Advance Auto Parts (NYSE:AAP) Shares Down 1.4% on Disappointing Earnings

Advance Auto Parts, Inc. (NYSE:AAP)’s share price traded down 1.4% on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $50.11 and last traded at $50.37. 325,133 shares changed hands during trading, a decline of 81% from the average session volume of 1,685,604 shares. The stock had previously closed at $51.10.

The company reported $0.75 EPS for the quarter, missing analysts’ consensus estimates of $0.97 by ($0.22). The business had revenue of $2.68 billion during the quarter, compared to analyst estimates of $2.67 billion. Advance Auto Parts had a net margin of 0.37% and a return on equity of 1.59%. The company’s revenue was down .1% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.43 earnings per share.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Bank of America lifted their price objective on Advance Auto Parts from $51.00 to $55.00 and gave the company an “underperform” rating in a research note on Thursday, May 30th. UBS Group lifted their target price on Advance Auto Parts from $68.00 to $72.00 and gave the company a “neutral” rating in a research report on Tuesday, May 28th. Evercore ISI reduced their price target on shares of Advance Auto Parts from $64.00 to $60.00 and set an “in-line” rating on the stock in a research report on Friday. Truist Financial dropped their price objective on shares of Advance Auto Parts from $70.00 to $63.00 and set a “hold” rating for the company in a report on Thursday, May 30th. Finally, TD Cowen reduced 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. One equities research analyst has rated the stock with a sell rating and fifteen have given a hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $62.79.

Hedge Funds Weigh In On Advance Auto Parts

Hedge funds have recently added to or reduced their stakes in the stock. International Assets Investment Management LLC purchased a new position in shares of Advance Auto Parts during the fourth quarter worth about $3,363,000. Zurcher Kantonalbank Zurich Cantonalbank increased its position in Advance Auto Parts by 35.1% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 12,917 shares of the company’s stock worth $788,000 after buying an additional 3,359 shares during the period. Handelsbanken Fonder AB lifted its stake in Advance Auto Parts by 28.8% in the fourth quarter. Handelsbanken Fonder AB now owns 10,300 shares of the company’s stock valued at $629,000 after buying an additional 2,300 shares during the last quarter. OLD National Bancorp IN acquired a new stake in shares of Advance Auto Parts in the fourth quarter valued at approximately $222,000. Finally, GAMMA Investing LLC purchased a new position in shares of Advance Auto Parts during the fourth quarter worth approximately $63,000. 88.75% of the stock is currently owned by hedge funds and other institutional investors.

Advance Auto Parts Stock Down 1.3 %

The firm has a market capitalization of $3.01 billion, a price-to-earnings ratio of 73.10, a PEG ratio of 1.20 and a beta of 1.20. The business’s fifty day moving average price is $61.21 and its 200 day moving average price is $68.70. The company has a current ratio of 1.22, a quick ratio of 0.29 and a debt-to-equity ratio of 0.70.

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.