Advance Auto Parts, Inc. (NYSE:AAP) Receives $58.66 Consensus Target Price from Analysts

Shares of Advance Auto Parts, Inc. (NYSE:AAP) have earned a consensus rating of “Hold” from the twenty research firms that are covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, seventeen have issued a hold recommendation and two have given a buy recommendation to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $58.6575.

Several equities analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft upgraded shares of Advance Auto Parts to a “buy” rating in a research report on Friday, May 22nd. BMO Capital Markets raised their target price on Advance Auto Parts from $60.00 to $65.00 and gave the stock a “market perform” rating in a research report on Friday, May 22nd. Citigroup raised their target price on Advance Auto Parts from $57.00 to $60.00 and gave the stock a “neutral” rating in a research report on Friday, May 22nd. Morgan Stanley lifted their price target 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. Finally, JPMorgan Chase & Co. dropped their price target on Advance Auto Parts from $64.00 to $59.00 and set a “neutral” rating on the stock in a research report on Friday, May 15th.

Institutional Trading of Advance Auto Parts

A number of hedge funds have recently made changes to their positions in the stock. CSM Advisors LLC increased its stake in Advance Auto Parts by 71.6% in the 3rd quarter. CSM Advisors LLC now owns 89,867 shares of the company’s stock valued at $5,517,000 after buying an additional 37,486 shares during the period. Fluent Financial LLC acquired a new stake in shares of Advance Auto Parts during the 4th quarter valued at $6,228,000. Royce & Associates LP grew its holdings in shares of Advance Auto Parts by 30.5% during the 4th quarter. Royce & Associates LP now owns 1,478,633 shares of the company’s stock valued at $58,110,000 after acquiring an additional 345,217 shares in the last quarter. Private Management Group Inc. purchased a new position in shares of Advance Auto Parts during the 4th quarter valued at $20,123,000. Finally, Cramer Rosenthal Mcglynn LLC acquired a new position in shares of Advance Auto Parts in the third quarter worth $3,950,000. 88.70% of the stock is owned by hedge funds and other institutional investors.

Advance Auto Parts Stock Performance

Shares of AAP opened at $61.46 on Tuesday. Advance Auto Parts has a one year low of $37.89 and a one year high of $70.00. The company has a 50-day moving average of $57.39 and a two-hundred day moving average of $52.35. The stock has a market cap of $3.71 billion, a price-to-earnings ratio of 85.37, a PEG ratio of 1.01 and a beta of 1.03. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.85.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings results on Thursday, May 21st. The company reported $0.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.39 by $0.38. The business had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.05 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The firm’s revenue was up 1.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.40 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. On average, equities research analysts expect that Advance Auto Parts will post 2.94 earnings per share for the current year.

Advance Auto Parts Dividend Announcement

The firm also recently announced 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 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Friday, July 10th. Advance Auto Parts’s payout ratio is 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.