Advance Auto Parts (NYSE:AAP) Stock Price Down 6.4% on Analyst Downgrade

Shares of Advance Auto Parts, Inc. (NYSE:AAP) were down 6.4% during mid-day trading on Tuesday after TD Cowen lowered their price target on the stock from $62.00 to $46.00. TD Cowen currently has a hold rating on the stock. Advance Auto Parts traded as low as $40.42 and last traded at $40.4410. Approximately 331,861 shares changed hands during trading, a decline of 81% from the average daily volume of 1,763,875 shares. The stock had previously closed at $43.20.

A number of other equities analysts have also recently weighed in on AAP. BMO Capital Markets reissued a “market perform” rating and set a $55.00 price objective on shares of Advance Auto Parts in a report on Friday, October 31st. Roth Capital reissued a “neutral” rating and set a $55.00 price target (up from $50.00) on shares of Advance Auto Parts in a research note on Monday, October 27th. Citigroup lowered their price objective on shares of Advance Auto Parts from $60.00 to $55.00 and set a “neutral” rating for the company in a report on Friday, October 31st. UBS Group set a $40.00 price objective on shares of Advance Auto Parts in a research note on Thursday, October 30th. Finally, Cowen reiterated a “hold” rating on shares of Advance Auto Parts in a research report on Tuesday. One equities research analyst has rated the stock with a Buy rating, twenty have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $49.83.

Insiders Place Their Bets

In other Advance Auto Parts news, EVP Kristen L. Soler sold 7,662 shares of the stock in a transaction on Thursday, November 13th. The shares were sold at an average price of $51.00, for a total transaction of $390,762.00. Following the completion of the sale, the executive vice president owned 23,165 shares of the company’s stock, valued at $1,181,415. This represents a 24.85% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.67% of the stock is owned by insiders.

Institutional Trading of Advance Auto Parts

Large investors have recently modified their holdings of the business. Salomon & Ludwin LLC bought a new position in Advance Auto Parts during the 3rd quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Advance Auto Parts during the third quarter valued at approximately $31,000. REAP Financial Group LLC purchased a new stake in Advance Auto Parts in the second quarter worth $26,000. AlphaCore Capital LLC lifted 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 acquiring an additional 566 shares during the period. Finally, Farther Finance Advisors LLC boosted its holdings in Advance Auto Parts by 198.0% in the third quarter. Farther Finance Advisors LLC now owns 751 shares of the company’s stock valued at $46,000 after acquiring an additional 499 shares in the last quarter. 88.70% of the stock is owned by institutional investors.

Advance Auto Parts Trading Down 4.3%

The company has a quick ratio of 0.88, a current ratio of 1.73 and a debt-to-equity ratio of 1.55. The firm’s fifty day moving average is $45.84 and its two-hundred day moving average is $53.45. The firm has a market cap of $2.48 billion, a P/E ratio of -6.57 and a beta of 1.14.

Advance Auto Parts (NYSE:AAP) last posted its earnings results on Thursday, October 30th. The company reported $0.92 EPS for the quarter, topping the consensus estimate of $0.74 by $0.18. Advance Auto Parts had a negative net margin of 4.37% and a positive return on equity of 0.64%. The firm had revenue of $2.04 billion during the quarter, compared to analysts’ expectations of $2.02 billion. During the same period last year, the company posted ($0.04) EPS. The company’s quarterly revenue was down 5.2% compared to the same quarter last year. Advance Auto Parts has set its FY 2025 guidance at 1.750-1.850 EPS. Analysts predict that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 23rd. Shareholders of record on Friday, January 9th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Friday, January 9th. Advance Auto Parts’s payout ratio is presently -15.90%.

About Advance Auto Parts

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.