Advance Auto Parts Target of Unusually Large Options Trading (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) was the recipient of some unusual options trading on Wednesday. Traders acquired 10,156 call options on the company. This is an increase of 43% compared to the typical daily volume of 7,114 call options.

Advance Auto Parts Price Performance

Shares of AAP stock traded down $1.18 during mid-day trading on Wednesday, hitting $50.74. The company had a trading volume of 526,529 shares, compared to its average volume of 1,963,754. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.75 and a quick ratio of 0.87. The stock’s 50 day moving average price is $50.56 and its 200-day moving average price is $51.59. Advance Auto Parts has a 52-week low of $28.89 and a 52-week high of $70.00. The company has a market capitalization of $3.05 billion, a P/E ratio of 69.45, a P/E/G ratio of 0.71 and a beta of 1.11.

Advance Auto Parts (NYSE:AAP) last posted its earnings results on Friday, February 13th. The company reported $0.86 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.45. The company had revenue of $1.97 billion during the quarter, compared to analysts’ expectations of $1.95 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. Advance Auto Parts’s quarterly revenue was down 1.2% on a year-over-year basis. During the same period last year, the company posted ($10.16) earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. Equities research analysts forecast that Advance Auto Parts will post -0.46 earnings per share for the current year.

Advance Auto Parts Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Stockholders of record on Friday, April 10th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, April 10th. Advance Auto Parts’s payout ratio is 136.99%.

Institutional Investors Weigh In On Advance Auto Parts

Hedge funds have recently made changes to their positions in the company. Salomon & Ludwin LLC purchased a new position in shares of Advance Auto Parts in the 3rd quarter worth approximately $26,000. Caitong International Asset Management Co. Ltd purchased a new stake in Advance Auto Parts during the 3rd quarter valued at $31,000. AlphaCore Capital LLC raised its holdings in Advance Auto Parts by 6,288.9% during the 3rd quarter. AlphaCore Capital LLC now owns 575 shares of the company’s stock valued at $35,000 after buying an additional 566 shares during the period. Hantz Financial Services Inc. lifted its position in Advance Auto Parts by 184.5% in the fourth quarter. Hantz Financial Services Inc. now owns 919 shares of the company’s stock worth $36,000 after buying an additional 596 shares during the last quarter. Finally, Smartleaf Asset Management LLC lifted its position in Advance Auto Parts by 290.3% in the second quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock worth $43,000 after buying an additional 688 shares during the last quarter. 88.70% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. TD Cowen reissued a “hold” rating on shares of Advance Auto Parts in a research note on Tuesday, February 17th. Evercore set a $60.00 target price on shares of Advance Auto Parts in a report on Wednesday, February 11th. Roth Mkm reiterated a “neutral” rating and issued a $57.00 price target on shares of Advance Auto Parts in a research note on Thursday, February 19th. Truist Financial raised their price target on Advance Auto Parts from $48.00 to $57.00 and gave the company a “hold” rating in a report on Tuesday, February 17th. Finally, Morgan Stanley set a $60.00 price objective on Advance Auto Parts in a research report on Tuesday, February 17th. Two investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average target price of $52.93.

Advance Auto Parts Company Profile

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.