In a recent SEC filing, Fifth Third Bancorp revealed a significant decrease in its holdings in Advance Auto Parts, Inc. (NYSE:AAP) during the fourth quarter of last year. The bank cut its holdings by a staggering 41.3%, selling 9,871 shares to end up with 14,011 shares in total. As of the latest SEC filing, those shares were valued at $2,060,000.
Advance Auto Parts recently announced their quarterly earnings data as well; they reported earnings per share (EPS) of $2.88 for the quarter ending February 28th, exceeding analysts’ consensus estimates by $0.47 per share. While this is certainly impressive news for the company and their investors alike, it’s worth noting that Advance Auto Parts had an exceptional return on equity of 28.53% and a net margin of 4.50%. Revenue from the same period was up about 3 percent compared to last year’s figures; this amounted to $2.47 billion for the quarter versus analysts’ estimated $2.42 billion.
Advance Auto Parts operates across several segments including Advance Auto Parts/Carquest US., Carquest Canada, Worldpac and Independents as part of its business model which caters to both professional installers and do-it-yourself customers looking for automotive aftermarket products.
Founded back in 1929 by Arthur Taubman, Advance Auto Parts has grown into one of the key players in automotive parts supply and distribution industry today with its headquarters stationed in Raleigh, NC.
Industry insiders predict that over the course of this year we will see continued growth from Advance Auto Parts with projections showing that they will post up to $10.64 earnings per share throughout current financial year which is sure to keep both existing investors interested as well as those who may be considering investing in this sector.
Overall, these developments suggest that Advance Auto Parts is on course for continued and long-term success in the thriving automotive aftermarket. The company’s strong balance sheet, which includes notable returns on equity and healthy net margins, along with significant investments from other key players within this space, bodes well for its future growth prospects.
Hedge Funds and Institutional Investors Show Interest in Advance Auto Parts, Inc.
Advance Auto Parts, Inc., a global leader in the distribution of aftermarket automotive products for both professional installers and do-it-yourself customers, has caught the attention of several hedge funds and institutional investors. Xponance Inc., Inlet Private Wealth LLC, Ceredex Value Advisors LLC and Silvant Capital Management LLC are among those who recently increased their holdings within the company. While other funds like DAVENPORT & Co LLC grew its position by 4.9% during the fourth quarter.
These investments come as Advance Auto Parts, Inc.* shares opened at $120.69 on Friday, with a market capitalization of $7.15 billion according to Bloomberg data. Recently declared quarterly dividends will be paid out on Friday, April 28th to investors of record on April 14th with sustainable annualized yields being reviewed positively by many analysts.
The company has managed to establish itself across North America through its subsidiary brands including Carquest U.S., Carquest Canada and Worldpac; while third party product promotions have allowed it to also work with several independent retailers.
Recently rated “hold” by Roth Capital and DA Davidson acquisitions reports noted that advance-price reductions may have influenced these ratings negatively but overall performance metrics indicate a strong “Neutral” rating target.
*Please verify all information prior to publication: this article was written on April 26th, 2021.