Advance Auto Parts (NYSE:AAP) Trading Down 7.2% – Should You Sell?

Advance Auto Parts, Inc. (NYSE:AAP) was down 7.2% during trading on Monday . The company traded as low as $52.31 and last traded at $52.1120. Approximately 487,823 shares traded hands during trading, a decline of 72% from the average daily volume of 1,712,411 shares. The stock had previously closed at $56.15.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on AAP shares. Citigroup raised Advance Auto Parts from a “hold” rating to a “buy” rating in a report on Wednesday, January 21st. UBS Group reiterated a “neutral” rating on shares of Advance Auto Parts in a research report on Monday, February 9th. Truist Financial lifted their target price on shares of Advance Auto Parts from $48.00 to $57.00 and gave the stock a “hold” rating in a research note on Tuesday, February 17th. Northcoast Research upgraded shares of Advance Auto Parts from a “neutral” rating to a “buy” rating and set a $55.00 price target on the stock in a research note on Wednesday, January 21st. Finally, Morgan Stanley set a $60.00 price objective on shares of Advance Auto Parts in a report on Tuesday, February 17th. Two analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, Advance Auto Parts presently has an average rating of “Reduce” and a consensus target price of $52.93.

Advance Auto Parts Stock Performance

The stock has a market capitalization of $3.13 billion, a P/E ratio of 71.08, a PEG ratio of 0.98 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 has a 50-day moving average price of $53.81 and a two-hundred day moving average price of $50.54.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings data on Friday, February 13th. The company reported $0.86 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.45. The company had revenue of $1.97 billion during the quarter, compared to analyst estimates 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 revenue was down 1.2% compared to the same quarter last year. During the same period last year, the business earned ($10.16) earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. Equities analysts expect that Advance Auto Parts, Inc. will post 2.77 earnings per share for the current year.

Advance Auto Parts Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, April 24th. Shareholders of record on Friday, April 10th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Friday, April 10th. Advance Auto Parts’s dividend payout ratio (DPR) is presently 136.99%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. American Century Companies Inc. boosted its stake in 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 buying an additional 1,288,986 shares during the period. Price T Rowe Associates Inc. MD increased its stake in Advance Auto Parts by 18.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company’s stock worth $293,751,000 after acquiring an additional 1,190,094 shares during the last quarter. Maple Rock Capital Partners Inc. raised its holdings in shares of Advance Auto Parts by 508.2% in the 3rd quarter. Maple Rock Capital Partners Inc. now owns 951,790 shares of the company’s stock valued at $58,440,000 after acquiring an additional 795,290 shares in the last quarter. Wellington Management Group LLP bought a new stake in shares of Advance Auto Parts during the 3rd quarter valued at about $33,610,000. Finally, Private Management Group Inc. bought a new stake in shares of Advance Auto Parts during the 4th quarter valued at about $20,123,000. Institutional investors own 88.70% of the company’s stock.

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.