Advance Auto Parts (AAP) Hits New 52-Week High Following Insider Buying Activity

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Advance Auto Parts, Inc. (NYSE:AAP) hit a new 52-week high on Monday following insider buying activity. The stock traded as high as $161.14 and last traded at $160.85, with a volume of 30774 shares trading hands. The stock had previously closed at $160.00.

Specifically, Director Nigel Travis bought 1,250 shares of the business’s stock in a transaction dated Friday, August 17th. The shares were acquired at an average price of $159.70 per share, with a total value of $199,625.00. Following the purchase, the director now owns 1,250 shares in the company, valued at approximately $199,625. The purchase was disclosed in a document filed with the SEC, which is available through this link. Company insiders own 4.50% of the company’s stock.

A number of equities analysts have recently commented on the stock. Guggenheim reissued a “buy” rating and issued a $174.00 target price on shares of Advance Auto Parts in a research note on Thursday. Stephens reissued a “hold” rating and issued a $155.00 target price on shares of Advance Auto Parts in a research note on Thursday. Deutsche Bank raised their target price on shares of Advance Auto Parts from $155.00 to $171.00 and gave the company a “buy” rating in a research note on Wednesday, August 15th. Morgan Stanley raised their target price on shares of Advance Auto Parts from $140.00 to $170.00 and gave the company an “overweight” rating in a research note on Wednesday, August 15th. Finally, Royal Bank of Canada lifted their price target on shares of Advance Auto Parts to $170.00 and gave the stock an “outperform” rating in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and thirteen have issued a buy rating to the company. The stock presently has an average rating of “Hold” and an average target price of $143.11.

The company has a market capitalization of $10.83 billion, a PE ratio of 29.89, a price-to-earnings-growth ratio of 1.96 and a beta of 1.12. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.40 and a current ratio of 1.61.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings results on Tuesday, August 14th. The company reported $1.97 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.86 by $0.11. Advance Auto Parts had a net margin of 5.39% and a return on equity of 13.09%. The firm had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.26 billion. During the same quarter in the previous year, the firm posted $1.48 EPS. The firm’s quarterly revenue was up 2.8% on a year-over-year basis. analysts predict that Advance Auto Parts, Inc. will post 6.8 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 5th. Shareholders of record on Friday, September 21st will be issued a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a yield of 0.15%. The ex-dividend date of this dividend is Thursday, September 20th. Advance Auto Parts’s dividend payout ratio is currently 4.47%.

Advance Auto Parts declared that its Board of Directors has authorized a stock buyback program on Tuesday, August 14th that authorizes the company to buyback $600.00 million in shares. This buyback authorization authorizes the company to purchase up to 5.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Hedge funds have recently made changes to their positions in the business. Piedmont Investment Advisors LLC acquired a new position in Advance Auto Parts during the 2nd quarter worth $116,000. Tower Research Capital LLC TRC acquired a new position in Advance Auto Parts during the 2nd quarter worth $117,000. Federated Investors Inc. PA acquired a new position in Advance Auto Parts during the 2nd quarter worth $124,000. Stratos Wealth Partners LTD. grew its holdings in Advance Auto Parts by 1,148.4% during the 1st quarter. Stratos Wealth Partners LTD. now owns 1,186 shares of the company’s stock worth $141,000 after acquiring an additional 1,091 shares in the last quarter. Finally, First Mercantile Trust Co. acquired a new position in Advance Auto Parts during the 2nd quarter worth $162,000.

Advance Auto Parts Company Profile (NYSE:AAP)

Advance Auto Parts, Inc provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. It 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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