Advance Auto Parts (NYSE:AAP) Shares Gap Up – Should You Buy?

Shares of Advance Auto Parts, Inc. (NYSE:AAP) gapped up before the market opened on Thursday . The stock had previously closed at $40.94, but opened at $43.49. Advance Auto Parts shares last traded at $44.10, with a volume of 2,062,627 shares.

Analysts Set New Price Targets

Several equities analysts have commented on the company. JPMorgan Chase & Co. cut their price target on Advance Auto Parts from $68.00 to $55.00 and set a “neutral” rating for the company in a report on Friday, August 16th. Roth Mkm reaffirmed a “neutral” rating and issued a $40.00 target price on shares of Advance Auto Parts in a research report on Wednesday, October 16th. Evercore ISI lowered their price target on shares of Advance Auto Parts from $71.00 to $67.00 and set an “in-line” rating on the stock in a report on Tuesday, October 22nd. UBS Group raised their price objective on shares of Advance Auto Parts from $42.00 to $44.00 and gave the stock a “neutral” rating in a report on Friday. Finally, DA Davidson reiterated a “neutral” rating and set a $45.00 target price on shares of Advance Auto Parts in a research report on Friday. One research analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and one has given a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $49.14.

Advance Auto Parts Trading Down 8.5 %

The business has a 50 day simple moving average of $39.02 and a 200 day simple moving average of $54.37. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.23 and a quick ratio of 0.30. The company has a market cap of $2.25 billion, a price-to-earnings ratio of 51.62, a price-to-earnings-growth ratio of 1.33 and a beta of 1.17.

Advance Auto Parts (NYSE:AAP) last issued its quarterly earnings results on Thursday, August 22nd. The company reported $0.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.97 by ($0.22). The company had revenue of $2.68 billion for the quarter, compared to analyst estimates of $2.67 billion. Advance Auto Parts had a return on equity of 0.05% and a net margin of 0.01%. The firm’s quarterly revenue was down .1% on a year-over-year basis. During the same quarter last year, the company earned $1.43 EPS. As a group, equities analysts forecast that Advance Auto Parts, Inc. will post 2.19 EPS for the current year.

Advance Auto Parts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, January 24th. Investors of record on Friday, January 10th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.65%. The ex-dividend date is Friday, January 10th. Advance Auto Parts’s dividend payout ratio is currently 136.99%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of AAP. Allspring Global Investments Holdings LLC acquired a new position in shares of Advance Auto Parts during the first quarter valued at $34,000. Mather Group LLC. lifted its position in Advance Auto Parts by 1,241.7% during the 2nd quarter. Mather Group LLC. now owns 644 shares of the company’s stock valued at $41,000 after purchasing an additional 596 shares during the period. Ashton Thomas Private Wealth LLC bought a new position in shares of Advance Auto Parts in the 2nd quarter valued at about $41,000. Blue Trust Inc. grew its position in shares of Advance Auto Parts by 56.7% during the 3rd quarter. Blue Trust Inc. now owns 1,205 shares of the company’s stock worth $47,000 after buying an additional 436 shares during the period. Finally, AM Squared Ltd bought a new stake in shares of Advance Auto Parts during the second quarter worth approximately $63,000. Institutional investors and hedge funds own 88.75% of the company’s stock.

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.