Brokerages Set Advance Auto Parts, Inc. (NYSE:AAP) PT at $58.91

Shares of Advance Auto Parts, Inc. (NYSE:AAP) have earned a consensus recommendation of “Hold” from the twenty-two research firms that are presently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell rating, nineteen have issued a hold rating and two have issued a buy rating on the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $50.7953.

Several brokerages have recently issued reports on AAP. Weiss Ratings raised shares of Advance Auto Parts from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 29th. BMO Capital Markets reaffirmed a “market perform” rating on shares of Advance Auto Parts in a research report on Friday. Truist Financial set a $43.00 target price on shares of Advance Auto Parts and gave the stock a “hold” rating in a research note on Thursday. Guggenheim reiterated a “neutral” rating on shares of Advance Auto Parts in a report on Friday. Finally, Wells Fargo & Company lowered their target price on Advance Auto Parts from $60.00 to $50.00 and set an “equal weight” rating for the company in a report on Friday.

Advance Auto Parts Price Performance

Shares of AAP opened at $42.85 on Wednesday. The stock has a 50 day simple moving average of $56.58 and a 200 day simple moving average of $55.39. Advance Auto Parts has a 52-week low of $37.89 and a 52-week high of $65.21. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.85 and a current ratio of 1.75. The firm has a market capitalization of $2.59 billion, a PE ratio of 31.28, a P/E/G ratio of 0.69 and a beta of 1.03.

Advance Auto Parts (NYSE:AAP) last announced its earnings results on Thursday, August 20th. The company reported $1.03 EPS for the quarter, topping the consensus estimate of $0.81 by $0.22. Advance Auto Parts had a net margin of 0.97% and a return on equity of 9.84%. The firm had revenue of $2 billion for the quarter, compared to the consensus estimate of $2.04 billion. During the same period last year, the company posted $0.69 EPS. The business’s quarterly revenue was down .5% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. Sell-side analysts predict that Advance Auto Parts will post 2.97 EPS for the current fiscal year.

Advance Auto Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, October 9th. Advance Auto Parts’s dividend payout ratio is currently 72.99%.

Institutional Investors Weigh In On Advance Auto Parts

A number of hedge funds and other institutional investors have recently bought and sold shares of AAP. Allworth Financial LP acquired a new position in Advance Auto Parts during the 2nd quarter worth approximately $25,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Advance Auto Parts in the third quarter worth $31,000. State of Wyoming bought a new stake in shares of Advance Auto Parts in the second quarter worth $34,000. AlphaCore Capital LLC boosted its holdings in Advance Auto Parts by 53.6% during the fourth quarter. AlphaCore Capital LLC now owns 883 shares of the company’s stock worth $35,000 after purchasing an additional 308 shares during the last quarter. Finally, Hantz Financial Services Inc. boosted its holdings in Advance Auto Parts by 184.5% during the fourth quarter. Hantz Financial Services Inc. now owns 919 shares of the company’s stock worth $36,000 after purchasing an additional 596 shares during the last quarter. Institutional investors and hedge funds own 88.70% of the company’s stock.

Key Stories Impacting Advance Auto Parts

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: Adjusted earnings beat expectations. Advance Auto Parts reported second-quarter adjusted EPS of $1.03, above the $0.81 consensus estimate and up from $0.69 a year earlier. The company also raised its FY2026 adjusted EPS guidance to $2.60–$3.30, while maintaining its sales outlook. Advance Auto Parts Analysts Cut Their Forecasts After Q2 Results
• Positive Sentiment: Margins and balance-sheet metrics improved. A $26 million tariff refund helped support quarterly margins, while gross margin expanded to 46.2% from 43.5% a year earlier. Advance also reduced net leverage to 2.1x from 2.4x and repaid approximately $30 million of debt. Advance Auto Parts Rebounds After Tariff Refund Boosts Q2 Margins
• Neutral Sentiment: Analyst targets remain mixed. JPMorgan lowered its target to $55, Morgan Stanley and RBC each moved to $52, and Citigroup cut its target to $45; all maintained neutral or equivalent ratings. These targets imply upside from recent levels, but Goldman Sachs reduced its target to $40 and assigned a Sell rating. Benzinga analyst updates
• Neutral Sentiment: The dividend provides shareholder support. Advance Auto Parts declared a quarterly dividend of $0.25 per share, with payment scheduled for October 23 to shareholders of record on October 9. The dividend yield is approximately 2.4%.
• Negative Sentiment: Sales momentum remains the main concern. Second-quarter revenue of approximately $2.0 billion missed estimates near $2.04 billion, while comparable-store sales declined 0.5%. Weak demand from cost-conscious, lower-income do-it-yourself customers and a volatile spending environment raised concerns about the pace of sales acceleration and required reinvestment. Advance Auto Parts Posts Disappointing Q2 Comparable Sales
• Negative Sentiment: Broad target reductions underscore execution risk. Goldman Sachs’s Sell rating and Bank of America’s reiterated Sell/Underperform view highlight concerns over weak DIY demand and the company’s ability to execute its turnaround, even after the earnings beat. Bank of America Reiterates Sell Rating

Advance Auto Parts Company Profile

Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.