Advance Auto Parts (NYSE:AAP) Trading Down 6.6% – Should You Sell?

Advance Auto Parts, Inc. (NYSE:AAP)’s share price fell 6.6% during trading on Monday . The company traded as low as $56.75 and last traded at $57.4610. 269,396 shares were traded during trading, a decline of 85% from the average session volume of 1,846,568 shares. The stock had previously closed at $61.53.

Wall Street Analyst Weigh In

AAP has been the topic of a number of research reports. JPMorgan Chase & Co. reduced their price objective on Advance Auto Parts from $64.00 to $59.00 and set a “neutral” rating on the stock in a research note on Friday, May 15th. UBS Group raised their target price on shares of Advance Auto Parts from $60.00 to $65.00 and gave the company a “neutral” rating in a report on Friday, May 22nd. TD Cowen restated a “hold” rating on shares of Advance Auto Parts in a research report on Friday, May 22nd. Mizuho upped their price target on shares of Advance Auto Parts from $54.00 to $58.00 and gave the company a “neutral” rating in a research note on Tuesday, May 26th. Finally, Royal Bank Of Canada increased their price objective on shares of Advance Auto Parts from $62.00 to $65.00 and gave the company a “sector perform” rating in a research report on Friday, May 22nd. Two analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $58.66.

Advance Auto Parts Price Performance

The firm has a market capitalization of $3.37 billion, a P/E ratio of 77.60, a price-to-earnings-growth ratio of 0.93 and a beta of 1.03. The company has a current ratio of 1.78, a quick ratio of 0.85 and a debt-to-equity ratio of 1.54. The firm has a 50 day moving average price of $57.30 and a 200-day moving average price of $52.58.

Advance Auto Parts (NYSE:AAP) last released its earnings results on Thursday, May 21st. The company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.38. The firm had revenue of $2.61 billion for the quarter, compared to the consensus estimate of $2.05 billion. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.The company’s revenue for the quarter was up 1.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.40 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. On average, analysts expect that Advance Auto Parts, Inc. will post 2.94 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, July 24th. Stockholders of record on Friday, July 10th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Friday, July 10th. Advance Auto Parts’s dividend payout ratio (DPR) is 138.89%.

Hedge Funds Weigh In On Advance Auto Parts

Hedge funds have recently added to or reduced their stakes in the company. Glenmede Trust Co. NA bought a new stake in Advance Auto Parts in the first quarter worth about $357,000. Bank of America Corp DE grew its stake in shares of Advance Auto Parts by 4.5% during the first quarter. Bank of America Corp DE now owns 1,056,281 shares of the company’s stock valued at $55,719,000 after buying an additional 45,696 shares during the last quarter. Arkadios Wealth Advisors raised its holdings in shares of Advance Auto Parts by 3.7% in the first quarter. Arkadios Wealth Advisors now owns 29,002 shares of the company’s stock worth $1,530,000 after buying an additional 1,035 shares during the period. Amundi raised its holdings in shares of Advance Auto Parts by 37.0% in the first quarter. Amundi now owns 10,887 shares of the company’s stock worth $574,000 after buying an additional 2,943 shares during the period. Finally, California State Teachers Retirement System lifted its stake in shares of Advance Auto Parts by 23.0% during the 1st quarter. California State Teachers Retirement System now owns 70,260 shares of the company’s stock worth $3,706,000 after acquiring an additional 13,145 shares during the last quarter. 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.