Advance Auto Parts (NYSE:AAP) Shares Gap Up Following Strong Earnings

Advance Auto Parts, Inc. (NYSE:AAP) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $51.24, but opened at $57.59. Advance Auto Parts shares last traded at $59.5370, with a volume of 682,118 shares traded.

The company reported $0.77 EPS for the quarter, beating the consensus estimate of $0.39 by $0.38. The firm had revenue of $2.61 billion during the quarter, compared to analyst estimates of $2.57 billion. Advance Auto Parts had a return on equity of 6.23% and a net margin of 0.51%.The business’s revenue for the quarter was up 1.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.40 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on AAP. Northcoast Research raised Advance Auto Parts from a “neutral” rating to a “buy” rating and set a $55.00 price objective on the stock in a report on Wednesday, January 21st. Weiss Ratings reiterated a “sell (d+)” rating on shares of Advance Auto Parts in a report on Friday, May 15th. TD Cowen reissued a “hold” rating on shares of Advance Auto Parts in a research report on Tuesday, February 17th. Morgan Stanley set a $60.00 price objective on shares of Advance Auto Parts in a report on Tuesday, February 17th. Finally, BMO Capital Markets raised their target price 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. One equities research analyst has rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and an average target price of $52.72.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD increased its holdings in Advance Auto Parts by 18.9% in 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 acquiring an additional 1,190,094 shares in the last quarter. Pzena Investment Management LLC increased its stake in shares of Advance Auto Parts by 8.2% during the first quarter. Pzena Investment Management LLC now owns 4,301,089 shares of the company’s stock worth $226,882,000 after purchasing an additional 327,596 shares in the last quarter. Federated Hermes Inc. raised its position in shares of Advance Auto Parts by 4.4% during the 4th quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company’s stock worth $110,499,000 after purchasing an additional 117,648 shares during the last quarter. State Street Corp lifted its stake in Advance Auto Parts by 3.9% in the 4th quarter. State Street Corp now owns 2,499,981 shares of the company’s stock valued at $98,249,000 after buying an additional 92,861 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in Advance Auto Parts by 15.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company’s stock worth $112,243,000 after buying an additional 282,591 shares during the last quarter. 88.70% of the stock is owned by institutional investors and hedge funds.

Advance Auto Parts Trading Up 16.5%

The company has a market capitalization of $3.60 billion, a PE ratio of 81.74, a price-to-earnings-growth ratio of 0.87 and a beta of 1.06. The company has a 50 day simple moving average of $53.69 and a 200 day simple moving average of $50.29. The company has a debt-to-equity ratio of 1.55, a quick ratio of 0.87 and a current ratio of 1.75.

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.