Short Interest in Advance Auto Parts, Inc. (NYSE:AAP) Drops By 19.7%

Advance Auto Parts, Inc. (NYSE:AAP) was the recipient of a large decline in short interest in November. As of November 30th, there was short interest totalling 8,590,000 shares, a decline of 19.7% from the November 15th total of 10,700,000 shares. Currently, 14.5% of the company’s stock are sold short. Based on an average daily trading volume, of 2,830,000 shares, the days-to-cover ratio is presently 3.0 days.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on AAP shares. Evercore ISI raised their price objective on shares of Advance Auto Parts from $45.00 to $60.00 and gave the stock a “hold” rating in a report on Wednesday, November 20th. Truist Financial decreased their price target on Advance Auto Parts from $41.00 to $39.00 and set a “hold” rating for the company in a research note on Friday, November 15th. Roth Mkm restated a “neutral” rating and set a $40.00 price objective on shares of Advance Auto Parts in a research note on Wednesday, October 16th. UBS Group increased their target price on Advance Auto Parts from $42.00 to $44.00 and gave the stock a “neutral” rating in a report on Friday, November 15th. Finally, Roth Capital upgraded Advance Auto Parts to a “hold” rating in a report on Tuesday, October 15th. One investment analyst has rated the stock with a sell rating, fifteen have given a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $48.40.

Insiders Place Their Bets

In other news, EVP Tammy M. Finley sold 1,276 shares of the firm’s stock in a transaction that occurred on Thursday, December 5th. The shares were sold at an average price of $44.06, for a total transaction of $56,220.56. Following the completion of the sale, the executive vice president now owns 24,266 shares of the company’s stock, valued at approximately $1,069,159.96. This trade represents a 5.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.35% of the stock is currently owned by company insiders.

Institutional Trading of Advance Auto Parts

Hedge funds have recently added to or reduced their stakes in the business. Pzena Investment Management LLC lifted its stake in shares of Advance Auto Parts by 140.3% in the 3rd quarter. Pzena Investment Management LLC now owns 2,908,658 shares of the company’s stock worth $113,409,000 after acquiring an additional 1,698,155 shares during the period. Dorsal Capital Management LP raised its holdings in Advance Auto Parts by 159.7% during the second quarter. Dorsal Capital Management LP now owns 1,250,000 shares of the company’s stock worth $79,162,000 after purchasing an additional 768,664 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Advance Auto Parts by 76.2% during the second quarter. Dimensional Fund Advisors LP now owns 1,266,362 shares of the company’s stock worth $80,197,000 after purchasing an additional 547,696 shares in the last quarter. International Assets Investment Management LLC bought a new position in Advance Auto Parts during the 3rd quarter valued at $17,477,000. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Advance Auto Parts during the 3rd quarter valued at $14,684,000. Institutional investors own 88.75% of the company’s stock.

Advance Auto Parts Stock Performance

Shares of AAP traded down $0.18 during midday trading on Friday, hitting $43.86. 1,420,341 shares of the stock traded hands, compared to its average volume of 2,081,879. The business’s 50 day moving average price is $40.24 and its two-hundred day moving average price is $50.00. The firm has a market capitalization of $2.62 billion, a PE ratio of 60.08 and a beta of 1.21. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.62 and a current ratio of 1.34. Advance Auto Parts has a 1-year low of $35.59 and a 1-year high of $88.56.

Advance Auto Parts (NYSE:AAP) last posted its earnings results on Thursday, November 14th. The company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.53). Advance Auto Parts had a net margin of 0.41% and a return on equity of 1.82%. The firm had revenue of $2.15 billion for the quarter, compared to analyst estimates of $2.62 billion. During the same period in the previous year, the firm earned ($0.82) earnings per share. The company’s revenue for the quarter was down 3.2% on a year-over-year basis. Equities research analysts predict that Advance Auto Parts will post -0.54 EPS for the current fiscal year.

Advance Auto Parts Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 24th. Investors of record on Friday, January 10th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.28%. The ex-dividend date of this dividend is Friday, January 10th. Advance Auto Parts’s dividend payout ratio (DPR) is 136.99%.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported 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.