Investors Purchase High Volume of Call Options on Advance Auto Parts (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) saw some unusual options trading activity on Monday. Traders acquired 12,678 call options on the company. This is an increase of 2,056% compared to the typical volume of 588 call options.

AAP has been the subject of a number of analyst reports. Wells Fargo & Co reissued a “hold” rating and issued a $165.00 price objective on shares of Advance Auto Parts in a research report on Wednesday, January 8th. Raymond James assumed coverage on shares of Advance Auto Parts in a report on Monday, October 7th. They issued a “market perform” rating on the stock. Nomura reiterated a “hold” rating and issued a $160.00 target price (down previously from $162.00) on shares of Advance Auto Parts in a report on Wednesday, November 13th. Wedbush dropped their target price on shares of Advance Auto Parts to in a report on Monday. Finally, JPMorgan Chase & Co. downgraded shares of Advance Auto Parts from an “overweight” rating to a “neutral” rating and dropped their target price for the stock from $168.00 to $163.00 in a report on Monday. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and ten have given a buy rating to the company. The stock presently has a consensus rating of “Buy” and an average price target of $166.86.

Institutional investors have recently made changes to their positions in the business. Doyle Wealth Management purchased a new stake in shares of Advance Auto Parts in the second quarter worth $31,000. CSat Investment Advisory L.P. raised its holdings in shares of Advance Auto Parts by 66.9% during the second quarter. CSat Investment Advisory L.P. now owns 292 shares of the company’s stock valued at $45,000 after acquiring an additional 117 shares during the last quarter. Cullen Frost Bankers Inc. raised its holdings in shares of Advance Auto Parts by 3,687.5% during the third quarter. Cullen Frost Bankers Inc. now owns 303 shares of the company’s stock valued at $50,000 after acquiring an additional 295 shares during the last quarter. Citizens Financial Group Inc RI raised its holdings in shares of Advance Auto Parts by 38.9% during the third quarter. Citizens Financial Group Inc RI now owns 307 shares of the company’s stock valued at $51,000 after acquiring an additional 86 shares during the last quarter. Finally, Allred Capital Management LLC acquired a new position in shares of Advance Auto Parts during the fourth quarter valued at approximately $64,000.

AAP traded down $0.35 during trading on Tuesday, hitting $144.91. The stock had a trading volume of 13,138 shares, compared to its average volume of 711,395. The firm has a market cap of $10.32 billion, a PE ratio of 20.33, a P/E/G ratio of 1.52 and a beta of 0.84. Advance Auto Parts has a 12 month low of $130.09 and a 12 month high of $182.56. The company has a current ratio of 1.31, a quick ratio of 0.32 and a debt-to-equity ratio of 0.79. The company has a 50 day simple moving average of $156.25 and a 200-day simple moving average of $155.04.

Advance Auto Parts (NYSE:AAP) last posted its quarterly earnings results on Tuesday, November 12th. The company reported $2.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.05. The company had revenue of $2.31 billion for the quarter, compared to analyst estimates of $2.30 billion. Advance Auto Parts had a net margin of 4.58% and a return on equity of 15.61%. The business’s quarterly revenue was up 1.6% on a year-over-year basis. During the same period last year, the business posted $1.89 EPS. As a group, sell-side analysts anticipate that Advance Auto Parts will post 7.94 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 3rd. Shareholders of record on Friday, December 20th were paid a dividend of $0.06 per share. The ex-dividend date was Thursday, December 19th. This represents a $0.24 dividend on an annualized basis and a yield of 0.17%. Advance Auto Parts’s payout ratio is 3.37%.

About Advance Auto Parts

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.

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