Advance Auto Parts (NYSE:AAP) Price Target Cut to $52.00 by Analysts at Royal Bank Of Canada

Advance Auto Parts (NYSE:AAP) had its target price reduced by equities research analysts at Royal Bank Of Canada from $67.00 to $52.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has a “sector perform” rating on the stock. Royal Bank Of Canada’s price target would indicate a potential upside of 22.73% from the stock’s previous close.

A number of other research analysts have also recently issued reports on AAP. Guggenheim reiterated a “neutral” rating on shares of Advance Auto Parts in a research report on Friday. Barclays set a $50.00 price target on shares of Advance Auto Parts in a research note on Friday. Deutsche Bank Aktiengesellschaft raised shares of Advance Auto Parts to a “buy” rating in a research note on Friday, May 22nd. The Goldman Sachs Group upped their price target on shares of Advance Auto Parts from $49.00 to $54.00 and gave the stock a “sell” rating in a report on Friday, May 22nd. Finally, Weiss Ratings raised Advance Auto Parts from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, May 29th. Two investment analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $56.38.

Advance Auto Parts Trading Down 24.6%

Shares of Advance Auto Parts stock opened at $42.37 on Friday. The firm’s 50-day moving average price is $56.94 and its two-hundred day moving average price is $55.43. The company has a market capitalization of $2.56 billion, a price-to-earnings ratio of 58.85, a PEG ratio of 0.93 and a beta of 1.03. 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 has a 12-month low of $37.89 and a 12-month high of $65.21.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings data on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.81 by $0.22. The business had revenue of $2 billion for the quarter, compared to analysts’ expectations of $2.04 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The firm’s quarterly revenue was down .5% compared to the same quarter last year. During the same period last year, the firm posted $0.69 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, analysts forecast that Advance Auto Parts will post 2.94 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Advance Auto Parts

A number of institutional investors and hedge funds have recently modified their holdings of AAP. BlackRock Inc. bought a new stake in shares of Advance Auto Parts in the 2nd quarter valued at $581,909,000. Pzena Investment Management LLC acquired a new position in shares of Advance Auto Parts during the second quarter valued at about $273,115,000. Price T Rowe Associates Inc. MD boosted its position in shares of Advance Auto Parts by 18.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company’s stock worth $293,751,000 after purchasing an additional 1,190,094 shares in the last quarter. Maple Rock Capital Partners Inc. increased its position in Advance Auto Parts by 86.5% in the 2nd quarter. Maple Rock Capital Partners Inc. now owns 2,421,040 shares of the company’s stock valued at $150,637,000 after buying an additional 1,122,900 shares in the last quarter. Finally, Bank of America Corp DE bought a new position in Advance Auto Parts in the second quarter worth approximately $59,626,000. 88.70% of the stock is currently owned by institutional investors.

Advance Auto Parts News Roundup

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: AAP reported adjusted second-quarter earnings of $1.03 per share, well above the $0.81 analyst consensus and up from $0.69 a year earlier. Gross margin improved to 46.2% from 43.5%, while operating income rose substantially. Advance Auto Parts Q2 Earnings Surpass Estimates
• Positive Sentiment: Management raised or maintained its full-year adjusted EPS outlook at $2.60-$3.30 and is continuing to reduce leverage. The company repaid approximately $30 million of debt principal during the quarter, lowering net leverage to 2.1 times from 2.4 times. Advance Auto Parts Q2 Takes a Hit on Weak DIY Demand
• Positive Sentiment: The company declared a quarterly dividend of $0.25 per share, providing an annualized yield of approximately 2.4% at the reported price level.
• Neutral Sentiment: Some analysts view the selloff as a potential near-term opportunity, while institutional trading was mixed, with several funds adding shares and others reducing or exiting positions. Advance Auto Parts Upgrade
• Negative Sentiment: Revenue of approximately $2.0 billion missed estimates near $2.04 billion, declined year over year, and comparable-store sales fell 0.5%. Investors were particularly concerned about weaker do-it-yourself demand and “constrained” customer spending. Cash-Strapped DIY Customers Tap the Brakes
• Negative Sentiment: Bank of America analyst Robert Ohmes reiterated a Sell/Underperform rating with a $48 price target, citing ongoing DIY weakness and execution risks. Bank of America Sell Rating

Advance Auto Parts Company Profile

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.