Advance Auto Parts (NYSE:AAP) Shares Gap Down After Insider Selling

Advance Auto Parts, Inc. (NYSE:AAPGet Free Report) gapped down before the market opened on Tuesday following insider selling activity. The stock had previously closed at $51.93, but opened at $49.91. Advance Auto Parts shares last traded at $47.96, with a volume of 1,137,258 shares trading hands.

Specifically, SVP Jason Hand sold 948 shares of the firm’s stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $48.52, for a total value of $45,996.96. Following the transaction, the senior vice president now directly owns 9,876 shares of the company’s stock, valued at approximately $479,183.52. This trade represents a 8.76% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on AAP shares. Morgan Stanley raised their price target on shares of Advance Auto Parts from $45.00 to $48.00 and gave the stock an “equal weight” rating in a research note on Friday, May 23rd. Wedbush reaffirmed an “outperform” rating and set a $55.00 target price on shares of Advance Auto Parts in a research note on Monday, March 3rd. The Goldman Sachs Group downgraded shares of Advance Auto Parts from a “neutral” rating to a “sell” rating and reduced their target price for the stock from $48.00 to $46.00 in a research note on Tuesday. UBS Group reaffirmed a “neutral” rating and set a $50.00 target price (up from $36.00) on shares of Advance Auto Parts in a research note on Friday, May 23rd. Finally, DA Davidson lifted their target price on shares of Advance Auto Parts from $45.00 to $47.00 and gave the stock a “neutral” rating in a research note on Friday, May 23rd. Two research analysts have rated the stock with a sell rating, twenty have assigned a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $46.25.

Read Our Latest Stock Analysis on AAP

Advance Auto Parts Stock Performance

The firm has a market capitalization of $2.80 billion, a price-to-earnings ratio of -7.96 and a beta of 1.06. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.27 and a quick ratio of 0.49. The firm has a 50 day moving average price of $41.35 and a 200-day moving average price of $41.78.

Advance Auto Parts (NYSE:AAPGet Free Report) last announced its quarterly earnings data on Thursday, May 22nd. The company reported ($0.22) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.81) by $0.59. The business had revenue of $2.58 billion for the quarter, compared to analysts’ expectations of $2.51 billion. Advance Auto Parts had a negative return on equity of 1.76% and a negative net margin of 3.74%. The company’s revenue for the quarter was down 24.2% compared to the same quarter last year. During the same period last year, the firm earned $0.67 earnings per share. As a group, sell-side analysts expect that Advance Auto Parts, Inc. will post -0.46 earnings per share for the current fiscal year.

Advance Auto Parts Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 25th. Shareholders of record on Friday, July 11th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.14%. The ex-dividend date is Friday, July 11th. Advance Auto Parts’s dividend payout ratio (DPR) is presently -17.04%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in AAP. Allworth Financial LP grew its holdings in Advance Auto Parts by 1,543.4% during the 4th quarter. Allworth Financial LP now owns 871 shares of the company’s stock worth $40,000 after acquiring an additional 818 shares in the last quarter. Principal Financial Group Inc. grew its holdings in Advance Auto Parts by 2.4% during the 4th quarter. Principal Financial Group Inc. now owns 287,732 shares of the company’s stock worth $13,607,000 after acquiring an additional 6,867 shares in the last quarter. Truist Financial Corp grew its holdings in Advance Auto Parts by 30.4% during the 4th quarter. Truist Financial Corp now owns 15,961 shares of the company’s stock worth $755,000 after acquiring an additional 3,722 shares in the last quarter. Ieq Capital LLC acquired a new position in Advance Auto Parts during the 4th quarter worth approximately $910,000. Finally, Sims Investment Management LLC acquired a new position in Advance Auto Parts during the 4th quarter worth approximately $309,000. Institutional investors and hedge funds own 88.75% of the company’s stock.

About Advance Auto Parts

(Get Free Report)

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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