the $2.94 consensus, leaving investors focused on where results land within the wide range. Advance Auto Parts Reports Second-Quarter 2026 Results
• Negative Sentiment: Comparable-store sales fell 0.5% and quarterly revenue of roughly $2.0 billion missed the $2.04 billion consensus. Reports attributed the sales pressure to constrained consumer spending, raising concerns about demand growth and the durability of the earnings improvement. Advance Auto Parts Stock After Earnings

Wall Street Analyst Weigh In

A number of research firms have commented on AAP. Wells Fargo & Company increased their price target on Advance Auto Parts from $50.00 to $60.00 and gave the company an “equal weight” rating in a research note on Friday, May 22nd. UBS Group upped their price objective on shares of Advance Auto Parts from $60.00 to $65.00 and gave the company a “neutral” rating in a report on Friday, May 22nd. Royal Bank Of Canada lifted their target price on shares of Advance Auto Parts from $65.00 to $67.00 and gave the stock a “sector perform” rating in a research note on Thursday, August 13th. Evercore set a $65.00 target price on shares of Advance Auto Parts in a research report on Tuesday, August 4th. Finally, Mizuho upped their price target on shares of Advance Auto Parts from $54.00 to $58.00 and gave the company a “neutral” rating in a research note on Tuesday, May 26th. Two investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $58.91.

Advance Auto Parts Price Performance

The stock has a fifty day moving average of $57.30 and a 200 day moving average of $55.47. The stock has a market cap of $2.62 billion, a price-to-earnings ratio of 60.22, a P/E/G ratio of 0.94 and a beta of 1.03. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.85.

Advance Auto Parts (NYSE:AAP) last issued its quarterly earnings results on Thursday, August 20th. The company reported $1.03 earnings per share for the quarter, topping the consensus estimate of $0.81 by $0.22. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The company had revenue of $2 billion for the quarter, compared to the consensus estimate of $2.04 billion. During the same quarter in the prior year, the company earned $0.69 EPS. Advance Auto Parts’s quarterly revenue was down .5% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, analysts expect that Advance Auto Parts, Inc. will post 2.94 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AAP. Royal Bank of Canada lifted its position in Advance Auto Parts by 107.2% during the first quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock valued at $3,119,000 after purchasing an additional 41,157 shares during the period. Goldman Sachs Group Inc. grew its position in Advance Auto Parts by 327.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company’s stock worth $14,230,000 after purchasing an additional 278,066 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Advance Auto Parts by 14.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company’s stock valued at $7,096,000 after buying an additional 23,018 shares during the last quarter. Hsbc Holdings PLC raised its stake in shares of Advance Auto Parts by 3.1% during the 2nd quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock valued at $293,000 after buying an additional 191 shares during the last quarter. Finally, Baird Financial Group Inc. lifted its holdings in shares of Advance Auto Parts by 2.7% in the 2nd quarter. Baird Financial Group Inc. now owns 56,782 shares of the company’s stock valued at $2,640,000 after buying an additional 1,515 shares during the period. 88.70% of the stock is currently owned by institutional investors and hedge funds.

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.