Investors Buy High Volume of Advance Auto Parts Call Options (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) was the target of unusually large options trading activity on Thursday. Traders purchased 13,787 call options on the stock. This represents an increase of approximately 85% compared to the average volume of 7,465 call options.

Institutional Trading of Advance Auto Parts

Hedge funds and other institutional investors have recently made changes to their positions in the company. Allworth Financial LP bought a new position in Advance Auto Parts in the 2nd quarter valued at approximately $25,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Advance Auto Parts during the third quarter valued at $31,000. State of Wyoming acquired a new position in shares of Advance Auto Parts during the second quarter worth $34,000. AlphaCore Capital LLC lifted its holdings in shares of Advance Auto Parts by 53.6% during the fourth quarter. AlphaCore Capital LLC now owns 883 shares of the company’s stock worth $35,000 after purchasing an additional 308 shares during the period. Finally, Hantz Financial Services Inc. grew its stake in shares of Advance Auto Parts by 184.5% in the fourth quarter. Hantz Financial Services Inc. now owns 919 shares of the company’s stock worth $36,000 after purchasing an additional 596 shares during the last quarter. 88.70% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

AAP has been the subject of several research analyst reports. Weiss Ratings upgraded shares of Advance Auto Parts from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 29th. Morgan Stanley raised their target price on Advance Auto Parts from $60.00 to $65.00 and gave the company an “equal weight” rating in a report on Friday, May 22nd. TD Cowen reissued a “hold” rating on shares of Advance Auto Parts in a report on Friday, May 22nd. Evercore set a $65.00 price target on Advance Auto Parts in a report on Tuesday, August 4th. Finally, UBS Group raised their price objective on Advance Auto Parts from $60.00 to $65.00 and gave the company a “neutral” rating in a research note on Friday, May 22nd. Two research 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. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $58.91.

Advance Auto Parts Price Performance

Shares of NYSE AAP traded down $0.81 during midday trading on Friday, reaching $56.55. 1,315,145 shares of the company were exchanged, compared to its average volume of 1,385,588. The stock’s 50-day moving average price is $57.45 and its 200-day moving average price is $55.26. The stock has a market cap of $3.41 billion, a P/E ratio of 78.54, a PEG ratio of 0.95 and a beta of 1.03. The company has a quick ratio of 0.85, a current ratio of 1.78 and a debt-to-equity ratio of 1.54. Advance Auto Parts has a one year low of $37.89 and a one year high of $65.21.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings results on Thursday, May 21st. 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 analysts’ expectations of $2.05 billion. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.Advance Auto Parts’s revenue was up 1.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.40 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. On average, sell-side analysts anticipate that Advance Auto Parts will post 2.94 earnings per share for the current fiscal year.

Advance Auto Parts Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were given a $0.25 dividend. The ex-dividend date was Friday, July 10th. This represents a $1.00 annualized dividend and a yield of 1.8%. Advance Auto Parts’s dividend payout ratio (DPR) is currently 138.89%.

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.