Advance Auto Parts (NYSE:AAP) Trading Down 6.4% After Analyst Downgrade

Advance Auto Parts, Inc. (NYSE:AAP)’s stock price was down 6.4% during mid-day trading on Tuesday after TD Cowen lowered their price target on the stock from $62.00 to $46.00. TD Cowen currently has a hold rating on the stock. Advance Auto Parts traded as low as $40.42 and last traded at $40.4410. Approximately 331,861 shares traded hands during mid-day trading, a decline of 81% from the average daily volume of 1,763,875 shares. The stock had previously closed at $43.20.

AAP has been the topic of several other reports. Truist Financial set a $48.00 price target on Advance Auto Parts in a research note on Wednesday, December 17th. Citigroup dropped their target price on shares of Advance Auto Parts from $60.00 to $55.00 and set a “neutral” rating on the stock in a report on Friday, October 31st. Cowen reaffirmed a “hold” rating on shares of Advance Auto Parts in a research report on Tuesday. Weiss Ratings reissued a “sell (d)” rating on shares of Advance Auto Parts in a research report on Wednesday, October 8th. Finally, UBS Group set a $40.00 price objective on shares of Advance Auto Parts in a research note on Thursday, October 30th. One analyst has rated the stock with a Buy rating, twenty have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target of $49.83.

Insider Activity

In related news, EVP Kristen L. Soler sold 7,662 shares of the company’s stock in a transaction dated Thursday, November 13th. The shares were sold at an average price of $51.00, for a total value of $390,762.00. Following the transaction, the executive vice president owned 23,165 shares in the company, valued at $1,181,415. The trade was a 24.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.67% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in AAP. Fearless Solutions LLC dba Best Invest increased its position in shares of Advance Auto Parts by 15.2% during the fourth quarter. Fearless Solutions LLC dba Best Invest now owns 6,240 shares of the company’s stock valued at $245,000 after acquiring an additional 825 shares in the last quarter. Fluent Financial LLC purchased a new stake in Advance Auto Parts during the 4th quarter valued at $6,228,000. Exchange Traded Concepts LLC increased its holdings in shares of Advance Auto Parts by 16.6% in the 4th quarter. Exchange Traded Concepts LLC now owns 15,179 shares of the company’s stock worth $597,000 after purchasing an additional 2,160 shares in the last quarter. Moody National Bank Trust Division increased its holdings in shares of Advance Auto Parts by 4.0% in the 4th quarter. Moody National Bank Trust Division now owns 25,984 shares of the company’s stock worth $1,021,000 after purchasing an additional 1,009 shares in the last quarter. Finally, SG Americas Securities LLC raised its stake in shares of Advance Auto Parts by 8.4% in the fourth quarter. SG Americas Securities LLC now owns 39,711 shares of the company’s stock worth $1,561,000 after purchasing an additional 3,077 shares during the last quarter. Institutional investors own 88.70% of the company’s stock.

Advance Auto Parts Stock Performance

The company has a quick ratio of 0.88, a current ratio of 1.73 and a debt-to-equity ratio of 1.55. The stock has a market capitalization of $2.48 billion, a P/E ratio of -6.57 and a beta of 1.14. The business has a fifty day moving average price of $45.84 and a 200-day moving average price of $53.45.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings data on Thursday, October 30th. The company reported $0.92 EPS for the quarter, topping the consensus estimate of $0.74 by $0.18. The company had revenue of $2.04 billion during the quarter, compared to the consensus estimate of $2.02 billion. Advance Auto Parts had a positive return on equity of 0.64% and a negative net margin of 4.37%.Advance Auto Parts’s revenue for the quarter was down 5.2% on a year-over-year basis. During the same period last year, the company earned ($0.04) EPS. Advance Auto Parts has set its FY 2025 guidance at 1.750-1.850 EPS. On average, sell-side analysts expect that Advance Auto Parts, Inc. will post -0.46 EPS for the current year.

Advance Auto Parts Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 23rd. Investors of record on Friday, January 9th will be issued a $0.25 dividend. The ex-dividend date is Friday, January 9th. This represents a $1.00 annualized dividend and a yield of 2.4%. Advance Auto Parts’s dividend payout ratio (DPR) is currently -15.90%.

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.