Advance Auto Parts (NYSE:AAP) Shares Gap Down Following Insider Selling

Advance Auto Parts, Inc. (NYSE:AAP)’s stock price gapped down before the market opened on Tuesday after an insider sold shares in the company. The stock had previously closed at $51.93, but opened at $49.91. Advance Auto Parts shares last traded at $47.96, with a volume of 1,137,258 shares.

Specifically, SVP Jason Hand sold 948 shares of the stock in a transaction on Friday, June 20th. The stock was sold at an average price of $48.52, for a total transaction of $45,996.96. Following the sale, the senior vice president now owns 9,876 shares in the company, valued at approximately $479,183.52. This represents a 8.76% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink.

Analyst Ratings Changes

A number of brokerages recently issued reports on AAP. DA Davidson raised their price target on Advance Auto Parts from $45.00 to $47.00 and gave the stock a “neutral” rating in a research note on Friday, May 23rd. Morgan Stanley increased their price objective on shares of Advance Auto Parts from $45.00 to $48.00 and gave the company an “equal weight” rating in a research note on Friday, May 23rd. Wells Fargo & Company set a $35.00 target price on shares of Advance Auto Parts and gave the stock an “equal weight” rating in a report on Monday, May 19th. Truist Financial reduced their price target on Advance Auto Parts from $39.00 to $34.00 and set a “hold” rating on the stock in a research report on Thursday, February 27th. Finally, UBS Group reiterated a “neutral” rating and set a $50.00 price objective (up previously from $36.00) on shares of Advance Auto Parts in a report on Friday, May 23rd. Two investment analysts have rated the stock with a sell rating, twenty have given a hold rating and one has assigned a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $46.15.

Advance Auto Parts Stock Performance

The business’s 50-day simple moving average is $40.72 and its two-hundred day simple moving average is $41.70. The company has a quick ratio of 0.49, a current ratio of 1.27 and a debt-to-equity ratio of 0.68. The firm has a market cap of $2.86 billion, a price-to-earnings ratio of -8.12 and a beta of 1.06.

Advance Auto Parts (NYSE:AAP) last announced its earnings results on Thursday, May 22nd. The company reported ($0.22) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.81) by $0.59. The firm had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.51 billion. Advance Auto Parts had a negative return on equity of 1.76% and a negative net margin of 3.74%. The business’s revenue was down 24.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.67 EPS. As a group, sell-side analysts expect that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, July 11th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 2.10%. The ex-dividend date of this dividend is Friday, July 11th. Advance Auto Parts’s dividend payout ratio is currently -17.04%.

Institutional Investors Weigh In On Advance Auto Parts

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Annandale Capital LLC grew its position in shares of Advance Auto Parts by 46.6% in the fourth quarter. Annandale Capital LLC now owns 109,241 shares of the company’s stock valued at $5,166,000 after purchasing an additional 34,746 shares in the last quarter. Raymond James Financial Inc. purchased a new stake in Advance Auto Parts in the 4th quarter valued at $8,822,000. Commonwealth Equity Services LLC grew its holdings in Advance Auto Parts by 97.2% in the 4th quarter. Commonwealth Equity Services LLC now owns 305,622 shares of the company’s stock valued at $14,453,000 after buying an additional 150,604 shares in the last quarter. Segall Bryant & Hamill LLC acquired a new stake in shares of Advance Auto Parts in the 4th quarter worth $34,586,000. Finally, Charles Schwab Investment Management Inc. raised its holdings in shares of Advance Auto Parts by 18.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 649,919 shares of the company’s stock worth $30,735,000 after acquiring an additional 100,445 shares during the period. Institutional investors and hedge funds own 88.75% of the company’s stock.

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.