Tower Research Capital LLC TRC, a prominent institutional investor, recently increased its stake in shares of Advance Auto Parts, Inc. (NYSE:AAP) by an impressive 168.0% during the first quarter of this year. This information was disclosed in the company’s most recent Form 13F filing with the Securities and Exchange Commission. Tower Research Capital LLC TRC now owns 3,514 shares of Advance Auto Parts, representing an additional 2,203 shares acquired during the quarter. At the time of filing, these holdings were valued at $427,000.
In light of this development, several analysts have shared their perspectives on AAP shares. Wedbush reiterated a “neutral” rating for Advance Auto Parts and set a target price of $80.00 per share in a research note released on August 18th. Bank of America also chimed in, downgrading the company from a “buy” to a “neutral” rating and lowering their target price from $178.00 to $85.00 on June 1st. Wells Fargo & Company echoed this sentiment by decreasing their target price from $80.00 to $70.00 and assigning an “equal weight” rating to the company in early June as well.
Stephens maintained an “equal weight” rating for Advance Auto Parts and set a target price of $77.00 per share in their research note published on Tuesday. Raymond James took a different stance and downgraded the stock from a “strong-buy” rating to a “market perform” rating on June 1st.
Out of all these expert opinions, it is worth mentioning that one equities research analyst has given the stock a sell rating while nineteen analysts have assigned it a hold rating. On average, according to Bloomberg.com data, Advance Auto Parts currently holds an overall “Hold” rating with consensus expectations aiming for an average target price of $96.11.
As of the most recent update on August 23, 2023, AAP opened at $67.34 per share. The company boasts a current ratio of 1.24, reflecting its ability to meet short-term obligations, and has a quick ratio of 0.24. Its debt-to-equity ratio stands at 0.68, highlighting a moderate level of indebtedness. Over the past year, Advance Auto Parts has experienced a considerable price range, with a low of $63.56 and a high of $200.49.
With regards to market capitalization, the firm is currently valued at approximately $4.00 billion. Its price-to-earnings (PE) ratio stands at an attractive 10.01, implying that investors can obtain significant earnings for each dollar invested in the stock. Furthermore, its price/earnings-to-growth (PEG) ratio is estimated at 1.02, suggesting that its stock price is relatively in line with expected earnings growth over time.
Advance Auto Parts also possesses a beta value of 1.08, indicating strong positive correlation with market movements and somewhat higher volatility.
The company’s performance can be further analyzed by examining its moving averages over different time periods: it currently holds a 50-day moving average of $70.26 and a two-hundred day moving average of $103.26.
This comprehensive overview provides valuable insights into the recent developments surrounding Advance Auto Parts’ stock as well as analysts’ opinions on its future prospects in the market.
Advance Auto Parts, Inc.
Updated on: 03/03/2024
Debt to equity ratio: Buy
Price to earnings ratio: Strong Sell
Price to book ratio: Buy
4:00 AM (UTC)
Date:01 February, 2024
|Analyst / firm
The Surprising Investment Activity in Advance Auto Parts Raises Questions for Analysts
In an unexpected turn of events, several hedge funds and institutional investors have made significant changes to their positions in automotive retailer Advance Auto Parts (AAP) over the past year. Norges Bank, one of the world’s largest sovereign wealth funds, acquired a new stake worth $97,170,000 during the fourth quarter of 2022, surprising many industry experts.
The acquisition by Norges Bank was followed by another substantial investment from Alyeska Investment Group L.P., which bought shares worth approximately $86,585,000 during the same period. These moves sparked curiosity among market observers since Advance Auto Parts had been facing challenges related to its financial performance.
Adding to the intrigue surrounding AAP’s stock, Marshall Wace LLP significantly increased its position in the company by 378.8% during the fourth quarter. The investment firm now owns 480,397 shares valued at $70,633,000 after buying an additional 380,062 shares.
Another notable investor in AAP is Barclays PLC. It grew its position in Advance Auto Parts by a staggering 337.3% during the fourth quarter as well. Barclays now holds 339,699 shares with a valuation of $49,946,000 after purchasing an additional 262,025 shares.
Furthermore, Vanguard Group Inc., a prominent institutional investor that manages trillions of dollars in assets globally,opted to increase its investment in AAP by 3.9% during the first quarter. Vanguard currently possesses an impressive portfolio consisting of over six million shares valued at $1,442,611,000 after acquiring an additional 261,715 shares.
These moves have further solidified AAP’s position as a highly sought-after investment option for institutional investors and hedge funds alike. As of August 23rd this year concludes that these entities currently own around 91.32% of Advance Auto Parts’ outstanding stock.
While it remains unclear what led to these large-scale investments in the auto parts retailer, some financial experts speculate that they may have detected untapped potential in the company’s future performance. This notion is supported by recent insider buying activities.
Director Douglas A. Pertz notably acquired 4,575 shares of AAP stock on June 12th at an average price of $66.02 per share, totaling $302,041.50. Following this transaction, Pertz now owns a significant amount of AAP shares worth approximately $847,102.62.
Director Carla Jean Bailo also made a notable purchase on June 7th when she bought 500 shares of the company’s stock at an average price of $65.90 per share for a total transaction amount of $32,950.
These insider purchases indicate a level of confidence in the company’s long-term prospects and may have influenced institutional investors’ decision-making process.
Notwithstanding these intriguing developments in AAP’s ownership structure, various market analysts have weighed in on the stock with mixed reviews so far this year.
Wedbush maintained a “neutral” rating and set a target price of $80.00 for Advance Auto Parts as of August 18th this year. In contrast,Bank of America decreased its rating from “buy” to “neutral” while lowering their target price from $178.00 to $85.00 on June 1st.
Similarly,Wells Fargo & Company reduced their target price from $80.00 to $70.00 and assigned an “equal weight” rating for the company on June 1st.&Other research firms such as Stephens reiterated their “equal weight” rating with a target price set at $77.00.
Conversely,Raymond James downgraded AAP from a “strong-buy” to a “market perform” rating on June 1st.According Bloomberg.com,data indicates that Advance Auto Parts currently has an average rating classified as “Hold,” with analysts having established a consensus target price of $96.11.
In terms of financial performance, Advance Auto Parts reported its quarterly earnings data on May 31st this year. The company recorded an EPS (Earnings per Share) of $0.72, significantly missing analysts’ consensus estimates by ($1.88).
Additionally, AAP generated revenue totaling $3.42 billion for the quarter, which fell just short of analysts’ expectations set at $3.43 billion. Moreover, the company’s net margin stood at 3.61%, with a return on equity of 22.67%.
Due to these financial results, industry pundits eagerly anticipate AAP’s future quarterly earnings release to determine if the recent investments will prove fruitful for institutional investors and hedge funds.
An additional noteworthy development for Advance Auto Parts comes in the form of a quarterly dividend that was recently announced and subsequently paid out on July 28th this year.
Shareholders in possession of stock as at July 14th received a dividend payout of $0.25 per share.However,the ex-dividend date fell on July 13th.Effectively,this indicates an annualized dividend payout ratio equal to 14.86% and an impressive yield standing at 1.49%.
With such perplexing movements among institutional investors and hedge