Advance Auto Parts ( NYSE:AAP ) narrows the stock gap on disappointing earnings

Advance Auto Parts, Inc. (NYSE:AAP – Get Your Free Report ) fell before the market opened on Thursday following a disappointing earnings announcement. The stock had previously closed at $61.92 but opened at $48.40. Shares of Advance Auto Parts last traded at $50.69, with a volume of 2,005,757 shares changing hands.

The company reported $0.75 earnings per share for the quarter, missing the consensus estimate of $0.97 by ($0.22). The firm had revenue of $2.68 billion during the quarter, compared to analyst estimates of $2.67 billion. Advance Auto Parts had a net margin of 0.37% and a return on equity of 1.59%. Advance Auto Parts revenue fell 0.1% year over year. In the same quarter last year, the company earned $1.43 per share.

Advance Auto Parts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 25th. Stockholders of record on Friday, October 11th will be given a $0.25 dividend. The ex-dividend date of this dividend is Friday, October 11. This represents an annualized dividend of $1.00 and a yield of 2.04%. Advance Auto Parts’s dividend payout ratio (DPR) is 144.93%.

Analysts set new price targets

Several brokerage houses had an influence on AAP. Evercore ISI cut their price target on shares of Advance Auto Parts from $64.00 to $60.00 and set an “in-line” rating for the company in a research note on Friday. Wedbush restated a “neutral” rating and issued a $55.00 target price (down previously from $65.00) on shares of Advance Auto Parts in a report on Friday. Bank of America upped their target price on shares of Advance Auto Parts from $51.00 to $55.00 and gave the stock an “underperform” rating in a report on Thursday, May 30th. StockNews.com raised shares of Advance Auto Parts from a “sell” rating to a “hold” rating in a report on Thursday, May 30th. Finally, Mizuho cut their price target on shares of Advance Auto Parts from $78.00 to $64.00 and set a “neutral” rating for the company in a report on Monday, June 10th. One research analyst has rated the stock with a sell rating and fifteen have issued a hold rating to the stock. According to MarketBeat.com, Advance Auto Parts has a consensus rating of “Hold” and an average price target of $60.86.

Get the latest stock report on AAP

Institutional inputs and outputs

Several institutional investors have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD boosted its holdings in shares of Advance Auto Parts by 1.0% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 3,998,910 shares of the company’s stock worth $340,268,000 after purchasing an additional 40,669 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Advance Auto Parts by 3.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,577,372 shares of the company’s stock valued at $96,267,000 after purchasing an additional 46,226 shares during the last quarter. Capital World Investors boosted its holdings in Advance Auto Parts by 67.0% in the first quarter. Capital World Investors now owns 1,533,933 shares of the company’s stock valued at $130,522,000 after purchasing an additional 615,674 shares during the last quarter. Third Point LLC acquired a new position in Advance Auto Parts during the first quarter valued at $127,234,000. Finally, Dimensional Fund Advisors LP boosted its holdings in Advance Auto Parts by 76.2% in the second quarter. Dimensional Fund Advisors LP now owns 1,266,362 shares of the company’s stock valued at $80,197,000 after purchasing an additional 547,696 shares during the last quarter. Hedge funds and other institutional investors own 88.75% of the company’s shares.

Advance auto parts inventory down 3.8%

The company has a debt-to-equity ratio of 0.70, a current ratio of 1.22, and a quick ratio of 0.29. The company has a fifty day simple moving average of $60.93 and a two hundred day simple moving average of $68.59. The company has a market cap of $2.93 billion, a PE ratio of 71.22, a PEG ratio of 1.20 and a beta of 1.20.

About Advance Auto Parts

(Get a free report)

Advance Auto Parts, Inc offers auto parts, accessories, batteries and maintenance items for 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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