Advance Auto Parts (NYSE:AAP) Stock Price Down 6.6% – Here’s Why

Advance Auto Parts, Inc. (NYSE:AAP)’s stock price dropped 6.6% on Monday . The company traded as low as $56.75 and last traded at $57.4610. Approximately 269,396 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 1,846,568 shares. The stock had previously closed at $61.53.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on AAP shares. The Goldman Sachs Group lifted their price target on shares of Advance Auto Parts from $49.00 to $54.00 and gave the stock a “sell” rating in a research note on Friday, May 22nd. Deutsche Bank Aktiengesellschaft upgraded shares of Advance Auto Parts to a “buy” rating in a report on Friday, May 22nd. Wells Fargo & Company lifted their target price on shares of Advance Auto Parts from $50.00 to $60.00 and gave the stock an “equal weight” rating in a research report on Friday, May 22nd. Citigroup increased their price target on Advance Auto Parts from $57.00 to $60.00 and gave the company a “neutral” rating in a report on Friday, May 22nd. Finally, Truist Financial raised their price target on Advance Auto Parts from $55.00 to $62.00 and gave the stock a “hold” rating in a research note on Thursday, May 21st. Two investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $58.66.

Advance Auto Parts Price Performance

The company has a market capitalization of $3.50 billion, a P/E ratio of 80.72, a price-to-earnings-growth ratio of 1.01 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. The firm’s 50-day moving average is $57.39 and its 200-day moving average is $52.40.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings results on Thursday, May 21st. The company reported $0.77 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.38. The business had revenue of $2.61 billion for the quarter, compared to the consensus estimate of $2.05 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The company’s quarterly revenue was up 1.2% on a year-over-year basis. During the same period last year, the firm earned $0.40 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. Analysts predict that Advance Auto Parts, Inc. will post 2.94 EPS for the current fiscal year.

Advance Auto Parts Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Friday, July 10th. Advance Auto Parts’s dividend payout ratio (DPR) is currently 138.89%.

Institutional Trading of Advance Auto Parts

Hedge funds have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd purchased a new stake in Advance Auto Parts in the third quarter worth about $31,000. AlphaCore Capital LLC grew its stake 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 acquiring an additional 308 shares during the period. Hantz Financial Services Inc. grew its stake 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 acquiring an additional 596 shares during the period. Smartleaf Asset Management LLC increased its holdings in Advance Auto Parts by 290.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock worth $43,000 after acquiring an additional 688 shares in the last quarter. Finally, Leonteq Securities AG purchased a new stake in Advance Auto Parts in the 4th quarter worth approximately $55,000. Institutional investors own 88.70% of the company’s stock.

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.