Bank of America Begins Coverage on Advance Auto Parts (NYSE:AAP)

Research analysts at Bank of America initiated coverage on shares of Advance Auto Parts (NYSE:AAP) in a research note issued on Monday. The firm set an “underperform” rating and a $42.00 price target on the stock. Bank of America‘s price target indicates a potential downside of 11.04% from the stock’s current price.

Several other research firms also recently issued reports on AAP. Guggenheim reiterated a “neutral” rating on shares of Advance Auto Parts in a report on Friday, August 21st. Royal Bank Of Canada dropped their price objective on shares of Advance Auto Parts from $52.00 to $49.00 and set a “sector perform” rating on the stock in a research report on Friday. UBS Group dropped their price target on shares of Advance Auto Parts from $65.00 to $47.00 and set a “neutral” rating on the stock in a research note on Friday, August 21st. DA Davidson reduced their price target on Advance Auto Parts from $58.00 to $48.00 and set a “neutral” rating on the stock in a research report on Friday, August 21st. Finally, The Goldman Sachs Group set a $49.00 target price on shares of Advance Auto Parts in a report on Friday, August 21st. Two research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, Advance Auto Parts has an average rating of “Reduce” and an average price target of $47.61.

Advance Auto Parts Stock Performance

Shares of NYSE AAP traded up $0.29 during midday trading on Monday, reaching $47.21. The company had a trading volume of 184,706 shares, compared to its average volume of 1,854,809. The company has a current ratio of 1.75, a quick ratio of 0.85 and a debt-to-equity ratio of 1.50. Advance Auto Parts has a 1 year low of $37.89 and a 1 year high of $65.20. The stock has a market cap of $2.85 billion, a P/E ratio of 34.46, a P/E/G ratio of 0.76 and a beta of 1.07. The business’s 50-day simple moving average is $43.42 and its 200 day simple moving average is $52.05.

Advance Auto Parts (NYSE:AAP) last posted its earnings results on Thursday, August 20th. The company reported $1.03 EPS for the quarter, beating analysts’ consensus estimates of $0.81 by $0.22. Advance Auto Parts had a return on equity of 9.84% and a net margin of 0.97%. The firm had revenue of $2 billion for the quarter, compared to analysts’ expectations of $2.04 billion. During the same period last year, the firm earned $0.69 EPS. The company’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 forecast that Advance Auto Parts will post 2.95 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Advance Auto Parts

Hedge funds and other institutional 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 2nd quarter worth approximately $25,000. State of Wyoming acquired a new stake in Advance Auto Parts during the 2nd quarter worth $34,000. PNC Financial Services Group Inc. boosted its holdings in Advance Auto Parts by 9.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 2,224 shares of the company’s stock valued at $117,000 after purchasing an additional 200 shares in the last quarter. Nykredit A S acquired a new position in shares of Advance Auto Parts in the second quarter worth $155,000. Finally, Blue Trust Inc. boosted its position in Advance Auto Parts by 29.8% in the 1st quarter. Blue Trust Inc. now owns 3,729 shares of the company’s stock valued at $197,000 after buying an additional 856 shares during the last quarter. 88.70% of the stock is owned by hedge funds and other institutional investors.

About Advance Auto Parts

Advance Auto Parts, Inc is a specialty retailer and distributor of automotive aftermarket parts, accessories, and maintenance products. The company serves both do-it-yourself customers and professional repair shops, offering products such as replacement parts, batteries, engine and drivetrain components, filters, fluids, tools, and other automotive supplies.

The company operates through a network of stores, distribution centers, and online channels under the Advance Auto Parts and Carquest brands.