Advance Auto Parts (NYSE:AAP) Price Target Cut to $48.00 by Analysts at DA Davidson

Advance Auto Parts (NYSE:AAP) had its price objective lowered by analysts at DA Davidson from $58.00 to $48.00 in a report issued on Friday,Benzinga reports. The firm currently has a “neutral” rating on the stock. DA Davidson’s price target indicates a potential upside of 13.29% from the stock’s previous close.

Several other research firms also recently issued reports on AAP. Truist Financial set a $43.00 price target on Advance Auto Parts in a research note on Thursday. JPMorgan Chase & Co. dropped their price objective on shares of Advance Auto Parts from $64.00 to $59.00 and set a “neutral” rating for the company in a research note on Friday, May 15th. Weiss Ratings raised shares of Advance Auto Parts from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, May 29th. Mizuho increased their price target on Advance Auto Parts from $54.00 to $58.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 26th. Finally, BMO Capital Markets increased their target price on Advance Auto Parts from $60.00 to $65.00 and gave the stock a “market perform” rating in a report on Friday, May 22nd. Two equities research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $56.38.

Advance Auto Parts Stock Performance

AAP opened at $42.37 on Friday. 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 12-month low of $37.89 and a 12-month high of $65.21. The business has a 50 day moving average of $56.94 and a 200-day moving average of $55.43. The stock has a market cap of $2.56 billion, a price-to-earnings ratio of 58.85, a PEG ratio of 0.93 and a beta of 1.03.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings results on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.81 by $0.22. The business had revenue of $2 billion during the quarter, compared to the consensus estimate of $2.04 billion. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.The company’s quarterly revenue was down .5% on a year-over-year basis. During the same quarter last year, the firm posted $0.69 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, equities research analysts expect that Advance Auto Parts will post 2.94 earnings per share for the current year.

Hedge Funds Weigh In On Advance Auto Parts

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Dimensional Fund Advisors LP raised its stake in Advance Auto Parts by 15.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company’s stock worth $112,243,000 after buying an additional 282,591 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of Advance Auto Parts by 4.5% in the 1st quarter. Bank of America Corp DE now owns 1,056,281 shares of the company’s stock valued at $55,719,000 after purchasing an additional 45,696 shares during the period. Private Management Group Inc. bought a new stake in shares of Advance Auto Parts during the 4th quarter valued at about $20,123,000. Royce & Associates LP increased its holdings in Advance Auto Parts by 30.5% in the fourth quarter. Royce & Associates LP now owns 1,478,633 shares of the company’s stock worth $58,110,000 after purchasing an additional 345,217 shares in the last quarter. Finally, Fifth Third Bancorp boosted its holdings in shares of Advance Auto Parts by 3,521.7% during the 1st quarter. Fifth Third Bancorp now owns 51,827 shares of the company’s stock worth $2,734,000 after buying an additional 50,396 shares in the last quarter. 88.70% of the stock is owned by institutional investors and hedge funds.

Key Advance Auto Parts News

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: AAP reported adjusted second-quarter earnings of $1.03 per share, well above the $0.81 analyst consensus and up from $0.69 a year earlier. Gross margin improved to 46.2% from 43.5%, while operating income rose substantially. Advance Auto Parts Q2 Earnings Surpass Estimates
• Positive Sentiment: Management raised or maintained its full-year adjusted EPS outlook at $2.60-$3.30 and is continuing to reduce leverage. The company repaid approximately $30 million of debt principal during the quarter, lowering net leverage to 2.1 times from 2.4 times. Advance Auto Parts Q2 Takes a Hit on Weak DIY Demand
• Positive Sentiment: The company declared a quarterly dividend of $0.25 per share, providing an annualized yield of approximately 2.4% at the reported price level.
• Neutral Sentiment: Some analysts view the selloff as a potential near-term opportunity, while institutional trading was mixed, with several funds adding shares and others reducing or exiting positions. Advance Auto Parts Upgrade
• Negative Sentiment: Revenue of approximately $2.0 billion missed estimates near $2.04 billion, declined year over year, and comparable-store sales fell 0.5%. Investors were particularly concerned about weaker do-it-yourself demand and “constrained” customer spending. Cash-Strapped DIY Customers Tap the Brakes
• Negative Sentiment: Bank of America analyst Robert Ohmes reiterated a Sell/Underperform rating with a $48 price target, citing ongoing DIY weakness and execution risks. Bank of America Sell Rating

Advance Auto Parts Company Profile

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.