Investors Buy Large Volume of Put Options on Advance Auto Parts (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) was the target of some unusual options trading activity on Friday. Stock traders acquired 17,829 put options on the company. This is an increase of approximately 157% compared to the typical volume of 6,931 put options.

Advance Auto Parts Stock Performance

NYSE AAP opened at $49.14 on Friday. The company has a fifty day simple moving average of $60.93 and a 200 day simple moving average of $68.59. Advance Auto Parts has a 12-month low of $47.73 and a 12-month high of $88.56. The company has a current ratio of 1.22, a quick ratio of 0.29 and a debt-to-equity ratio of 0.70. The company has a market cap of $2.93 billion, a P/E ratio of 71.22, a PEG ratio of 1.20 and a beta of 1.20.

Advance Auto Parts (NYSE:AAP) last posted 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). Advance Auto Parts had a net margin of 0.37% and a return on equity of 1.59%. The business had revenue of $2.68 billion during the quarter, compared to analyst estimates of $2.67 billion. During the same period in the previous year, the business posted $1.43 EPS. The business’s revenue for the quarter was down .1% compared to the same quarter last year. Sell-side analysts predict that Advance Auto Parts will post 3.7 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 25th. Shareholders of record on Friday, October 11th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.04%. The ex-dividend date is Friday, October 11th. Advance Auto Parts’s dividend payout ratio (DPR) is presently 144.93%.

Analyst Upgrades and Downgrades

AAP has been the subject of a number of recent analyst reports. StockNews.com raised shares of Advance Auto Parts from a “sell” rating to a “hold” rating in a research report on Thursday, May 30th. JPMorgan Chase & Co. decreased their target price on shares of Advance Auto Parts from $68.00 to $55.00 and set a “neutral” rating for the company in a research report on Friday, August 16th. Truist Financial decreased their target price on shares of Advance Auto Parts from $63.00 to $46.00 and set a “hold” rating for the company in a research report on Friday. Wells Fargo & Company reissued a “hold” rating and set a $60.00 target price on shares of Advance Auto Parts in a research report on Tuesday. Finally, Evercore ISI reduced their price objective on shares of Advance Auto Parts from $64.00 to $60.00 and set an “in-line” rating for the company in a research report on Friday. One analyst has rated the stock with a sell rating and fifteen have assigned a hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $60.86.

Hedge Funds Weigh In On Advance Auto Parts

Large investors have recently bought and sold shares of the stock. Principal Securities Inc. bought a new position in Advance Auto Parts during the 4th quarter valued at $27,000. Hexagon Capital Partners LLC lifted its stake in Advance Auto Parts by 267.7% during the 1st quarter. Hexagon Capital Partners LLC now owns 353 shares of the company’s stock valued at $30,000 after acquiring an additional 257 shares in the last quarter. Allspring Global Investments Holdings LLC bought a new position in Advance Auto Parts during the 1st quarter valued at $34,000. Mather Group LLC. lifted its stake 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 acquiring an additional 596 shares in the last quarter. Finally, Ashton Thomas Private Wealth LLC bought a new position in Advance Auto Parts during the 2nd quarter valued at $41,000. 88.75% of the stock is currently owned by institutional investors.

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.