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

Advance Auto Parts, Inc. (NYSE:AAP) saw unusually large options trading activity on Tuesday. Investors bought 15,532 put options on the stock. This represents an increase of 74% compared to the average daily volume of 8,944 put options.

Hedge Funds Weigh In On Advance Auto Parts

A number of institutional investors and hedge funds have recently bought and sold shares of AAP. Allworth Financial LP increased its position in Advance Auto Parts by 190.0% during the fourth quarter. Allworth Financial LP now owns 406 shares of the company’s stock worth $25,000 after acquiring an additional 266 shares during the period. Principal Securities Inc. bought a new stake in Advance Auto Parts in the 4th quarter valued at $27,000. Hexagon Capital Partners LLC increased its holdings in Advance Auto Parts by 267.7% in the 1st quarter. Hexagon Capital Partners LLC now owns 353 shares of the company’s stock valued at $30,000 after buying an additional 257 shares during the period. Allspring Global Investments Holdings LLC bought a new stake in Advance Auto Parts in the 1st quarter valued at $34,000. Finally, Quarry LP increased its holdings in Advance Auto Parts by 285.7% in the 4th quarter. Quarry LP now owns 702 shares of the company’s stock valued at $43,000 after buying an additional 520 shares during the period. Institutional investors own 88.75% of the company’s stock.

Advance Auto Parts Stock Performance

Shares of NYSE:AAP traded up $0.82 during trading on Tuesday, reaching $60.53. The stock had a trading volume of 704,955 shares, compared to its average volume of 1,716,905. Advance Auto Parts has a 52 week low of $47.73 and a 52 week high of $88.56. The firm has a market capitalization of $3.61 billion, a price-to-earnings ratio of 86.94, a P/E/G ratio of 1.22 and a beta of 1.20. The company has a quick ratio of 0.29, a current ratio of 1.22 and a debt-to-equity ratio of 0.70. The stock has a fifty day simple moving average of $69.32 and a two-hundred day simple moving average of $69.43.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings results on Wednesday, May 29th. The company reported $0.67 EPS for the quarter, missing analysts’ consensus estimates of $0.69 by ($0.02). Advance Auto Parts had a net margin of 0.37% and a return on equity of 1.59%. The firm had revenue of $3.41 billion during the quarter, compared to the consensus estimate of $3.43 billion. During the same period in the prior year, the business earned $0.72 EPS. The company’s revenue for the quarter was down .3% compared to the same quarter last year. As a group, analysts anticipate that Advance Auto Parts will post 3.72 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, July 26th. Investors of record on Friday, July 12th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.65%. The ex-dividend date is Friday, July 12th. Advance Auto Parts’s dividend payout ratio (DPR) is currently 144.93%.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Wedbush reiterated a “neutral” rating and issued a $70.00 target price on shares of Advance Auto Parts in a report on Friday, May 24th. UBS Group raised their target price on shares of Advance Auto Parts from $68.00 to $72.00 and gave the stock a “neutral” rating in a report on Tuesday, May 28th. Bank of America raised their target price on shares of Advance Auto Parts from $51.00 to $55.00 and gave the stock an “underperform” rating in a report on Thursday, May 30th. StockNews.com upgraded shares of Advance Auto Parts from a “sell” rating to a “hold” rating in a report on Thursday, May 30th. Finally, Truist Financial decreased their price target on shares of Advance Auto Parts from $70.00 to $63.00 and set a “hold” rating for the company in a report on Thursday, May 30th. Two investment analysts have rated the stock with a sell rating and fifteen have assigned a hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $63.80.

About Advance Auto Parts

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts.