Advance Auto Parts (NYSE:AAP) Shares Down 4.4% After Analyst Downgrade

Shares of Advance Auto Parts, Inc. (NYSE:AAP) traded down 4.4% during mid-day trading on Tuesday after Evercore ISI lowered their price target on the stock from $71.00 to $67.00. Evercore ISI currently has an in-line rating on the stock. Advance Auto Parts traded as low as $38.93 and last traded at $39.19. 340,761 shares traded hands during trading, a decline of 83% from the average session volume of 1,953,665 shares. The stock had previously closed at $40.98.

Other equities research analysts have also issued research reports about the stock. TD Cowen lowered their target price on shares of Advance Auto Parts from $65.00 to $55.00 and set a “hold” rating on the stock in a report on Friday, August 23rd. Mizuho restated a “neutral” rating and issued a $38.00 target price (down previously from $45.00) on shares of Advance Auto Parts in a report on Thursday, September 12th. JPMorgan Chase & Co. lowered their target price on shares of Advance Auto Parts from $68.00 to $55.00 and set a “neutral” rating on the stock in a report on Friday, August 16th. Wells Fargo & Company lowered their target price on shares of Advance Auto Parts from $50.00 to $40.00 and set an “equal weight” rating on the stock in a report on Friday, September 13th. Finally, Roth Capital upgraded shares of Advance Auto Parts to a “hold” rating in a report on Tuesday, October 15th. One investment analyst has rated the stock with a sell rating, fifteen have issued a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $55.86.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Kovack Advisors Inc. boosted its holdings in Advance Auto Parts by 0.7% in the 1st quarter. Kovack Advisors Inc. now owns 22,727 shares of the company’s stock worth $1,934,000 after buying an additional 150 shares during the period. Benjamin F. Edwards & Company Inc. boosted its holdings in Advance Auto Parts by 28.0% in the 1st quarter. Benjamin F. Edwards & Company Inc. now owns 895 shares of the company’s stock worth $76,000 after buying an additional 196 shares during the period. Diversified Trust Co boosted its holdings in Advance Auto Parts by 3.5% in the 2nd quarter. Diversified Trust Co now owns 6,787 shares of the company’s stock worth $430,000 after buying an additional 232 shares during the period. OLD National Bancorp IN boosted its holdings in Advance Auto Parts by 6.8% in the 2nd quarter. OLD National Bancorp IN now owns 3,697 shares of the company’s stock worth $234,000 after buying an additional 237 shares during the period. Finally, Hexagon Capital Partners LLC boosted its holdings in Advance Auto Parts by 267.7% in the 1st quarter. Hexagon Capital Partners LLC now owns 353 shares of the company’s stock worth $30,000 after buying an additional 257 shares during the period. 88.75% of the stock is owned by institutional investors.

Advance Auto Parts Stock Performance

The company’s fifty day moving average is $43.65 and its 200 day moving average is $58.82. The company has a current ratio of 1.23, a quick ratio of 0.30 and a debt-to-equity ratio of 0.69. The company has a market capitalization of $2.31 billion, a P/E ratio of 56.16, a P/E/G ratio of 1.25 and a beta of 1.16.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings results on Thursday, August 22nd. The company reported $0.75 EPS for the quarter, missing the consensus estimate of $0.97 by ($0.22). Advance Auto Parts had a net margin of 0.01% and a return on equity of 0.05%. The firm had revenue of $2.68 billion during the quarter, compared to the consensus estimate of $2.67 billion. During the same period in the previous year, the business earned $1.43 earnings per share. The firm’s revenue for the quarter was down .1% on a year-over-year basis. As a group, equities analysts anticipate that Advance Auto Parts, Inc. will post 2.19 earnings per share for the current year.

Advance Auto Parts Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 25th. Shareholders of record on Friday, October 11th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 2.58%. The ex-dividend date is Friday, October 11th. Advance Auto Parts’s payout ratio is 144.93%.

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.