Advance Auto Parts (NYSE:AAP) Stock Price Down 4.9% – What’s Next?

Advance Auto Parts, Inc. (NYSE:AAP)’s share price fell 4.9% during mid-day trading on Friday . The stock traded as low as $55.65 and last traded at $55.7750. 824,622 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 1,827,023 shares. The stock had previously closed at $58.62.

Advance Auto Parts News Roundup

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

• Positive Sentiment: Advance Auto Parts reported Q1 EPS of $0.77 versus the $0.39 consensus and revenue of $2.61 billion versus $2.57 billion expected, signaling better-than-expected execution. Article: Advance Auto Parts earnings report
• Positive Sentiment: Comparable sales rose 3.5%, with mid-single-digit growth in Pro and low-single-digit growth in DIY, suggesting demand is improving across key customer channels. Article: Advance Auto Q1 Earnings Beat Estimates on Strong Comps Growth
• Positive Sentiment: Gross margin and operating margin expanded meaningfully, with management pointing to higher product margins and fewer store-optimization headwinds, which supports the case for a sustained recovery. Article: Advance Auto Parts surges as Q1 results show comps and margins rebounding
• Positive Sentiment: Multiple brokerages lifted price targets to $60-$65, including Citigroup, Morgan Stanley, UBS, RBC, and BMO, indicating analysts see more upside even while keeping neutral/equal-weight style ratings. Article: Analyst price target updates
• Neutral Sentiment: The company reaffirmed full-year 2026 guidance rather than raising it, which may have tempered some enthusiasm despite the strong quarter. Article: Q1 2026 results and guidance
• Neutral Sentiment: Advance Auto Parts also declared a quarterly dividend of $0.25 per share, a supportive but not major near-term catalyst for the stock. Article: Dividend announcement

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on AAP. TD Cowen reissued a “hold” rating on shares of Advance Auto Parts in a research report on Friday. BMO Capital Markets upped their target price on shares of Advance Auto Parts from $60.00 to $65.00 and gave the company a “market perform” rating in a research note on Friday. Deutsche Bank Aktiengesellschaft upgraded shares of Advance Auto Parts to a “buy” rating in a research note on Friday. The Goldman Sachs Group upped their target price on shares of Advance Auto Parts from $49.00 to $54.00 and gave the company a “sell” rating in a research note on Friday. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Advance Auto Parts in a research note on Friday, May 15th. Two investment analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of $56.19.

Advance Auto Parts Stock Down 1.1%

The firm has a market capitalization of $3.50 billion, a PE ratio of 79.38, a P/E/G ratio of 0.90 and a beta of 1.06. The firm’s 50 day moving average price is $53.84 and its two-hundred day moving average price is $50.37. The company has a quick ratio of 0.87, a current ratio of 1.75 and a debt-to-equity ratio of 1.55.

Advance Auto Parts (NYSE:AAP) last announced 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. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The business had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.57 billion. During the same period in the prior year, the firm earned $0.40 earnings per share. The business’s quarterly revenue was up 1.2% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. As a group, research analysts forecast that Advance Auto Parts, Inc. will post 2.77 EPS for the current fiscal year.

Advance Auto Parts Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Friday, July 10th. Advance Auto Parts’s dividend payout ratio is 136.99%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in AAP. American Century Companies Inc. boosted its stake in Advance Auto Parts by 559.0% during the 3rd quarter. American Century Companies Inc. now owns 1,519,591 shares of the company’s stock valued at $93,303,000 after acquiring an additional 1,288,986 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Advance Auto Parts by 18.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company’s stock valued at $293,751,000 after acquiring an additional 1,190,094 shares during the last quarter. Maple Rock Capital Partners Inc. boosted its stake in Advance Auto Parts by 508.2% during 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 during the last quarter. Wellington Management Group LLP bought a new position in Advance Auto Parts during the 3rd quarter valued at $33,610,000. Finally, Private Management Group Inc. bought a new position in Advance Auto Parts during the 4th quarter valued at $20,123,000. 88.70% of the stock is currently owned by institutional investors.

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.