Advance Auto Parts (NYSE:AAP) Shares Gap Down on Disappointing Earnings

Advance Auto Parts, Inc. (NYSE:AAP) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $61.92, but opened at $48.40. Advance Auto Parts shares last traded at $50.69, with a volume of 2,005,757 shares changing hands.

The company reported $0.75 earnings per share for the quarter, missing the consensus estimate of $0.97 by ($0.22). The firm had revenue of $2.68 billion during the quarter, compared to analyst estimates of $2.67 billion. Advance Auto Parts had a net margin of 0.37% and a return on equity of 1.59%. Advance Auto Parts’s revenue was down .1% on a year-over-year basis. During the same quarter last year, the business earned $1.43 earnings per share.

Advance Auto Parts Announces Dividend

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

Analysts Set New Price Targets

Several brokerages have weighed in on AAP. Evercore ISI lowered their target price on shares of Advance Auto Parts from $64.00 to $60.00 and set an “in-line” rating for the company in a research note on Friday. Wedbush reaffirmed a “neutral” rating and issued a $55.00 price target (down previously from $65.00) on shares of Advance Auto Parts in a report on Friday. Bank of America raised their price target on shares of Advance Auto Parts from $51.00 to $55.00 and gave the stock an “underperform” rating in a report on Thursday, May 30th. StockNews.com raised shares of Advance Auto Parts from a “sell” rating to a “hold” rating in a report on Thursday, May 30th. Finally, Mizuho decreased their price target on shares of Advance Auto Parts from $78.00 to $64.00 and set a “neutral” rating for the company in a report on Monday, June 10th. One research analyst has rated the stock with a sell rating and fifteen have issued a hold rating to the stock. According to MarketBeat.com, Advance Auto Parts has a consensus rating of “Hold” and an average price target of $60.86.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD raised its holdings in shares of Advance Auto Parts by 1.0% during the first quarter. Price T Rowe Associates Inc. MD now owns 3,998,910 shares of the company’s stock worth $340,268,000 after purchasing an additional 40,669 shares during the last quarter. Charles Schwab Investment Management Inc. increased its holdings in Advance Auto Parts by 3.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,577,372 shares of the company’s stock valued at $96,267,000 after buying an additional 46,226 shares in the last quarter. Capital World Investors increased its holdings in Advance Auto Parts by 67.0% in the first quarter. Capital World Investors now owns 1,533,933 shares of the company’s stock valued at $130,522,000 after buying an additional 615,674 shares in the last quarter. Third Point LLC purchased a new position in Advance Auto Parts in the first quarter valued at $127,234,000. Finally, Dimensional Fund Advisors LP increased its holdings in Advance Auto Parts by 76.2% in the second quarter. Dimensional Fund Advisors LP now owns 1,266,362 shares of the company’s stock valued at $80,197,000 after buying an additional 547,696 shares in the last quarter. Hedge funds and other institutional investors own 88.75% of the company’s stock.

Advance Auto Parts Stock Down 3.8 %

The company has a debt-to-equity ratio of 0.70, a current ratio of 1.22 and a quick ratio of 0.29. The business’s fifty day simple moving average is $60.93 and its two-hundred day simple moving average is $68.59. The company has a market cap of $2.93 billion, a PE ratio of 71.22, a PEG ratio of 1.20 and a beta of 1.20.

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.