Advance Auto Parts (NYSE:AAP) Trading Down 4.4% Following Analyst Downgrade

Advance Auto Parts, Inc. (NYSE:AAP)’s stock price dropped 4.4% during mid-day trading on Tuesday after Evercore ISI lowered their price target on the stock from $71.00 to $67.00. Evercore ISI currently has an in-line rating on the stock. Advance Auto Parts traded as low as $38.93 and last traded at $39.19. Approximately 340,761 shares changed hands during trading, a decline of 83% from the average daily volume of 1,953,665 shares. The stock had previously closed at $40.98.

Several other brokerages have also commented on AAP. Wells Fargo & Company cut their price objective on Advance Auto Parts from $50.00 to $40.00 and set an “equal weight” rating for the company in a report on Friday, September 13th. Roth Capital raised shares of Advance Auto Parts to a “hold” rating in a report on Tuesday, October 15th. TD Cowen reduced their target price on shares of Advance Auto Parts from $65.00 to $55.00 and set a “hold” rating for the company in a report on Friday, August 23rd. Roth Mkm reiterated a “neutral” rating and set a $40.00 price target on shares of Advance Auto Parts in a research note on Wednesday, October 16th. Finally, Truist Financial reduced their price objective on Advance Auto Parts from $63.00 to $46.00 and set a “hold” rating for the company in a research note on Friday, August 23rd. One equities research analyst has rated the stock with a sell rating, fifteen have issued a hold rating and one has assigned a buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $55.86.

Institutional Investors Weigh In On Advance Auto Parts

A number of hedge funds have recently bought and sold shares of AAP. Hexagon Capital Partners LLC boosted its holdings in shares of Advance Auto Parts by 267.7% in 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 period. Allspring Global Investments Holdings LLC bought a new stake in shares of Advance Auto Parts during the first quarter valued at approximately $34,000. Mather Group LLC. boosted its holdings in shares of Advance Auto Parts by 1,241.7% in the second 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 period. Ashton Thomas Private Wealth LLC bought a new position in Advance Auto Parts in the second quarter worth approximately $41,000. Finally, Future Financial Wealth Managment LLC purchased a new position in Advance Auto Parts during the 1st quarter worth $43,000. Hedge funds and other institutional investors own 88.75% of the company’s stock.

Advance Auto Parts Trading Down 4.4 %

The firm has a market capitalization of $2.34 billion, a P/E ratio of 56.88, a price-to-earnings-growth ratio of 1.25 and a beta of 1.16. The stock has a 50-day simple moving average of $44.08 and a two-hundred day simple moving average of $59.09. The company has a current ratio of 1.23, a quick ratio of 0.30 and a debt-to-equity ratio of 0.69.

Advance Auto Parts (NYSE:AAP) last issued its earnings results on Thursday, August 22nd. The company reported $0.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.97 by ($0.22). Advance Auto Parts had a return on equity of 0.05% and a net margin of 0.01%. The business had revenue of $2.68 billion for the quarter, compared to the consensus estimate of $2.67 billion. During the same quarter in the previous year, the company earned $1.43 earnings per share. The firm’s revenue was down .1% on a year-over-year basis. On average, equities research analysts anticipate that Advance Auto Parts, Inc. will post 2.19 earnings per share for the current year.

Advance Auto Parts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 25th. Investors of record on Friday, October 11th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.55%. The ex-dividend date is Friday, October 11th. Advance Auto Parts’s dividend payout ratio (DPR) is currently 144.93%.

Advance Auto Parts Company Profile

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.