Advance Auto Parts, Inc. (NYSE:AAP) Sees Large Decline in Short Interest

Advance Auto Parts, Inc. (NYSE:AAP) was the recipient of a significant drop in short interest in July. As of July 31st, there was short interest totalling 7,230,000 shares, a drop of 10.6% from the July 15th total of 8,090,000 shares. Based on an average trading volume of 1,490,000 shares, the days-to-cover ratio is currently 4.9 days. Approximately 12.3% of the company’s stock are sold short.

Advance Auto Parts Price Performance

AAP stock traded down $0.20 during trading on Friday, hitting $62.19. The company had a trading volume of 995,805 shares, compared to its average volume of 1,623,280. The company has a fifty day moving average price of $61.63 and a two-hundred day moving average price of $68.96. Advance Auto Parts has a fifty-two week low of $47.73 and a fifty-two week high of $88.56. The company has a market cap of $3.71 billion, a P/E ratio of 90.13, a P/E/G ratio of 1.20 and a beta of 1.20. The company has a current ratio of 1.22, a quick ratio of 0.29 and a debt-to-equity ratio of 0.70.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings results on Wednesday, May 29th. The company reported $0.67 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.69 by ($0.02). The firm had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.43 billion. Advance Auto Parts had a net margin of 0.37% and a return on equity of 1.59%. The company’s revenue for the quarter was down .3% on a year-over-year basis. During the same period in the prior year, the business earned $0.72 earnings per share. Equities research analysts expect that Advance Auto Parts will post 3.7 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 26th. Shareholders of record on Friday, July 12th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.61%. The ex-dividend date was Friday, July 12th. Advance Auto Parts’s dividend payout ratio is currently 144.93%.

Hedge Funds Weigh In On Advance Auto Parts

A number of institutional investors have recently modified their holdings of the stock. Principal Securities Inc. bought a new stake in shares of Advance Auto Parts during the fourth quarter worth $27,000. Hexagon Capital Partners LLC raised its holdings in Advance Auto Parts by 267.7% during the 1st quarter. Hexagon Capital Partners LLC now owns 353 shares of the company’s stock worth $30,000 after purchasing an additional 257 shares during the last quarter. Allspring Global Investments Holdings LLC acquired a new position in Advance Auto Parts during the 1st quarter valued at about $34,000. Mather Group LLC. boosted its stake in shares of Advance Auto Parts by 1,241.7% in the 2nd quarter. Mather Group LLC. now owns 644 shares of the company’s stock valued at $41,000 after purchasing an additional 596 shares during the last quarter. Finally, Ashton Thomas Private Wealth LLC acquired a new stake in shares of Advance Auto Parts during the 2nd quarter worth approximately $41,000. 88.75% of the stock is owned by institutional investors.

Analysts Set New Price Targets

AAP has been the subject of a number of analyst reports. StockNews.com raised Advance Auto Parts from a “sell” rating to a “hold” rating in a research report on Thursday, May 30th. Royal Bank of Canada reduced their target price on Advance Auto Parts from $68.00 to $65.00 and set a “sector perform” rating for the company in a report on Thursday, May 30th. Evercore ISI lowered their price target on Advance Auto Parts from $70.00 to $68.00 and set an “in-line” rating on the stock in a report on Tuesday, July 16th. Mizuho reduced their price objective on shares of Advance Auto Parts from $78.00 to $64.00 and set a “neutral” rating for the company in a research note on Monday, June 10th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Advance Auto Parts from $68.00 to $55.00 and set a “neutral” rating for the company in a report on Friday. One equities research analyst has rated the stock with a sell rating and fifteen have issued a hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $63.36.

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.