The Goldman Sachs Group Cuts Advance Auto Parts (NYSE:AAP) Price Target to $40.00

Advance Auto Parts (NYSE:AAP) had its price target trimmed by The Goldman Sachs Group from $54.00 to $40.00 in a report released on Friday morning,Benzinga reports. The firm currently has a sell rating on the stock.

Several other equities research analysts also recently commented on AAP. Mizuho boosted their target price on shares of Advance Auto Parts from $54.00 to $58.00 and gave the company a “neutral” rating in a research note on Tuesday, May 26th. BMO Capital Markets reiterated a “market perform” rating on shares of Advance Auto Parts in a research report on Friday. Citigroup dropped their target price on shares of Advance Auto Parts from $60.00 to $57.00 and set a “neutral” rating for the company in a research report on Thursday, August 13th. DA Davidson cut their price target on shares of Advance Auto Parts from $58.00 to $48.00 and set a “neutral” rating for the company in a report on Friday. Finally, Wells Fargo & Company reduced their price target on shares of Advance Auto Parts from $60.00 to $50.00 and set an “equal weight” rating on the stock in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $50.80.

Advance Auto Parts Price Performance

Advance Auto Parts stock opened at $42.85 on Friday. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.75 and a quick ratio of 0.85. The company has a market capitalization of $2.59 billion, a PE ratio of 31.28, a price-to-earnings-growth ratio of 0.69 and a beta of 1.03. Advance Auto Parts has a one year low of $37.89 and a one year high of $65.21. The business has a 50 day simple moving average of $56.58 and a 200 day simple moving average of $55.39.

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

Advance Auto Parts Dividend Announcement

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

Hedge Funds Weigh In On Advance Auto Parts

A number of large investors have recently modified their holdings of the stock. Allworth Financial LP bought a new stake in shares of Advance Auto Parts during the second quarter valued at approximately $25,000. Caitong International Asset Management Co. Ltd bought a new position in Advance Auto Parts in the 3rd quarter worth approximately $31,000. State of Wyoming acquired a new position in Advance Auto Parts during the 2nd quarter worth $34,000. AlphaCore Capital LLC lifted its holdings in Advance Auto Parts by 53.6% during the 4th quarter. AlphaCore Capital LLC now owns 883 shares of the company’s stock worth $35,000 after buying an additional 308 shares in the last quarter. Finally, Hantz Financial Services Inc. boosted its position in Advance Auto Parts by 184.5% in the 4th quarter. Hantz Financial Services Inc. now owns 919 shares of the company’s stock valued at $36,000 after buying an additional 596 shares during the last quarter. 88.70% of the stock is currently owned by institutional investors and hedge funds.

Key Advance Auto Parts News

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

About Advance Auto Parts

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.