Advance Auto Parts, Inc. (AAP) Receives Consensus Rating of “Buy” from Analysts

Advance Auto Parts, Inc. (NYSE:AAP) has received a consensus recommendation of “Buy” from the twenty research firms that are covering the stock, Marketbeat.com reports. Seven investment analysts have rated the stock with a hold recommendation and twelve have assigned a buy recommendation to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $179.56.

A number of research firms have recently weighed in on AAP. Zacks Investment Research downgraded Advance Auto Parts from a “buy” rating to a “hold” rating in a report on Friday, November 16th. Deutsche Bank set a $205.00 target price on Advance Auto Parts and gave the stock a “buy” rating in a report on Wednesday, November 14th. UBS Group lifted their target price on Advance Auto Parts from $190.00 to $215.00 and gave the stock a “buy” rating in a report on Wednesday, November 14th. Royal Bank of Canada raised their price target on Advance Auto Parts to $170.00 and gave the stock an “outperform” rating in a research report on Thursday, August 16th. Finally, Credit Suisse Group set a $195.00 price target on Advance Auto Parts and gave the stock a “buy” rating in a research report on Wednesday, November 14th.

Advance Auto Parts stock traded up $2.57 during mid-day trading on Friday, hitting $177.24. 325,515 shares of the company’s stock traded hands, compared to its average volume of 1,342,124. Advance Auto Parts has a fifty-two week low of $88.82 and a fifty-two week high of $186.15. The company has a market capitalization of $12.73 billion, a price-to-earnings ratio of 33.01, a P/E/G ratio of 2.04 and a beta of 1.04. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.62 and a quick ratio of 0.49.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings results on Tuesday, November 13th. The company reported $1.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.75 by $0.14. Advance Auto Parts had a return on equity of 13.99% and a net margin of 5.83%. The business had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.23 billion. During the same quarter last year, the firm posted $1.43 EPS. The company’s quarterly revenue was up 4.3% on a year-over-year basis. As a group, equities analysts anticipate that Advance Auto Parts will post 7.09 earnings per share for the current fiscal year.

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

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 4th. Shareholders of record on Friday, December 21st will be given a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a yield of 0.14%. The ex-dividend date of this dividend is Thursday, December 20th. Advance Auto Parts’s dividend payout ratio is presently 4.47%.

In other Advance Auto Parts news, Director Fiona P. Dias sold 1,048 shares of Advance Auto Parts stock in a transaction dated Friday, November 16th. The stock was sold at an average price of $177.54, for a total value of $186,061.92. Following the transaction, the director now owns 11,693 shares in the company, valued at $2,075,975.22. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 4.50% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in AAP. Principal Financial Group Inc. grew its position in Advance Auto Parts by 2.1% in the first quarter. Principal Financial Group Inc. now owns 111,312 shares of the company’s stock valued at $13,196,000 after acquiring an additional 2,294 shares during the last quarter. IFM Investors Pty Ltd grew its holdings in shares of Advance Auto Parts by 44.9% during the second quarter. IFM Investors Pty Ltd now owns 3,258 shares of the company’s stock worth $442,000 after purchasing an additional 1,009 shares during the last quarter. State of Alaska Department of Revenue grew its holdings in shares of Advance Auto Parts by 35.1% during the second quarter. State of Alaska Department of Revenue now owns 19,410 shares of the company’s stock worth $2,632,000 after purchasing an additional 5,040 shares during the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund grew its holdings in shares of Advance Auto Parts by 3.7% during the second quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 21,578 shares of the company’s stock worth $2,928,000 after purchasing an additional 779 shares during the last quarter. Finally, Bank of Montreal Can grew its holdings in shares of Advance Auto Parts by 106.4% during the second quarter. Bank of Montreal Can now owns 125,067 shares of the company’s stock worth $16,972,000 after purchasing an additional 64,467 shares during the last quarter. Hedge funds and other institutional investors own 97.62% of the company’s stock.

Advance Auto Parts Company Profile

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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Analyst Recommendations for Advance Auto Parts (NYSE:AAP)

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