Advance Auto Parts (NYSE:AAP) Stock Price Down 4.4% Following Analyst Downgrade

Advance Auto Parts, Inc. (NYSE:AAP)’s stock price dropped 4.4% on Tuesday after Evercore ISI lowered their price target on the stock from $71.00 to $67.00. Evercore ISI currently has an in-line rating on the stock. Advance Auto Parts traded as low as $38.93 and last traded at $39.19. Approximately 340,761 shares changed hands during trading, a decline of 83% from the average daily volume of 1,953,665 shares. The stock had previously closed at $40.98.

AAP has been the topic of a number of other research reports. Wells Fargo & Company dropped their price target on Advance Auto Parts from $50.00 to $40.00 and set an “equal weight” rating on the stock in a research report on Friday, September 13th. Roth Mkm reissued a “neutral” rating and set a $40.00 price target on shares of Advance Auto Parts in a research report on Wednesday, October 16th. JPMorgan Chase & Co. dropped their price target on Advance Auto Parts from $68.00 to $55.00 and set a “neutral” rating on the stock in a research report on Friday, August 16th. Wedbush raised Advance Auto Parts from a “neutral” rating to an “outperform” rating and set a $55.00 price target on the stock in a research report on Tuesday, October 15th. Finally, Mizuho reissued a “neutral” rating and issued a $38.00 price target (down previously from $45.00) on shares of Advance Auto Parts in a report on Thursday, September 12th. One research analyst has rated the stock with a sell rating, fifteen have issued a hold rating and one has given a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $55.86.

Institutional Trading of Advance Auto Parts

Several large investors have recently made changes to their positions in the company. Price T Rowe Associates Inc. MD increased its position 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 in the last quarter. Capital World Investors grew its holdings in Advance Auto Parts by 67.0% in the 1st 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 stake in Advance Auto Parts in the 1st quarter valued at $127,234,000. Dimensional Fund Advisors LP grew its holdings in Advance Auto Parts by 76.2% in the 2nd 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. Finally, Dorsal Capital Management LP grew its holdings in Advance Auto Parts by 159.7% in the 2nd quarter. Dorsal Capital Management LP now owns 1,250,000 shares of the company’s stock valued at $79,162,000 after buying an additional 768,664 shares in the last quarter. 88.75% of the stock is currently owned by hedge funds and other institutional investors.

Advance Auto Parts Trading Down 2.3 %

The company has a current ratio of 1.23, a quick ratio of 0.30 and a debt-to-equity ratio of 0.69. The company has a fifty day simple moving average of $43.20 and a 200-day simple moving average of $58.68. The company has a market capitalization of $2.26 billion, a PE ratio of 54.86, a PEG ratio of 1.25 and a beta of 1.16.

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

Advance Auto Parts Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 25th. Stockholders of record on Friday, October 11th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 2.64%. The ex-dividend date of this dividend is Friday, October 11th. Advance Auto Parts’s dividend payout ratio (DPR) is presently 144.93%.

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.