Advance Auto Parts, Inc. (NYSE:AAP) Sees Large Drop in Short Interest

Advance Auto Parts, Inc. (NYSE:AAP) was the target of a significant drop in short interest during the month of January. As of January 31st, there was short interest totalling 2,210,000 shares, a drop of 8.3% from the January 15th total of 2,410,000 shares. Based on an average trading volume of 1,040,000 shares, the short-interest ratio is currently 2.1 days. Approximately 3.2% of the shares of the stock are short sold.

Shares of Advance Auto Parts stock opened at $133.59 on Friday. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.32 and a current ratio of 1.31. Advance Auto Parts has a 52-week low of $129.94 and a 52-week high of $182.56. The stock has a market capitalization of $9.33 billion, a price-to-earnings ratio of 21.55, a P/E/G ratio of 1.38 and a beta of 0.88. The company’s 50 day moving average price is $145.51 and its 200-day moving average price is $152.29.

Advance Auto Parts (NYSE:AAP) last issued its earnings results on Tuesday, November 12th. The company reported $2.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.05. Advance Auto Parts had a net margin of 4.58% and a return on equity of 15.61%. The firm had revenue of $2.31 billion for the quarter, compared to analysts’ expectations of $2.30 billion. During the same quarter last year, the business earned $1.89 earnings per share. The business’s revenue was up 1.6% on a year-over-year basis. As a group, equities research analysts forecast that Advance Auto Parts will post 7.93 earnings per share for the current fiscal year.

A number of brokerages have commented on AAP. JPMorgan Chase & Co. cut shares of Advance Auto Parts from an “overweight” rating to a “neutral” rating and reduced their price target for the company from $168.00 to $163.00 in a research report on Monday, January 13th. Wells Fargo & Co reduced their price target on shares of Advance Auto Parts from $165.00 to $140.00 and set an “equal weight” rating on the stock in a research report on Tuesday. Wedbush reduced their price target on shares of Advance Auto Parts to in a research report on Monday, January 13th. Nomura reiterated a “hold” rating and set a $160.00 price target (down from $162.00) on shares of Advance Auto Parts in a research report on Wednesday, November 13th. Finally, Atlantic Securities cut shares of Advance Auto Parts from an “overweight” rating to a “neutral” rating and set a $159.00 price target on the stock. in a research report on Thursday, January 23rd. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and ten have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $164.33.

Several institutional investors have recently modified their holdings of AAP. Bank of America Corp DE grew its holdings in shares of Advance Auto Parts by 52.5% in the fourth quarter. Bank of America Corp DE now owns 1,132,971 shares of the company’s stock worth $181,457,000 after purchasing an additional 390,256 shares during the last quarter. William Blair Investment Management LLC grew its holdings in shares of Advance Auto Parts by 66.5% in the fourth quarter. William Blair Investment Management LLC now owns 926,038 shares of the company’s stock worth $148,314,000 after purchasing an additional 369,905 shares during the last quarter. BlackRock Inc. grew its holdings in shares of Advance Auto Parts by 7.2% in the second quarter. BlackRock Inc. now owns 5,326,148 shares of the company’s stock worth $820,972,000 after purchasing an additional 358,324 shares during the last quarter. Alyeska Investment Group L.P. bought a new position in shares of Advance Auto Parts in the fourth quarter worth approximately $27,937,000. Finally, Bank of Montreal Can grew its holdings in shares of Advance Auto Parts by 74.0% in the fourth quarter. Bank of Montreal Can now owns 393,512 shares of the company’s stock worth $63,026,000 after purchasing an additional 167,307 shares during the last quarter.

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.

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