Advance Auto Parts (NYSE:AAP) Releases Earnings Results

Advance Auto Parts (NYSE:AAP) posted its quarterly earnings results on Wednesday. The company reported ($0.82) earnings per share for the quarter, missing analysts’ consensus estimates of $1.44 by ($2.26), MarketWatch Earnings reports. The company had revenue of $2.72 billion during the quarter, compared to analyst estimates of $2.68 billion. Advance Auto Parts had a return on equity of 9.40% and a net margin of 1.65%. The company’s revenue was up 2.9% compared to the same quarter last year. During the same period last year, the company posted $2.84 earnings per share. Advance Auto Parts updated its FY 2023 guidance to $1.40-$1.80 EPS and its FY23 guidance to $1.40-1.80 EPS.

Advance Auto Parts Stock Down 5.8 %

Advance Auto Parts stock traded down $3.09 during midday trading on Friday, reaching $50.33. The stock had a trading volume of 5,545,748 shares, compared to its average volume of 2,096,203. Advance Auto Parts has a 1-year low of $47.73 and a 1-year high of $158.22. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.25 and a current ratio of 1.23. The firm’s fifty day simple moving average is $54.77 and its 200-day simple moving average is $71.99. The stock has a market capitalization of $2.99 billion, a P/E ratio of 16.00, a price-to-earnings-growth ratio of 3.05 and a beta of 1.14.

Advance Auto Parts Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, January 26th. Stockholders of record on Friday, January 12th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, January 11th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.99%. Advance Auto Parts’s dividend payout ratio (DPR) is 32.05%.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on AAP shares. Truist Financial lowered their price target on Advance Auto Parts from $65.00 to $55.00 and set a “hold” rating for the company in a research note on Thursday, October 5th. StockNews.com started coverage on Advance Auto Parts in a research report on Thursday, October 5th. They set a “hold” rating for the company. UBS Group lowered their target price on Advance Auto Parts from $75.00 to $62.00 and set a “neutral” rating on the stock in a report on Thursday. The Goldman Sachs Group reduced their price objective on Advance Auto Parts from $83.00 to $73.00 and set a “neutral” rating for the company in a research report on Thursday. Finally, Evercore ISI dropped their target price on shares of Advance Auto Parts from $80.00 to $75.00 and set an “in-line” rating on the stock in a research report on Friday, September 8th. Two analysts have rated the stock with a sell rating, twenty have assigned a hold rating and one has issued a buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $84.80.

Insider Transactions at Advance Auto Parts

In other Advance Auto Parts news, Director Eugene I. Lee, Jr. purchased 8,670 shares of the stock in a transaction on Wednesday, September 13th. The shares were purchased at an average price of $57.65 per share, with a total value of $499,825.50. Following the completion of the transaction, the director now directly owns 19,430 shares in the company, valued at $1,120,139.50. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.63% of the company’s stock.

Institutional Trading of Advance Auto Parts

Several hedge funds and other institutional investors have recently modified their holdings of AAP. Vanguard Group Inc. lifted its position in Advance Auto Parts by 3.9% during the first quarter. Vanguard Group Inc. now owns 6,970,480 shares of the company’s stock worth $1,442,611,000 after purchasing an additional 261,715 shares during the period. BlackRock Inc. lifted its stake in Advance Auto Parts by 9.3% during the second quarter. BlackRock Inc. now owns 4,435,265 shares of the company’s stock worth $311,799,000 after purchasing an additional 376,025 shares during the last quarter. State Street Corp increased its stake in shares of Advance Auto Parts by 28.2% in the 1st quarter. State Street Corp now owns 3,431,787 shares of the company’s stock valued at $417,340,000 after purchasing an additional 754,027 shares during the last quarter. Clearbridge Investments LLC lifted its position in shares of Advance Auto Parts by 3.6% during the 1st quarter. Clearbridge Investments LLC now owns 3,313,689 shares of the company’s stock worth $685,801,000 after buying an additional 114,789 shares during the last quarter. Finally, Morgan Stanley boosted its stake in Advance Auto Parts by 1.9% in the third quarter. Morgan Stanley now owns 1,113,690 shares of the company’s stock valued at $62,289,000 after buying an additional 20,573 shares in the last quarter. Institutional investors own 88.75% of the company’s stock.

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.