Advance Auto Parts (AAP) Trading 0.7% Higher Following Earnings Beat

Advance Auto Parts, Inc. (NYSE:AAP) traded up 0.7% during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $159.50 and last traded at $158.49. 69,621 shares were traded during mid-day trading, a decline of 94% from the average session volume of 1,167,541 shares. The stock had previously closed at $157.33.

The company reported $1.97 EPS for the quarter, topping analysts’ consensus estimates of $1.86 by $0.11. Advance Auto Parts had a return on equity of 13.09% and a net margin of 5.39%. The company had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.26 billion. During the same period in the previous year, the company earned $1.48 earnings per share. The company’s quarterly revenue was up 2.8% compared to the same quarter last year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 5th. Stockholders of record on Friday, September 21st will be issued a dividend of $0.06 per share. The ex-dividend date of this dividend is Thursday, September 20th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.15%. Advance Auto Parts’s dividend payout ratio (DPR) is presently 4.47%.

Advance Auto Parts declared that its Board of Directors has approved a share repurchase program on Tuesday, August 14th that allows the company to buyback $600.00 million in shares. This buyback authorization allows the company to repurchase up to 5.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

A number of research analysts have recently commented on the company. Stephens reiterated a “hold” rating and set a $155.00 price target on shares of Advance Auto Parts in a report on Thursday. Guggenheim reiterated a “buy” rating and set a $174.00 price target on shares of Advance Auto Parts in a report on Thursday. Royal Bank of Canada upped their price target on Advance Auto Parts to $170.00 and gave the stock an “outperform” rating in a report on Thursday. Deutsche Bank upped their price target on Advance Auto Parts from $155.00 to $171.00 and gave the stock a “buy” rating in a report on Wednesday. Finally, Morgan Stanley upped their price target on Advance Auto Parts from $140.00 to $170.00 and gave the stock an “overweight” rating in a report on Wednesday. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and thirteen have issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $143.11.

Several hedge funds and other institutional investors have recently modified their holdings of AAP. Piedmont Investment Advisors LLC acquired a new position in shares of Advance Auto Parts in the second quarter valued at $116,000. Tower Research Capital LLC TRC acquired a new position in shares of Advance Auto Parts in the second quarter valued at $117,000. Federated Investors Inc. PA acquired a new position in shares of Advance Auto Parts in the second quarter valued at $124,000. Stratos Wealth Partners LTD. raised its stake in shares of Advance Auto Parts by 1,148.4% in the first quarter. Stratos Wealth Partners LTD. now owns 1,186 shares of the company’s stock valued at $141,000 after purchasing an additional 1,091 shares in the last quarter. Finally, First Mercantile Trust Co. acquired a new position in shares of Advance Auto Parts in the second quarter valued at $162,000.

The company has a debt-to-equity ratio of 0.29, a current ratio of 1.61 and a quick ratio of 0.40. The company has a market cap of $10.83 billion, a P/E ratio of 29.70, a price-to-earnings-growth ratio of 1.96 and a beta of 1.12.

Advance Auto Parts Company Profile (NYSE:AAP)

Advance Auto Parts, Inc provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. It 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.

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