Advance Auto Parts (NYSE:AAP) Shares Down 4.3% - Here's What Happened

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) traded down 4.3% during mid-day trading on Friday . The stock traded as low as $46.06 and last traded at $46.07. 405,061 shares traded hands during trading, a decline of 63% from the average session volume of 1,087,307 shares. The stock had previously closed at $48.14.

Analyst Upgrades and Downgrades

AAP has been the subject of several recent analyst reports. DA Davidson reiterated a "neutral" rating and issued a $45.00 target price on shares of Advance Auto Parts in a report on Friday, November 15th. Truist Financial lowered their price objective on shares of Advance Auto Parts from $41.00 to $39.00 and set a "hold" rating on the stock in a research report on Friday, November 15th. Wells Fargo & Company reduced their target price on Advance Auto Parts from $50.00 to $40.00 and set an "equal weight" rating for the company in a report on Friday, September 13th. Roth Mkm reiterated a "neutral" rating and set a $40.00 price target on shares of Advance Auto Parts in a report on Wednesday, October 16th. Finally, BMO Capital Markets started coverage on Advance Auto Parts in a research note on Friday, December 13th. They issued a "market perform" rating and a $45.00 price objective for the company. One analyst has rated the stock with a sell rating, fifteen have given a hold rating and one has issued a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $48.40.

Advance Auto Parts Price Performance

The company's 50-day simple moving average is $42.08 and its 200 day simple moving average is $48.00. The company has a quick ratio of 0.62, a current ratio of 1.34 and a debt-to-equity ratio of 0.69. The stock has a market capitalization of $2.77 billion, a price-to-earnings ratio of 63.48 and a beta of 1.16.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its quarterly earnings data on Thursday, November 14th. The company reported ($0.04) EPS for the quarter, missing analysts' consensus estimates of $0.49 by ($0.53). Advance Auto Parts had a net margin of 0.41% and a return on equity of 1.82%. The company had revenue of $2.15 billion for the quarter, compared to analyst estimates of $2.62 billion. During the same period in the prior year, the company posted ($0.82) EPS. The business's revenue was down 3.2% on a year-over-year basis. Equities research analysts forecast that Advance Auto Parts, Inc. will post -0.54 EPS for the current year.

Advance Auto Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 24th. Stockholders of record on Friday, January 10th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.16%. The ex-dividend date is Friday, January 10th. Advance Auto Parts's payout ratio is 136.99%.

Insider Activity at Advance Auto Parts

In related news, EVP Tammy M. Finley sold 1,276 shares of the stock in a transaction that occurred on Thursday, December 5th. The stock was sold at an average price of $44.06, for a total transaction of $56,220.56. Following the completion of the sale, the executive vice president now owns 24,266 shares in the company, valued at $1,069,159.96. This represents a 5.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.35% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advance Auto Parts

Several hedge funds and other institutional investors have recently modified their holdings of AAP. Pzena Investment Management LLC increased its stake in Advance Auto Parts by 140.3% during the third quarter. Pzena Investment Management LLC now owns 2,908,658 shares of the company's stock valued at $113,409,000 after acquiring an additional 1,698,155 shares during the period. Dorsal Capital Management LP increased its position in shares of Advance Auto Parts by 159.7% during the second quarter. Dorsal Capital Management LP now owns 1,250,000 shares of the company's stock valued at $79,162,000 after purchasing an additional 768,664 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Advance Auto Parts by 76.2% in the second quarter. Dimensional Fund Advisors LP now owns 1,266,362 shares of the company's stock valued at $80,197,000 after purchasing an additional 547,696 shares in the last quarter. International Assets Investment Management LLC bought a new position in Advance Auto Parts in the third quarter worth $17,477,000. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Advance Auto Parts during the third quarter worth $14,684,000. Institutional investors and hedge funds own 88.75% of the company's stock.

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.