Advance Auto Parts (NYSE:AAP) Stock Price Down 6.6% – Time to Sell?

Advance Auto Parts, Inc. (NYSE:AAP)’s stock price traded down 6.6% during mid-day trading on Monday . The stock traded as low as $56.75 and last traded at $57.4610. Approximately 269,396 shares were traded during mid-day trading, a decline of 85% from the average session volume of 1,846,568 shares. The stock had previously closed at $61.53.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on AAP. UBS Group lifted their price target on Advance Auto Parts from $60.00 to $65.00 and gave the company a “neutral” rating in a research report on Friday, May 22nd. JPMorgan Chase & Co. decreased their price objective on Advance Auto Parts from $64.00 to $59.00 and set a “neutral” rating for the company in a report on Friday, May 15th. Truist Financial raised their price objective on Advance Auto Parts from $55.00 to $62.00 and gave the company a “hold” rating in a research report on Thursday, May 21st. Citigroup boosted their target price on shares of Advance Auto Parts from $57.00 to $60.00 and gave the company a “neutral” rating in a report on Friday, May 22nd. Finally, Royal Bank Of Canada upped their target price on shares of Advance Auto Parts from $62.00 to $65.00 and gave the stock a “sector perform” rating in a research report on Friday, May 22nd. Two investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Advance Auto Parts currently has an average rating of “Hold” and a consensus target price of $58.66.

Advance Auto Parts Stock Down 5.6%

The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.85. The stock has a 50 day simple moving average of $57.39 and a 200-day simple moving average of $52.40. The firm has a market cap of $3.50 billion, a PE ratio of 80.72, a PEG ratio of 1.01 and a beta of 1.03.

Advance Auto Parts (NYSE:AAP) last released its earnings results on Thursday, May 21st. The company reported $0.77 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.38. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.The firm had revenue of $2.61 billion for the quarter, compared to analysts’ expectations of $2.05 billion. During the same period in the prior year, the firm posted $0.40 earnings per share. The company’s quarterly revenue was up 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. Sell-side analysts predict that Advance Auto Parts, Inc. will post 2.94 EPS for the current fiscal year.

Advance Auto Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, July 10th. Advance Auto Parts’s dividend payout ratio is 138.89%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Price T Rowe Associates Inc. MD grew its holdings in shares of Advance Auto Parts by 18.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company’s stock valued at $293,751,000 after buying an additional 1,190,094 shares during the last quarter. Pzena Investment Management LLC increased its holdings in shares of Advance Auto Parts by 8.2% in the 1st quarter. Pzena Investment Management LLC now owns 4,301,089 shares of the company’s stock worth $226,882,000 after purchasing an additional 327,596 shares in the last quarter. Federated Hermes Inc. raised its stake in shares of Advance Auto Parts by 4.4% in the fourth quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company’s stock worth $110,499,000 after purchasing an additional 117,648 shares during the last quarter. State Street Corp raised its stake in shares of Advance Auto Parts by 3.9% in the fourth quarter. State Street Corp now owns 2,499,981 shares of the company’s stock worth $98,249,000 after purchasing an additional 92,861 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of 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 valued at $112,243,000 after purchasing an additional 282,591 shares in the last quarter. 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.