Advance Auto Parts (NYSE:AAP) Releases Quarterly Earnings Results, Beats Expectations By $0.59 EPS

Advance Auto Parts (NYSE:AAP) issued its quarterly earnings results on Thursday. The company reported ($0.22) earnings per share for the quarter, topping the consensus estimate of ($0.81) by $0.59, RTT News reports. Advance Auto Parts had a return on equity of 1.82% and a net margin of 0.41%. The firm had revenue of $2.58 billion for the quarter, compared to the consensus estimate of $2.51 billion. During the same period in the prior year, the business posted $0.67 earnings per share. The company’s revenue for the quarter was down 24.2% on a year-over-year basis. Advance Auto Parts updated its FY 2025 guidance to 1.500-2.500 EPS.

Advance Auto Parts Stock Down 1.0%

Advance Auto Parts stock opened at $48.70 on Friday. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.34 and a quick ratio of 0.62. The stock has a market capitalization of $2.91 billion, a price-to-earnings ratio of 66.71, a PEG ratio of 1.98 and a beta of 0.93. Advance Auto Parts has a 1-year low of $28.89 and a 1-year high of $71.62. The business has a fifty day moving average price of $34.63 and a 200-day moving average price of $40.37.

Advance Auto Parts Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 25th. Stockholders of record on Friday, July 11th will be given a $0.25 dividend. The ex-dividend date is Friday, July 11th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.05%. Advance Auto Parts’s payout ratio is -17.86%.

Insider Transactions at Advance Auto Parts

In other news, Director Eugene I. Lee, Jr. purchased 14,640 shares of the stock in a transaction on Thursday, March 6th. The stock was bought at an average price of $34.15 per share, with a total value of $499,956.00. Following the transaction, the director now owns 34,070 shares in the company, valued at $1,163,490.50. The trade was a 75.35% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Shane M. Okelly purchased 1,500 shares of the stock in a transaction on Tuesday, March 11th. The shares were purchased at an average cost of $36.79 per share, with a total value of $55,185.00. Following the transaction, the chief executive officer now owns 183,121 shares in the company, valued at $6,737,021.59. This trade represents a 0.83% increase in their position. The disclosure for this purchase can be found here. Insiders own 0.67% of the company’s stock.

Institutional Trading of Advance Auto Parts

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Advance Auto Parts by 14.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company’s stock worth $7,096,000 after acquiring an additional 23,018 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Advance Auto Parts by 327.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company’s stock valued at $14,230,000 after buying an additional 278,066 shares during the period. Finally, Royal Bank of Canada lifted its holdings in shares of Advance Auto Parts by 107.2% in the 1st quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock valued at $3,119,000 after buying an additional 41,157 shares during the period. Institutional investors and hedge funds own 88.75% of the company’s stock.

Wall Street Analyst Weigh In

AAP has been the topic of several recent analyst reports. Wells Fargo & Company set a $35.00 price target on Advance Auto Parts and gave the stock an “equal weight” rating in a report on Monday, May 19th. UBS Group raised their price objective on Advance Auto Parts from $36.00 to $50.00 and gave the stock a “neutral” rating in a report on Friday. Morgan Stanley raised their price objective on Advance Auto Parts from $45.00 to $48.00 and gave the stock an “equal weight” rating in a report on Friday. Citigroup reduced their price objective on Advance Auto Parts from $47.00 to $40.00 and set a “neutral” rating on the stock in a report on Thursday, February 27th. Finally, Truist Financial reduced their price objective on Advance Auto Parts from $39.00 to $34.00 and set a “hold” rating on the stock in a report on Thursday, February 27th. One investment analyst has rated the stock with a sell rating, seventeen have given a hold rating and one has issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $45.71.

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.