Advance Auto Parts (NYSE:AAP) Trading Down 6.5% – Time to Sell?

Advance Auto Parts, Inc. (NYSE:AAP)’s share price traded down 6.5% during mid-day trading on Wednesday . The stock traded as low as $50.34 and last traded at $50.2670. 1,940,457 shares traded hands during trading, a decline of 9% from the average session volume of 2,122,963 shares. The stock had previously closed at $53.78.

Wall Street Analyst Weigh In

A number of analysts have weighed in on AAP shares. Royal Bank Of Canada raised their price target on Advance Auto Parts from $57.00 to $63.00 and gave the company a “sector perform” rating in a research note on Tuesday, February 17th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Advance Auto Parts in a research report on Wednesday, January 21st. Cfra raised Advance Auto Parts to a “hold” rating in a research report on Thursday, October 30th. TD Cowen restated a “hold” rating on shares of Advance Auto Parts in a research note on Tuesday, February 17th. Finally, Truist Financial upped 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. Three investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $53.03.

Advance Auto Parts Price Performance

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 firm has a market cap of $3.03 billion, a price-to-earnings ratio of 69.01, a PEG ratio of 0.75 and a beta of 1.14. The stock has a 50-day moving average price of $47.09 and a 200 day moving average price of $52.30.

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

Advance Auto Parts Announces Dividend

The firm 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 dividend on an annualized basis 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 presently 136.99%.

Institutional Trading of Advance Auto Parts

Large investors have recently bought and sold shares of the business. Salomon & Ludwin LLC acquired a new position in Advance Auto Parts in the third quarter valued at $26,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Advance Auto Parts during the third quarter worth about $31,000. AlphaCore Capital LLC grew its holdings in shares of Advance Auto Parts by 6,288.9% during the third quarter. AlphaCore Capital LLC now owns 575 shares of the company’s stock worth $35,000 after buying an additional 566 shares during the last quarter. Hantz Financial Services Inc. increased its position in 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. Finally, Smartleaf Asset Management LLC raised its stake in Advance Auto Parts by 290.3% during the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock valued at $43,000 after acquiring an additional 688 shares during the last quarter. Institutional investors and hedge funds 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.