Citigroup Cuts Advance Auto Parts (NYSE:AAP) Price Target to $45.00

Advance Auto Parts (NYSE:AAP) had its price target cut by Citigroup from $57.00 to $45.00 in a report issued on Friday,Benzinga reports. They currently have a neutral rating on the stock.

A number of other analysts also recently issued reports on the stock. Morgan Stanley reduced their price target on shares of Advance Auto Parts from $65.00 to $52.00 and set an “equal weight” rating on the stock in a report on Friday. Evercore set a $65.00 price objective on Advance Auto Parts in a research report on Tuesday, August 4th. DA Davidson reduced their target price on Advance Auto Parts from $58.00 to $48.00 and set a “neutral” rating on the stock in a report on Friday. The Goldman Sachs Group set a $49.00 target price on Advance Auto Parts in a research report on Friday. Finally, Mizuho increased their price target on 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 analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $50.80.

Advance Auto Parts Trading Up 0.6%

Shares of AAP opened at $42.85 on Friday. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.75 and a quick ratio of 0.85. Advance Auto Parts has a 1 year low of $37.89 and a 1 year high of $65.21. The company has a 50 day simple moving average of $56.58 and a two-hundred day simple moving average of $55.39. The firm has a market cap of $2.59 billion, a P/E ratio of 31.28, a price-to-earnings-growth ratio of 0.69 and a beta of 1.03.

Advance Auto Parts (NYSE:AAP) last released its earnings results on Thursday, August 20th. The company reported $1.03 EPS for the quarter, topping the consensus estimate of $0.81 by $0.22. Advance Auto Parts had a net margin of 0.97% and a return on equity of 9.84%. The firm had revenue of $2 billion for the quarter, compared to the consensus estimate of $2.04 billion. During the same quarter in the previous year, the firm earned $0.69 earnings per share. The company’s quarterly revenue was down .5% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, equities analysts expect that Advance Auto Parts will post 2.97 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $1.00 dividend on an annualized basis and a yield of 2.3%. Advance Auto Parts’s dividend payout ratio is presently 72.99%.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors have recently bought and sold shares of the business. Royal Bank of Canada increased its holdings in shares of Advance Auto Parts by 107.2% in the 1st quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock worth $3,119,000 after buying an additional 41,157 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Advance Auto Parts by 327.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company’s stock valued at $14,230,000 after acquiring an additional 278,066 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Advance Auto Parts by 14.6% in 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 acquiring an additional 23,018 shares during the last quarter. Hsbc Holdings PLC lifted its holdings in shares of Advance Auto Parts by 3.1% in the 2nd quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock valued at $293,000 after acquiring an additional 191 shares during the last quarter. Finally, Baird Financial Group Inc. grew its position in Advance Auto Parts by 2.7% in the second quarter. Baird Financial Group Inc. now owns 56,782 shares of the company’s stock worth $2,640,000 after acquiring an additional 1,515 shares in the last quarter. Institutional investors own 88.70% of the company’s stock.

Key Stories Impacting Advance Auto Parts

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

• Positive Sentiment: Adjusted earnings beat expectations. Advance Auto Parts reported second-quarter adjusted EPS of $1.03, above the $0.81 consensus estimate and up from $0.69 a year earlier. The company also raised its FY2026 adjusted EPS guidance to $2.60–$3.30, while maintaining its sales outlook. Advance Auto Parts Analysts Cut Their Forecasts After Q2 Results
• Positive Sentiment: Margins and balance-sheet metrics improved. A $26 million tariff refund helped support quarterly margins, while gross margin expanded to 46.2% from 43.5% a year earlier. Advance also reduced net leverage to 2.1x from 2.4x and repaid approximately $30 million of debt. Advance Auto Parts Rebounds After Tariff Refund Boosts Q2 Margins
• Neutral Sentiment: Analyst targets remain mixed. JPMorgan lowered its target to $55, Morgan Stanley and RBC each moved to $52, and Citigroup cut its target to $45; all maintained neutral or equivalent ratings. These targets imply upside from recent levels, but Goldman Sachs reduced its target to $40 and assigned a Sell rating. Benzinga analyst updates
• Neutral Sentiment: The dividend provides shareholder support. Advance Auto Parts declared a quarterly dividend of $0.25 per share, with payment scheduled for October 23 to shareholders of record on October 9. The dividend yield is approximately 2.4%.
• Negative Sentiment: Sales momentum remains the main concern. Second-quarter revenue of approximately $2.0 billion missed estimates near $2.04 billion, while comparable-store sales declined 0.5%. Weak demand from cost-conscious, lower-income do-it-yourself customers and a volatile spending environment raised concerns about the pace of sales acceleration and required reinvestment. Advance Auto Parts Posts Disappointing Q2 Comparable Sales
• Negative Sentiment: Broad target reductions underscore execution risk. Goldman Sachs’s Sell rating and Bank of America’s reiterated Sell/Underperform view highlight concerns over weak DIY demand and the company’s ability to execute its turnaround, even after the earnings beat. Bank of America Reiterates Sell Rating

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.