Royal Bank Of Canada Cuts Advance Auto Parts (NYSE:AAP) Price Target to $52.00

Advance Auto Parts (NYSE:AAP) had its price objective decreased by Royal Bank Of Canada from $67.00 to $52.00 in a research note published on Friday, MarketBeat.com reports. Royal Bank Of Canada currently has a sector perform rating on the stock.

Other equities research analysts have also recently issued reports about the company. BMO Capital Markets upped their price target on Advance Auto Parts from $60.00 to $65.00 and gave the stock a “market perform” rating in a research note on Friday, May 22nd. UBS Group reduced their target price on shares of Advance Auto Parts from $65.00 to $47.00 and set a “neutral” rating on the stock in a research report on Friday. Truist Financial set a $43.00 target price on shares of Advance Auto Parts and gave the stock a “hold” rating in a research report on Thursday. JPMorgan Chase & Co. decreased their price target 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. Finally, Barclays lowered their price target on shares of Advance Auto Parts from $59.00 to $50.00 and set an “equal weight” rating for the company in a research report on Friday. Two analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $50.80.

Advance Auto Parts Stock Performance

Advance Auto Parts stock opened at $42.85 on Friday. Advance Auto Parts has a fifty-two week low of $37.89 and a fifty-two week high of $65.21. The stock’s 50 day simple moving average is $56.58 and its two-hundred day simple moving average is $55.39. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.85 and a current ratio of 1.75. The stock has a market cap of $2.59 billion, a price-to-earnings ratio of 31.28, a PEG ratio of 0.69 and a beta of 1.03.

Advance Auto Parts (NYSE:AAP) last announced its earnings results on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.22. The firm 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 business’s revenue was down .5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.69 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. As a group, analysts expect that Advance Auto Parts will post 2.97 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

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

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors and hedge funds have recently modified their holdings of AAP. BlackRock Inc. purchased a new position in shares of Advance Auto Parts in the 2nd quarter worth about $581,909,000. Pzena Investment Management LLC bought a new position in Advance Auto Parts in the 2nd quarter worth about $273,115,000. Price T Rowe Associates Inc. MD grew its position 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 purchasing an additional 1,190,094 shares during the last quarter. Maple Rock Capital Partners Inc. grew its position in Advance Auto Parts by 86.5% during the 2nd quarter. Maple Rock Capital Partners Inc. now owns 2,421,040 shares of the company’s stock valued at $150,637,000 after purchasing an additional 1,122,900 shares during the last quarter. Finally, Bank of America Corp DE purchased a new stake in Advance Auto Parts during the 2nd quarter valued at about $59,626,000. 88.70% of the stock is currently owned by institutional investors.

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

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.