Advance Auto Parts Sees Unusually High Options Volume (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) was the recipient of some unusual options trading activity on Monday. Stock traders acquired 12,678 call options on the company. This represents an increase of 2,056% compared to the typical daily volume of 588 call options.

Shares of AAP stock traded down $0.40 during trading on Tuesday, reaching $144.86. 8,048 shares of the company’s stock traded hands, compared to its average volume of 711,395. The company has a market capitalization of $10.32 billion, a P/E ratio of 20.35, a PEG ratio of 1.52 and a beta of 0.84. The company has a current ratio of 1.31, a quick ratio of 0.32 and a debt-to-equity ratio of 0.79. The firm’s 50-day moving average is $156.25 and its 200 day moving average is $155.04. Advance Auto Parts has a 1 year low of $130.09 and a 1 year high of $182.56.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings results on Tuesday, November 12th. The company reported $2.10 EPS for the quarter, beating the Zacks’ consensus estimate of $2.05 by $0.05. The company had revenue of $2.31 billion for the quarter, compared to analysts’ expectations of $2.30 billion. Advance Auto Parts had a net margin of 4.58% and a return on equity of 15.61%. Advance Auto Parts’s revenue was up 1.6% compared to the same quarter last year. During the same period in the prior year, the company posted $1.89 EPS. As a group, sell-side analysts predict that Advance Auto Parts will post 7.94 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Friday, January 3rd. Investors of record on Friday, December 20th were paid a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.17%. The ex-dividend date of this dividend was Thursday, December 19th. Advance Auto Parts’s payout ratio is currently 3.37%.

Several hedge funds have recently made changes to their positions in the stock. Doyle Wealth Management bought a new stake in Advance Auto Parts during the 2nd quarter worth approximately $31,000. CSat Investment Advisory L.P. increased its holdings in Advance Auto Parts by 66.9% during the 2nd quarter. CSat Investment Advisory L.P. now owns 292 shares of the company’s stock worth $45,000 after acquiring an additional 117 shares during the period. Cullen Frost Bankers Inc. increased its holdings in Advance Auto Parts by 3,687.5% during the 3rd quarter. Cullen Frost Bankers Inc. now owns 303 shares of the company’s stock worth $50,000 after acquiring an additional 295 shares during the period. Citizens Financial Group Inc RI increased its holdings in Advance Auto Parts by 38.9% during the 3rd quarter. Citizens Financial Group Inc RI now owns 307 shares of the company’s stock worth $51,000 after acquiring an additional 86 shares during the period. Finally, Allred Capital Management LLC bought a new stake in Advance Auto Parts during the 4th quarter worth approximately $64,000.

A number of research analysts have weighed in on the stock. Wolfe Research cut shares of Advance Auto Parts from an “outperform” rating to a “peer perform” rating and set a $128.00 target price on the stock. in a research note on Tuesday, October 8th. Nomura reiterated a “hold” rating and issued a $160.00 target price (down from $162.00) on shares of Advance Auto Parts in a research note on Wednesday, November 13th. JPMorgan Chase & Co. cut shares of Advance Auto Parts from an “overweight” rating to a “neutral” rating and dropped their target price for the company from $168.00 to $163.00 in a research note on Monday. Wedbush dropped their target price on shares of Advance Auto Parts to in a research note on Monday. Finally, Wells Fargo & Co reiterated a “hold” rating and issued a $165.00 target price on shares of Advance Auto Parts in a research note on Wednesday, January 8th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and ten have assigned a buy rating to the stock. Advance Auto Parts has an average rating of “Buy” and an average price target of $166.86.

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.

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