Research Analysts’ Weekly Ratings Updates for Advance Auto Parts (AAP)

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Advance Auto Parts (NYSE: AAP) recently received a number of ratings updates from brokerages and research firms:

  • 8/16/2018 – Advance Auto Parts had its price target raised by analysts at Royal Bank of Canada to $170.00. They now have an “outperform” rating on the stock.
  • 8/16/2018 – Advance Auto Parts had its “hold” rating reaffirmed by analysts at Stephens. They now have a $155.00 price target on the stock.
  • 8/16/2018 – Advance Auto Parts had its “buy” rating reaffirmed by analysts at Guggenheim. They now have a $174.00 price target on the stock.
  • 8/15/2018 – Advance Auto Parts had its price target raised by analysts at Morgan Stanley from $140.00 to $170.00. They now have an “overweight” rating on the stock.
  • 8/15/2018 – Advance Auto Parts had its price target raised by analysts at Deutsche Bank AG from $155.00 to $171.00. They now have a “buy” rating on the stock.
  • 8/15/2018 – Advance Auto Parts was given a new $175.00 price target on by analysts at Wedbush. They now have a “buy” rating on the stock.
  • 8/14/2018 – Advance Auto Parts was upgraded by analysts at Citigroup Inc from a “sell” rating to a “neutral” rating. They now have a $85.00 price target on the stock.
  • 8/14/2018 – Advance Auto Parts had its “hold” rating reaffirmed by analysts at Wells Fargo & Co. They now have a $165.00 price target on the stock. They wrote, “We view today’s results as obviously encouraging and reflecting both a more favorable industry backdrop as well as AAP’s sales/turnaround initiatives. With investor sentiment warming up to AAP (and the industry) following 3 years of sales declines, we believe momentum is poised to continue with easing y/y compares in 2H, a new buyback in place, and a revised/raised profit forecast that still appears manageable. That said, we believe considerable work remains on a long-term turnaround, as Q2 comps lagged ORLY by 180bps and margins remain a sticking point with AAP’s EBIT gap (albeit improving) 1,100bps below peers (with ~700bps addressable, per AAP). We are raising our PT to $165 (21x our CY19E EPS) reflecting these improvements, yet view risk/reward more balanced over the next 12-18 months, particularly relative to peers owing to AAP’s elevated valuation and heightened execution risk.””
  • 8/9/2018 – Advance Auto Parts had its price target lowered by analysts at Wedbush from $160.00 to $130.00. They now have an “outperform” rating on the stock.
  • 8/9/2018 – Advance Auto Parts was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $164.00 price target on the stock. According to Zacks, “Advance Auto Parts is focusing to expand its footprint by opening stores, widening online presence and collaborations. Further, to meet the evolving need of the customers, Advance Auto Parts is streamlining its supply chain and is opting for store transformation and inventory positioning. Also, its past investments and reduction in material costs are driving the company’s gross margin. It has also outlined a five-year strategy to remove unnecessary costs up to $750 million within a span of four to five years. In the last three months, shares of the company have outperformed the industry it belongs to. However, huge capital expenditure and price competition are concerns for Advance Auto Parts.”
  • 8/6/2018 – Advance Auto Parts was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Advance Auto Parts is focusing to expand its footprint by opening stores, widening online presence and collaborations. Further, to meet the evolving need of the customers, Advance Auto Parts is streamlining its supply chain and is opting for store transformation and inventory positioning. Also, its past investments and reduction in material costs are driving the company’s gross margin. It has also outlined a five-year strategy to remove unnecessary costs up to $750 million within a span of four to five years. In the last three months, shares of the company have outperformed the industry it belongs to. However, huge capital expenditure and price competition are concerns before the company. Also, Advance Auto Parts' business is heavily dependent on seasonality and weather conditions.”
  • 7/24/2018 – Advance Auto Parts was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $162.00 price target on the stock. According to Zacks, “Advance Auto Parts is focusing to expand its footprint by opening stores, widening online presence and collaborations. Further, to meet the evolving need of the customers, Advance Auto Parts is streamlining its supply chain and is opting for store transformation and inventory positioning. Also, its past investments and reduction in material costs are driving the company’s gross margin. It has also outlined a five-year strategy to remove unnecessary costs up to $750 million within a span of four to five years. In the last three months, shares of the company have outperformed the industry it belongs to.”
  • 7/13/2018 – Advance Auto Parts had its “hold” rating reaffirmed by analysts at Stephens. They now have a $130.00 price target on the stock.
  • 7/13/2018 – Advance Auto Parts was given a new $156.00 price target on by analysts at Guggenheim. They now have a “buy” rating on the stock.
  • 7/12/2018 – Advance Auto Parts had its price target raised by analysts at Royal Bank of Canada to $154.00. They now have an “outperform” rating on the stock.

AAP opened at $169.48 on Wednesday. The stock has a market cap of $12.15 billion, a P/E ratio of 31.56, a price-to-earnings-growth ratio of 2.21 and a beta of 1.18. Advance Auto Parts, Inc. has a fifty-two week low of $78.81 and a fifty-two week high of $169.59. The company has a current ratio of 1.63, a quick ratio of 0.48 and a debt-to-equity ratio of 0.29.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings data on Tuesday, August 14th. The company reported $1.97 earnings per share for the quarter, topping the consensus estimate of $1.86 by $0.11. Advance Auto Parts had a net margin of 5.68% and a return on equity of 13.43%. The firm had revenue of $2.33 billion for the quarter, compared to analyst estimates of $2.26 billion. During the same quarter in the prior year, the business earned $1.48 earnings per share. Advance Auto Parts’s quarterly revenue was up 2.8% on a year-over-year basis. sell-side analysts predict that Advance Auto Parts, Inc. will post 6.92 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, October 5th. Shareholders of record on Friday, September 21st will be given a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 0.14%. The ex-dividend date of this dividend is Thursday, September 20th. Advance Auto Parts’s dividend payout ratio (DPR) is 4.47%.

In other news, Director Nigel Travis bought 1,250 shares of the firm’s stock in a transaction on Friday, August 17th. The stock was purchased at an average price of $159.70 per share, for a total transaction of $199,625.00. Following the transaction, the director now owns 1,250 shares in the company, valued at $199,625. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 4.50% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Piedmont Investment Advisors LLC bought a new position in Advance Auto Parts in the 2nd quarter worth about $116,000. Tower Research Capital LLC TRC bought a new position in Advance Auto Parts in the 2nd quarter worth about $117,000. Federated Investors Inc. PA bought a new position in Advance Auto Parts in the 2nd quarter worth about $124,000. Stratos Wealth Partners LTD. boosted its holdings in shares of Advance Auto Parts by 1,148.4% in the first quarter. Stratos Wealth Partners LTD. now owns 1,186 shares of the company’s stock valued at $141,000 after acquiring an additional 1,091 shares in the last quarter. Finally, First Mercantile Trust Co. bought a new position in shares of Advance Auto Parts in the second quarter valued at approximately $162,000.

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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