Advance Auto Parts (NYSE:AAP) Shares Gap Up - Here's Why

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $39.47, but opened at $40.40. Advance Auto Parts shares last traded at $40.60, with a volume of 510,017 shares.

Analysts Set New Price Targets

Several brokerages have commented on AAP. Truist Financial dropped their price target on shares of Advance Auto Parts from $63.00 to $46.00 and set a "hold" rating on the stock in a research report on Friday, August 23rd. TD Cowen dropped their price target on shares of Advance Auto Parts from $65.00 to $55.00 and set a "hold" rating on the stock in a research note on Friday, August 23rd. Evercore ISI reduced their price target on Advance Auto Parts from $64.00 to $60.00 and set an "in-line" rating for the company in a research report on Friday, August 23rd. Mizuho reissued a "neutral" rating and set a $38.00 target price (down previously from $45.00) on shares of Advance Auto Parts in a research report on Thursday, September 12th. Finally, Wedbush upgraded Advance Auto Parts from a "neutral" rating to an "outperform" rating and set a $55.00 price target for the company in a report on Tuesday. One investment analyst has rated the stock with a sell rating, thirteen have given a hold rating and one has given a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $56.54.

Advance Auto Parts Stock Performance

The company has a debt-to-equity ratio of 0.69, a current ratio of 1.23 and a quick ratio of 0.30. The firm has a market cap of $2.35 billion, a P/E ratio of 57.20, a PEG ratio of 1.25 and a beta of 1.16. The stock's 50 day moving average is $46.04 and its two-hundred day moving average is $60.64.

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

Advance Auto Parts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 25th. Stockholders of record on Friday, October 11th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 2.53%. The ex-dividend date is Friday, October 11th. Advance Auto Parts's payout ratio is 144.93%.

Hedge Funds Weigh In On Advance Auto Parts

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BW Gestao de Investimentos Ltda. acquired a new stake in Advance Auto Parts in the 2nd quarter valued at about $7,916,000. Renaissance Technologies LLC increased its holdings in shares of Advance Auto Parts by 26.9% in the second quarter. Renaissance Technologies LLC now owns 185,450 shares of the company's stock valued at $11,745,000 after purchasing an additional 39,300 shares in the last quarter. AQR Capital Management LLC raised its position in Advance Auto Parts by 31.0% in the 2nd quarter. AQR Capital Management LLC now owns 233,521 shares of the company's stock worth $14,740,000 after purchasing an additional 55,226 shares during the last quarter. Private Advisor Group LLC acquired a new position in Advance Auto Parts during the 1st quarter worth $1,172,000. Finally, State Board of Administration of Florida Retirement System boosted its position in Advance Auto Parts by 24.4% in the 1st quarter. State Board of Administration of Florida Retirement System now owns 77,031 shares of the company's stock valued at $6,555,000 after buying an additional 15,093 shares during the last quarter. 88.75% of the stock is currently owned by institutional investors and hedge funds.

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.