Advance Auto Parts (NYSE:AAP) Shares Gap Down – Here’s What Happened

Advance Auto Parts, Inc. (NYSE:AAP)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $56.18, but opened at $46.85. Advance Auto Parts shares last traded at $44.6780, with a volume of 2,118,922 shares changing hands.

Trending Headlines about Advance Auto Parts

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

• Positive Sentiment: Adjusted earnings beat expectations. Advance Auto Parts reported second-quarter adjusted EPS of $1.03, above the $0.81 consensus estimate and up from $0.69 a year earlier. The company also raised its FY2026 adjusted EPS guidance to $2.60–$3.30, while maintaining its sales outlook. Advance Auto Parts Analysts Cut Their Forecasts After Q2 Results
• Positive Sentiment: Margins and balance-sheet metrics improved. A $26 million tariff refund helped support quarterly margins, while gross margin expanded to 46.2% from 43.5% a year earlier. Advance also reduced net leverage to 2.1x from 2.4x and repaid approximately $30 million of debt. Advance Auto Parts Rebounds After Tariff Refund Boosts Q2 Margins
• Neutral Sentiment: Analyst targets remain mixed. JPMorgan lowered its target to $55, Morgan Stanley and RBC each moved to $52, and Citigroup cut its target to $45; all maintained neutral or equivalent ratings. These targets imply upside from recent levels, but Goldman Sachs reduced its target to $40 and assigned a Sell rating. Benzinga analyst updates
• Neutral Sentiment: The dividend provides shareholder support. Advance Auto Parts declared a quarterly dividend of $0.25 per share, with payment scheduled for October 23 to shareholders of record on October 9. The dividend yield is approximately 2.4%.
• Negative Sentiment: Sales momentum remains the main concern. Second-quarter revenue of approximately $2.0 billion missed estimates near $2.04 billion, while comparable-store sales declined 0.5%. Weak demand from cost-conscious, lower-income do-it-yourself customers and a volatile spending environment raised concerns about the pace of sales acceleration and required reinvestment. Advance Auto Parts Posts Disappointing Q2 Comparable Sales
• Negative Sentiment: Broad target reductions underscore execution risk. Goldman Sachs’s Sell rating and Bank of America’s reiterated Sell/Underperform view highlight concerns over weak DIY demand and the company’s ability to execute its turnaround, even after the earnings beat. Bank of America Reiterates Sell Rating

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on AAP shares. BMO Capital Markets reissued a “market perform” rating on shares of Advance Auto Parts in a research note on Friday. Weiss Ratings raised Advance Auto Parts from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 29th. Roth Capital set a $48.00 target price on Advance Auto Parts in a report on Friday. Evercore set a $65.00 price target on Advance Auto Parts in a research report on Tuesday, August 4th. Finally, The Goldman Sachs Group set a $49.00 price target on Advance Auto Parts in a research note on Friday. Two analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $50.80.

Advance Auto Parts Trading Up 1.1%

The stock has a market cap of $2.59 billion, a price-to-earnings ratio of 31.28, a P/E/G ratio of 0.71 and a beta of 1.03. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.75 and a quick ratio of 0.85. The company’s fifty day moving average price is $56.58 and its 200-day moving average price is $55.35.

Advance Auto Parts (NYSE:AAP) last issued its earnings results on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.81 by $0.22. The company had revenue of $2 billion during the quarter, compared to analyst estimates of $2.04 billion. Advance Auto Parts had a return on equity of 9.84% and a net margin of 0.97%.The firm’s quarterly revenue was down .5% on a year-over-year basis. During the same quarter last year, the business posted $0.69 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, research analysts expect that Advance Auto Parts, Inc. will post 2.9 EPS for the current fiscal year.

Advance Auto Parts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $1.00 dividend on an annualized basis and a yield of 2.3%. Advance Auto Parts’s dividend payout ratio (DPR) is currently 72.99%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Royal Bank of Canada lifted its stake in shares of Advance Auto Parts by 107.2% in the 1st quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock valued at $3,119,000 after purchasing an additional 41,157 shares during the last quarter. Goldman Sachs Group Inc. increased its position in shares of Advance Auto Parts by 327.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company’s stock worth $14,230,000 after purchasing an additional 278,066 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Advance Auto Parts by 14.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company’s stock worth $7,096,000 after purchasing an additional 23,018 shares during the last quarter. Hsbc Holdings PLC raised its holdings in Advance Auto Parts by 3.1% in the 2nd quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock valued at $293,000 after buying an additional 191 shares during the period. Finally, Baird Financial Group Inc. raised its holdings in Advance Auto Parts by 2.7% in the 2nd quarter. Baird Financial Group Inc. now owns 56,782 shares of the company’s stock valued at $2,640,000 after buying an additional 1,515 shares during the period. 88.70% of the stock is owned by hedge funds and other institutional investors.

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.