Advance Auto Parts Sees Unusually High Options Volume (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) saw unusually large options trading activity on Monday. Traders purchased 25,996 call options on the company. This represents an increase of approximately 255% compared to the average daily volume of 7,330 call options.

Institutional Investors Weigh In On Advance Auto Parts

Large investors have recently bought and sold shares of the company. Price T Rowe Associates Inc. MD increased its holdings in Advance Auto Parts by 18.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company’s stock valued at $293,751,000 after buying an additional 1,190,094 shares during the period. Pzena Investment Management LLC lifted its holdings in shares of Advance Auto Parts by 8.2% during the 1st quarter. Pzena Investment Management LLC now owns 4,301,089 shares of the company’s stock worth $226,882,000 after acquiring an additional 327,596 shares during the period. Federated Hermes Inc. boosted its position in shares of Advance Auto Parts by 4.4% during the 4th quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company’s stock worth $110,499,000 after acquiring an additional 117,648 shares in the last quarter. State Street Corp boosted its position in shares of Advance Auto Parts by 3.9% during the 4th quarter. State Street Corp now owns 2,499,981 shares of the company’s stock worth $98,249,000 after acquiring an additional 92,861 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in Advance Auto Parts by 15.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company’s stock valued at $112,243,000 after acquiring an additional 282,591 shares during the last quarter. 88.70% of the stock is currently owned by institutional investors and hedge funds.

Advance Auto Parts Price Performance

Advance Auto Parts stock traded down $2.54 during mid-day trading on Monday, reaching $55.41. 1,726,834 shares of the company were exchanged, compared to its average volume of 1,864,789. The company has a fifty day simple moving average of $57.26 and a 200-day simple moving average of $52.90. Advance Auto Parts has a 12 month low of $37.89 and a 12 month high of $70.00. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.85. The firm has a market cap of $3.34 billion, a PE ratio of 76.96, a PEG ratio of 0.95 and a beta of 1.03.

Advance Auto Parts (NYSE:AAP) last released its earnings results on Thursday, May 21st. The company reported $0.77 earnings per share for the quarter, beating analysts’ consensus estimates of $0.39 by $0.38. The firm had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.05 billion. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.The company’s revenue was up 1.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.40 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. As a group, equities research analysts expect that Advance Auto Parts will post 2.94 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Friday, July 10th. Advance Auto Parts’s payout ratio is 138.89%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on AAP shares. UBS Group boosted their price objective on Advance Auto Parts from $60.00 to $65.00 and gave the stock a “neutral” rating in a report on Friday, May 22nd. Royal Bank Of Canada boosted their price target on Advance Auto Parts from $62.00 to $65.00 and gave the company a “sector perform” rating in a research note on Friday, May 22nd. The Goldman Sachs Group upped their price objective on Advance Auto Parts from $49.00 to $54.00 and gave the company a “sell” rating in a report on Friday, May 22nd. JPMorgan Chase & Co. lowered their price objective on Advance Auto Parts from $64.00 to $59.00 and set a “neutral” rating on the stock in a research report on Friday, May 15th. Finally, Deutsche Bank Aktiengesellschaft raised Advance Auto Parts to a “buy” rating in a report on Friday, May 22nd. Two equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Advance Auto Parts has an average rating of “Hold” and an average price target of $58.66.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.