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

Advance Auto Parts, Inc. (NYSE:AAP) was the recipient of unusually large options trading on Monday. Traders acquired 25,996 call options on the company. This is an increase of approximately 255% compared to the average daily volume of 7,330 call options.

Analysts Set New Price Targets

AAP has been the topic of several recent analyst reports. Deutsche Bank Aktiengesellschaft raised Advance Auto Parts to a “buy” rating in a research report on Friday, May 22nd. TD Cowen reissued a “hold” rating on shares of Advance Auto Parts in a report on Friday, May 22nd. The Goldman Sachs Group boosted their price target on Advance Auto Parts from $49.00 to $54.00 and gave the stock a “sell” rating in a research note on Friday, May 22nd. Truist Financial upped their price objective on shares of Advance Auto Parts from $55.00 to $62.00 and gave the company a “hold” rating in a report on Thursday, May 21st. Finally, BMO Capital Markets increased their price objective on shares of Advance Auto Parts from $60.00 to $65.00 and gave the company a “market perform” rating in a research report on Friday, May 22nd. Two research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $58.66.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of AAP. Caitong International Asset Management Co. Ltd purchased a new stake in Advance Auto Parts in the 3rd quarter worth approximately $31,000. AlphaCore Capital LLC increased its holdings in shares of Advance Auto Parts by 53.6% during the 4th quarter. AlphaCore Capital LLC now owns 883 shares of the company’s stock valued at $35,000 after purchasing an additional 308 shares in the last quarter. Hantz Financial Services Inc. lifted its stake in shares of 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 purchasing an additional 596 shares during the period. Smartleaf Asset Management LLC lifted its stake in shares of Advance Auto Parts by 290.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock valued at $43,000 after purchasing an additional 688 shares during the period. Finally, Leonteq Securities AG purchased a new stake in Advance Auto Parts during the fourth quarter worth $55,000. 88.70% of the stock is currently owned by hedge funds and other institutional investors.

Advance Auto Parts Trading Up 0.1%

NYSE AAP opened at $55.39 on Wednesday. The company has a market capitalization of $3.34 billion, a PE ratio of 76.93, a P/E/G ratio of 0.91 and a beta of 1.03. The company has a fifty day moving average of $57.15 and a 200 day moving average of $53.11. Advance Auto Parts has a 1 year low of $37.89 and a 1 year high of $70.00. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.85.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings results on Thursday, May 21st. The company reported $0.77 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.38. The company had revenue of $2.61 billion for the quarter, compared to the consensus estimate of $2.05 billion. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.The firm’s revenue for the quarter was up 1.2% compared to the same quarter last year. During the same period last year, the firm earned $0.40 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. Research analysts forecast that Advance Auto Parts will post 2.94 earnings per share for the current year.

Advance Auto Parts Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Friday, July 10th. Advance Auto Parts’s dividend payout ratio (DPR) is 138.89%.

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.