Advance Auto Parts (NYSE:AAP) Shares Gap Down Following Weak Earnings

Advance Auto Parts, Inc. (NYSE:AAP)’s share price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $58.40, but opened at $54.80. Advance Auto Parts shares last traded at $58.06, with a volume of 1,623,690 shares trading hands.

The company reported ($0.82) EPS for the quarter, missing analysts’ consensus estimates of $1.44 by ($2.26). The business had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.68 billion. Advance Auto Parts had a return on equity of 17.53% and a net margin of 3.08%. Advance Auto Parts’s revenue for the quarter was up 2.9% on a year-over-year basis. During the same quarter last year, the firm posted $2.84 EPS.

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 given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.67%. Advance Auto Parts’s dividend payout ratio (DPR) is currently 17.30%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on AAP. Wells Fargo & Company dropped their target price on shares of Advance Auto Parts from $70.00 to $60.00 and set an “equal weight” rating on the stock in a report on Monday. Royal Bank of Canada dropped their price target on Advance Auto Parts from $84.00 to $70.00 and set a “sector perform” rating on the stock in a research note on Thursday, August 24th. Evercore ISI reduced their price objective on shares of Advance Auto Parts from $80.00 to $75.00 and set an “in-line” rating for the company in a research report on Friday, September 8th. The Goldman Sachs Group cut their target price on shares of Advance Auto Parts from $90.00 to $83.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 23rd. Finally, Wedbush reissued a “neutral” rating and set a $80.00 price objective on shares of Advance Auto Parts in a research report on Thursday, August 24th. One analyst has rated the stock with a sell rating, twenty-one have assigned a hold rating and one has issued a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $89.25.

Insiders Place Their Bets

In other Advance Auto Parts news, Director Eugene I. Lee, Jr. acquired 8,670 shares of the business’s stock in a transaction on Wednesday, September 13th. The shares were acquired 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 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 is available at the SEC website. Insiders own 0.63% of the company’s stock.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors have recently bought and sold shares of AAP. ArrowMark Colorado Holdings LLC raised its position in shares of Advance Auto Parts by 4.7% in the fourth quarter. ArrowMark Colorado Holdings LLC now owns 1,717 shares of the company’s stock valued at $252,000 after purchasing an additional 77 shares during the period. Covestor Ltd raised its holdings in Advance Auto Parts by 113.7% during the 1st quarter. Covestor Ltd now owns 156 shares of the company’s stock valued at $32,000 after acquiring an additional 83 shares during the period. Kentucky Retirement Systems Insurance Trust Fund lifted its position in shares of Advance Auto Parts by 4.1% during the third quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,173 shares of the company’s stock worth $340,000 after acquiring an additional 86 shares in the last quarter. Wetherby Asset Management Inc. boosted its holdings in shares of Advance Auto Parts by 6.5% in the first quarter. Wetherby Asset Management Inc. now owns 1,418 shares of the company’s stock worth $293,000 after acquiring an additional 87 shares during the period. Finally, Baird Financial Group Inc. grew its position in shares of Advance Auto Parts by 0.6% in the fourth quarter. Baird Financial Group Inc. now owns 15,845 shares of the company’s stock valued at $2,329,000 after purchasing an additional 89 shares in the last quarter. Hedge funds and other institutional investors own 88.75% of the company’s stock.

Advance Auto Parts Stock Performance

The business has a 50 day moving average of $55.19 and a 200-day moving average of $72.23. The company has a market capitalization of $3.56 billion, a P/E ratio of 10.10, a price-to-earnings-growth ratio of 1.06 and a beta of 1.14. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.25 and a current ratio of 1.26.

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.