Advance Auto Parts (NYSE:AAP) Shares Up 8.5% – Still a Buy?

Advance Auto Parts, Inc. (NYSE:AAP) shares shot up 8.5% on Monday . The stock traded as high as $50.89 and last traded at $51.0230. 158,435 shares traded hands during mid-day trading, a decline of 92% from the average session volume of 1,965,031 shares. The stock had previously closed at $47.04.

Wall Street Analysts Forecast Growth

AAP has been the topic of several analyst reports. TD Cowen reiterated a “hold” rating on shares of Advance Auto Parts in a report on Tuesday, February 17th. BMO Capital Markets upped their price objective on shares of Advance Auto Parts from $55.00 to $60.00 and gave the stock a “market perform” rating in a report on Tuesday, February 17th. Royal Bank Of Canada raised their target price on shares of Advance Auto Parts from $57.00 to $63.00 and gave the company a “sector perform” rating in a research note on Tuesday, February 17th. UBS Group reissued a “neutral” rating on shares of Advance Auto Parts in a research report on Monday, February 9th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Advance Auto Parts in a report on Wednesday, January 21st. Two research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $52.93.

Advance Auto Parts Stock Performance

The firm’s 50 day moving average price is $50.91 and its 200-day moving average price is $51.34. The firm has a market cap of $3.03 billion, a price-to-earnings ratio of 69.07, a P/E/G ratio of 0.63 and a beta of 1.11. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.75 and a quick ratio of 0.87.

Advance Auto Parts (NYSE:AAP) last released its earnings results on Friday, February 13th. The company reported $0.86 EPS for the quarter, beating the consensus estimate of $0.41 by $0.45. The firm had revenue of $1.97 billion during the quarter, compared to analysts’ expectations of $1.95 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The business’s quarterly revenue was down 1.2% compared to the same quarter last year. During the same period in the prior year, the company earned ($10.16) EPS. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. On average, analysts anticipate that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current year.

Advance Auto Parts Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, April 10th. Advance Auto Parts’s dividend payout ratio (DPR) is presently 136.99%.

Hedge Funds Weigh In On Advance Auto Parts

Several large investors have recently added to or reduced their stakes in the company. Amalgamated Bank increased its position in shares of Advance Auto Parts by 1.1% during the third quarter. Amalgamated Bank now owns 17,270 shares of the company’s stock valued at $1,060,000 after purchasing an additional 185 shares during the period. Hsbc Holdings PLC lifted its position in Advance Auto Parts by 3.1% in the second quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock worth $293,000 after purchasing an additional 191 shares during the period. Arizona State Retirement System boosted its stake in Advance Auto Parts by 1.6% during the third quarter. Arizona State Retirement System now owns 17,733 shares of the company’s stock worth $1,089,000 after buying an additional 272 shares in the last quarter. Rockefeller Capital Management L.P. boosted its stake in Advance Auto Parts by 2.0% during the second quarter. Rockefeller Capital Management L.P. now owns 14,535 shares of the company’s stock worth $676,000 after buying an additional 283 shares in the last quarter. Finally, Envestnet Asset Management Inc. increased its holdings in Advance Auto Parts by 0.6% in the 3rd quarter. Envestnet Asset Management Inc. now owns 54,237 shares of the company’s stock valued at $3,330,000 after buying an additional 297 shares during the period. Institutional investors and hedge funds own 88.70% of the company’s stock.

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.