Advance Auto Parts Target of Unusually High Options Trading (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) was the recipient of some unusual options trading on Wednesday. Traders acquired 10,156 call options on the company. This represents an increase of 43% compared to the average volume of 7,114 call options.

Hedge Funds Weigh In On Advance Auto Parts

Hedge funds and other institutional investors have recently made changes to their positions in the business. Savoir Faire Capital Management L.P. increased its stake in shares of Advance Auto Parts by 11.4% in the third quarter. Savoir Faire Capital Management L.P. now owns 226,990 shares of the company’s stock worth $13,937,000 after buying an additional 23,172 shares during the last quarter. Federated Hermes Inc. boosted its stake in Advance Auto Parts by 12.8% during the 3rd quarter. Federated Hermes Inc. now owns 2,694,027 shares of the company’s stock valued at $165,413,000 after acquiring an additional 306,702 shares during the last quarter. Parkwood LLC bought a new position in Advance Auto Parts during the 2nd quarter valued at $16,922,000. JPMorgan Chase & Co. grew its holdings in Advance Auto Parts by 436.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 266,111 shares of the company’s stock worth $12,372,000 after acquiring an additional 216,504 shares in the last quarter. Finally, CSM Advisors LLC grew its holdings in Advance Auto Parts by 71.6% during the 3rd quarter. CSM Advisors LLC now owns 89,867 shares of the company’s stock worth $5,517,000 after acquiring an additional 37,486 shares in the last quarter. Institutional investors and hedge funds own 88.70% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on AAP. Royal Bank Of Canada lifted their price objective on Advance Auto Parts from $57.00 to $63.00 and gave the stock a “sector perform” rating in a research report on Tuesday, February 17th. TD Cowen reissued a “hold” rating on shares of Advance Auto Parts in a research report on Tuesday, February 17th. BMO Capital Markets boosted their price target on Advance Auto Parts from $55.00 to $60.00 and gave the stock a “market perform” rating in a report on Tuesday, February 17th. Morgan Stanley set a $60.00 price objective on Advance Auto Parts in a research report on Tuesday, February 17th. Finally, UBS Group reaffirmed a “neutral” rating on shares of Advance Auto Parts in a research note on Monday, February 9th. Two equities research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $52.93.

Advance Auto Parts Trading Down 2.1%

Shares of AAP opened at $48.34 on Friday. Advance Auto Parts has a fifty-two week low of $28.89 and a fifty-two week high of $70.00. The company has a market capitalization of $2.91 billion, a PE ratio of 66.22, a price-to-earnings-growth ratio of 0.66 and a beta of 1.11. The stock has a fifty day moving average of $50.85 and a two-hundred day moving average of $51.55. The company has a debt-to-equity ratio of 1.55, a quick ratio of 0.87 and a current ratio of 1.75.

Advance Auto Parts (NYSE:AAP) last posted its quarterly earnings data on Friday, February 13th. The company reported $0.86 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.45. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The company had revenue of $1.97 billion during the quarter, compared to the consensus estimate of $1.95 billion. During the same quarter in the prior year, the company posted ($10.16) EPS. The company’s quarterly revenue was down 1.2% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. As a group, analysts forecast that Advance Auto Parts will post -0.46 EPS for the current year.

Advance Auto Parts Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, April 10th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Friday, April 10th. Advance Auto Parts’s payout ratio is 136.99%.

About Advance Auto Parts

Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.