DA Davidson Cuts Advance Auto Parts (NYSE:AAP) Price Target to $48.00

Advance Auto Parts (NYSE:AAP) had its price target reduced by DA Davidson from $58.00 to $48.00 in a report issued on Friday, MarketBeat reports. They currently have a neutral rating on the stock.

Other equities research analysts have also recently issued reports about the company. Truist Financial set a $43.00 price objective on Advance Auto Parts and gave the company a “hold” rating in a research note on Thursday. Citigroup cut 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. Morgan Stanley lifted their target price on shares of Advance Auto Parts from $60.00 to $65.00 and gave the stock an “equal weight” rating in a research note on Friday, May 22nd. BMO Capital Markets boosted their price target 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. Finally, Weiss Ratings upgraded shares of Advance Auto Parts from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, May 29th. Two equities research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $50.80.

Advance Auto Parts Price Performance

Shares of NYSE AAP opened at $42.85 on Friday. The firm has a market cap of $2.59 billion, a price-to-earnings ratio of 31.28, a price-to-earnings-growth ratio of 0.69 and a beta of 1.03. The stock has a fifty day simple moving average of $56.58 and a two-hundred day simple moving average of $55.39. The company has a current ratio of 1.75, a quick ratio of 0.85 and a debt-to-equity ratio of 1.50. Advance Auto Parts has a 1-year low of $37.89 and a 1-year high of $65.21.

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

Advance Auto Parts Dividend Announcement

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

Institutional Trading of Advance Auto Parts

A number of hedge funds and other institutional investors have recently bought and sold shares of AAP. Studio Investment Management LLC bought a new position in Advance Auto Parts in the 2nd quarter valued at $285,000. Nykredit A S bought a new stake in Advance Auto Parts during the second quarter valued at $155,000. Maple Rock Capital Partners Inc. boosted its stake in Advance Auto Parts by 86.5% during the second quarter. Maple Rock Capital Partners Inc. now owns 2,421,040 shares of the company’s stock valued at $150,637,000 after buying an additional 1,122,900 shares during the period. Quantitative Investment Management LLC grew its position in Advance Auto Parts by 16.6% during the second quarter. Quantitative Investment Management LLC now owns 13,300 shares of the company’s stock worth $827,000 after buying an additional 1,891 shares in the last quarter. Finally, Two Sigma Securities LLC purchased a new position in Advance Auto Parts during the second quarter worth about $567,000. Institutional investors own 88.70% of the company’s stock.

Trending Headlines about 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

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.