Advance Auto Parts (NYSE:AAP) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Advance Auto Parts, Inc. (NYSE:AAP) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $51.24, but opened at $57.59. Advance Auto Parts shares last traded at $59.5370, with a volume of 682,118 shares.

The company reported $0.77 EPS for the quarter, beating analysts’ consensus estimates of $0.39 by $0.38. The company had revenue of $2.61 billion during the quarter, compared to analyst estimates of $2.57 billion. Advance Auto Parts had a return on equity of 6.23% and a net margin of 0.51%.The firm’s revenue was up 1.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.40 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS.

Analysts Set New Price Targets

AAP has been the topic of a number of recent research reports. TD Cowen reaffirmed a “hold” rating on shares of Advance Auto Parts in a research note on Tuesday, February 17th. Truist Financial decreased their target price on shares of Advance Auto Parts from $57.00 to $55.00 and set a “hold” rating on the stock in a research report on Wednesday, May 13th. Wells Fargo & Company lifted their price target on Advance Auto Parts from $40.00 to $50.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 11th. UBS Group reiterated a “neutral” rating on shares of Advance Auto Parts in a report on Monday, February 9th. Finally, Morgan Stanley set a $60.00 price objective on shares of Advance Auto Parts in a research report on Tuesday, February 17th. One research analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $52.72.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd bought a new position in shares of Advance Auto Parts during the 3rd quarter worth $31,000. AlphaCore Capital LLC raised its stake in Advance Auto Parts by 6,288.9% in the third quarter. AlphaCore Capital LLC now owns 575 shares of the company’s stock worth $35,000 after buying an additional 566 shares in the last quarter. Hantz Financial Services Inc. increased its holdings in shares of Advance Auto Parts by 184.5% in 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 lifted its stake in shares of Advance Auto Parts by 290.3% during the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock worth $43,000 after purchasing an additional 688 shares during the last quarter. Finally, Atlantic Union Bankshares Corp purchased a new position in Advance Auto Parts in the third quarter valued at about $52,000. 88.70% of the stock is currently owned by hedge funds and other institutional investors.

Advance Auto Parts Trading Up 16.5%

The firm has a market capitalization of $3.60 billion, a PE ratio of 81.74, a price-to-earnings-growth ratio of 0.87 and a beta of 1.06. The company has a quick ratio of 0.87, a current ratio of 1.75 and a debt-to-equity ratio of 1.55. The company’s 50-day simple moving average is $53.69 and its 200 day simple moving average is $50.29.

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.