Advance Auto Parts (NYSE:AAP) Trading Down 7% – Here’s Why

Advance Auto Parts, Inc. (NYSE:AAP)’s share price was down 7% on Friday . The stock traded as low as $41.23 and last traded at $41.31. Approximately 495,936 shares traded hands during mid-day trading, a decline of 76% from the average daily volume of 2,065,706 shares. The stock had previously closed at $44.44.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. TD Cowen cut their target price on Advance Auto Parts from $65.00 to $55.00 and set a “hold” rating for the company in a research report on Friday, August 23rd. The Goldman Sachs Group lowered their target price on shares of Advance Auto Parts from $60.00 to $43.00 and set a “neutral” rating on the stock in a report on Friday, November 15th. Roth Capital raised shares of Advance Auto Parts to a “hold” rating in a research note on Tuesday, October 15th. UBS Group boosted their price target on shares of Advance Auto Parts from $42.00 to $44.00 and gave the stock a “neutral” rating in a research note on Friday, November 15th. Finally, DA Davidson restated a “neutral” rating and set a $45.00 price objective on shares of Advance Auto Parts in a research report on Friday, November 15th. One analyst has rated the stock with a sell rating, fifteen have given a hold rating and one has issued a buy rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $48.64.

Advance Auto Parts Trading Down 7.2 %

The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.62 and a current ratio of 1.34. The firm has a market cap of $2.46 billion, a PE ratio of 56.59 and a beta of 1.17. The company has a 50 day simple moving average of $39.20 and a two-hundred day simple moving average of $52.30.

Advance Auto Parts (NYSE:AAP) last issued its quarterly earnings data on Thursday, November 14th. The company reported ($0.04) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.53). Advance Auto Parts had a net margin of 0.41% and a return on equity of 1.82%. The company had revenue of $2.15 billion during the quarter, compared to analyst estimates of $2.62 billion. During the same period last year, the firm earned ($0.82) EPS. The business’s quarterly revenue was down 3.2% compared to the same quarter last year. Analysts expect that Advance Auto Parts, Inc. will post -0.51 EPS for the current fiscal year.

Advance Auto Parts Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 24th. Shareholders of record on Friday, January 10th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, January 10th. This represents a $1.00 dividend on an annualized basis and a yield of 2.42%. Advance Auto Parts’s dividend payout ratio is currently 136.99%.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in AAP. Mather Group LLC. increased its holdings in Advance Auto Parts by 1,241.7% in the 2nd quarter. Mather Group LLC. now owns 644 shares of the company’s stock worth $41,000 after acquiring an additional 596 shares in the last quarter. Ashton Thomas Private Wealth LLC acquired a new stake in Advance Auto Parts in the 2nd quarter valued at about $41,000. Blue Trust Inc. grew its position in Advance Auto Parts by 56.7% in the third quarter. Blue Trust Inc. now owns 1,205 shares of the company’s stock worth $47,000 after acquiring an additional 436 shares during the period. AM Squared Ltd acquired a new stake in shares of Advance Auto Parts in the second quarter valued at $63,000. Finally, KBC Group NV raised its stake in shares of Advance Auto Parts by 29.1% in the third quarter. KBC Group NV now owns 1,749 shares of the company’s stock valued at $68,000 after acquiring an additional 394 shares in the last quarter. 88.75% of the stock is owned by institutional investors and hedge funds.

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.