Advance Auto Parts, Inc. (NYSE:AAP) Given Consensus Recommendation of “Reduce” by Brokerages

Shares of Advance Auto Parts, Inc. (NYSE:AAP) have been assigned a consensus rating of “Reduce” from the twenty-three analysts that are covering the firm, MarketBeat Ratings reports. Three analysts have rated the stock with a sell recommendation, nineteen have issued a hold recommendation and one has issued a buy recommendation on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $50.9837.

Several analysts have recently weighed in on AAP shares. UBS Group set a $40.00 target price on Advance Auto Parts in a research report on Thursday, October 30th. Citigroup decreased 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. Weiss Ratings reissued a “sell (d)” rating on shares of Advance Auto Parts in a research report on Wednesday, October 8th. Morgan Stanley dropped their target price on shares of Advance Auto Parts from $60.00 to $55.00 and set an “equal weight” rating on the stock in a research note on Friday, October 31st. Finally, JPMorgan Chase & Co. raised their target price on shares of Advance Auto Parts from $44.00 to $62.00 and gave the stock a “neutral” rating in a research report on Friday, October 31st.

Advance Auto Parts Stock Up 3.2%

Shares of NYSE:AAP opened at $43.72 on Tuesday. The firm has a market capitalization of $2.62 billion, a PE ratio of -6.95 and a beta of 1.14. The business has a 50 day simple moving average of $46.45 and a two-hundred day simple moving average of $53.62. Advance Auto Parts has a 1 year low of $28.89 and a 1 year high of $70.00. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.73 and a quick ratio of 0.88.

Advance Auto Parts (NYSE:AAP) last issued its quarterly earnings results on Thursday, October 30th. The company reported $0.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.74 by $0.18. Advance Auto Parts had a positive return on equity of 0.64% and a negative net margin of 4.37%.The firm had revenue of $2.04 billion during the quarter, compared to analyst estimates of $2.02 billion. During the same period last year, the company earned ($0.04) EPS. Advance Auto Parts’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. On average, equities analysts predict that Advance Auto Parts will post -0.46 EPS for the current year.

Advance Auto Parts Announces Dividend

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 issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.3%. The ex-dividend date is Friday, January 9th. Advance Auto Parts’s dividend payout ratio (DPR) is presently -15.90%.

Insiders Place Their Bets

In other Advance Auto Parts news, EVP Kristen L. Soler sold 7,662 shares of the company’s stock in a transaction on Thursday, November 13th. The stock was sold at an average price of $51.00, for a total value of $390,762.00. Following the completion of the sale, the executive vice president directly owned 23,165 shares in the company, valued at approximately $1,181,415. This represents a 24.85% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.35% of the stock is currently owned by company insiders.

Institutional Trading of Advance Auto Parts

Several institutional investors and hedge funds have recently made changes to their positions in the company. Pzena Investment Management LLC grew its holdings in Advance Auto Parts by 1.9% during the 2nd quarter. Pzena Investment Management LLC now owns 4,394,964 shares of the company’s stock worth $204,322,000 after acquiring an additional 82,456 shares in the last quarter. Federated Hermes Inc. lifted its position in shares of Advance Auto Parts by 12.8% in the 3rd quarter. Federated Hermes Inc. now owns 2,694,027 shares of the company’s stock worth $165,413,000 after purchasing an additional 306,702 shares during the period. State Street Corp lifted its position in shares of Advance Auto Parts by 13.5% in the 2nd quarter. State Street Corp now owns 2,406,039 shares of the company’s stock worth $111,857,000 after purchasing an additional 286,148 shares during the period. American Century Companies Inc. boosted its stake in shares of Advance Auto Parts by 559.0% during the third quarter. American Century Companies Inc. now owns 1,519,591 shares of the company’s stock valued at $93,303,000 after purchasing an additional 1,288,986 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in Advance Auto Parts by 48.4% during the second quarter. Geode Capital Management LLC now owns 1,416,636 shares of the company’s stock valued at $65,867,000 after buying an additional 461,761 shares during the period. 88.70% of the stock is currently owned by institutional investors.

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.