Advance Auto Parts Target of Unusually High Options Trading (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) was the recipient of some unusual options trading on Monday. Stock investors acquired 25,996 call options on the company. This is an increase of approximately 255% compared to the typical daily volume of 7,330 call options.

Institutional Investors Weigh In On Advance Auto Parts

A number of institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada increased its stake in shares of Advance Auto Parts by 107.2% in the first quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock valued at $3,119,000 after buying an additional 41,157 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Advance Auto Parts by 327.7% in the first quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company’s stock worth $14,230,000 after acquiring an additional 278,066 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Advance Auto Parts by 14.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company’s stock valued at $7,096,000 after acquiring an additional 23,018 shares during the last quarter. Hsbc Holdings PLC boosted its holdings in Advance Auto Parts by 3.1% in the second quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock valued at $293,000 after acquiring an additional 191 shares during the last quarter. Finally, Baird Financial Group Inc. boosted its holdings in Advance Auto Parts by 2.7% in the second quarter. Baird Financial Group Inc. now owns 56,782 shares of the company’s stock valued at $2,640,000 after acquiring an additional 1,515 shares during the last quarter. Institutional investors own 88.70% of the company’s stock.

Advance Auto Parts Trading Down 4.4%

NYSE AAP traded down $2.54 on Monday, hitting $55.41. The company’s stock had a trading volume of 1,726,834 shares, compared to its average volume of 1,864,789. The company’s 50-day moving average is $57.26 and its 200 day moving average is $52.90. The firm has a market cap of $3.34 billion, a PE ratio of 76.96, a PEG ratio of 0.95 and a beta of 1.03. Advance Auto Parts has a 1-year low of $37.89 and a 1-year high of $70.00. The company has a quick ratio of 0.85, a current ratio of 1.78 and a debt-to-equity ratio of 1.54.

Advance Auto Parts (NYSE:AAP) last issued its quarterly 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 net margin of 0.51% and a return on equity of 8.95%. The company had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.05 billion. During the same quarter in the previous year, the business earned $0.40 earnings per share. Advance Auto Parts’s 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, analysts predict that Advance Auto Parts will post 2.94 earnings per share for the current fiscal year.

Advance Auto Parts Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $1.00 annualized dividend and a yield of 1.8%. Advance Auto Parts’s payout ratio is presently 138.89%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on AAP shares. The Goldman Sachs Group boosted their price target on Advance Auto Parts from $49.00 to $54.00 and gave the stock a “sell” rating in a report on Friday, May 22nd. JPMorgan Chase & Co. reduced their price objective on Advance Auto Parts from $64.00 to $59.00 and set a “neutral” rating on the stock in a research note on Friday, May 15th. Deutsche Bank Aktiengesellschaft upgraded Advance Auto Parts to a “buy” rating in a research report on Friday, May 22nd. Wells Fargo & Company boosted their target price on Advance Auto Parts from $50.00 to $60.00 and gave the stock an “equal weight” rating in a research note on Friday, May 22nd. Finally, Morgan Stanley increased their target price on shares of Advance Auto Parts from $60.00 to $65.00 and gave the stock an “equal weight” rating in a report on Friday, May 22nd. Two investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $58.66.

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.