Advance Auto Parts, Inc. (NYSE:AAP) Sees Large Decline in Short Interest

Advance Auto Parts, Inc. (NYSE:AAP) was the recipient of a significant drop in short interest during the month of February. As of February 28th, there was short interest totalling 8,440,000 shares, a drop of 14.5% from the February 13th total of 9,870,000 shares. Based on an average trading volume of 2,220,000 shares, the short-interest ratio is currently 3.8 days. Approximately 14.3% of the company’s shares are sold short.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Evercore ISI lowered their target price on shares of Advance Auto Parts from $37.00 to $35.00 and set an “in-line” rating for the company in a research note on Tuesday, March 11th. Wells Fargo & Company lifted their price target on shares of Advance Auto Parts from $40.00 to $45.00 and gave the company an “equal weight” rating in a research note on Monday, January 6th. Citigroup dropped their price objective on shares of Advance Auto Parts from $47.00 to $40.00 and set a “neutral” rating on the stock in a report on Thursday, February 27th. BMO Capital Markets dropped their price objective on shares of Advance Auto Parts from $45.00 to $40.00 and set a “market perform” rating on the stock in a report on Thursday, February 27th. Finally, Truist Financial dropped their price objective on shares of Advance Auto Parts from $39.00 to $34.00 and set a “hold” rating on the stock in a report on Thursday, February 27th. One analyst has rated the stock with a sell rating, sixteen have issued a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $45.13.

Insider Activity

In other news, Director Eugene I. Lee, Jr. bought 14,640 shares of the stock in a transaction that occurred on Thursday, March 6th. The stock was acquired at an average price of $34.15 per share, with a total value of $499,956.00. Following the completion of the purchase, the director now directly owns 34,070 shares of the company’s stock, valued at approximately $1,163,490.50. This represents a 75.35 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Shane M. Okelly bought 1,500 shares of the stock in a transaction that occurred on Tuesday, March 11th. The shares were purchased at an average cost of $36.79 per share, with a total value of $55,185.00. Following the purchase, the chief executive officer now directly owns 183,121 shares of the company’s stock, valued at $6,737,021.59. The trade was a 0.83 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 0.35% of the company’s stock.

Institutional Investors Weigh In On Advance Auto Parts

A number of institutional investors have recently added to or reduced their stakes in AAP. Versant Capital Management Inc grew its position in Advance Auto Parts by 207.4% in the 4th quarter. Versant Capital Management Inc now owns 541 shares of the company’s stock worth $26,000 after purchasing an additional 365 shares in the last quarter. Allworth Financial LP grew its position in shares of Advance Auto Parts by 1,543.4% during the 4th quarter. Allworth Financial LP now owns 871 shares of the company’s stock valued at $40,000 after acquiring an additional 818 shares during the period. Vision Financial Markets LLC bought a new position in shares of Advance Auto Parts during the 4th quarter valued at approximately $42,000. Advisory Services Network LLC bought a new position in shares of Advance Auto Parts during the 4th quarter valued at approximately $46,000. Finally, KBC Group NV grew its position in shares of Advance Auto Parts by 29.1% during the 3rd quarter. KBC Group NV now owns 1,749 shares of the company’s stock valued at $68,000 after acquiring an additional 394 shares during the period. 88.75% of the stock is owned by institutional investors.

Advance Auto Parts Trading Up 1.8 %

Shares of AAP stock opened at $37.58 on Friday. Advance Auto Parts has a 52-week low of $33.08 and a 52-week high of $88.56. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.62 and a current ratio of 1.34. The company has a 50-day simple moving average of $43.30 and a two-hundred day simple moving average of $41.97. The company has a market capitalization of $2.25 billion, a price-to-earnings ratio of 51.47, a PEG ratio of 1.98 and a beta of 1.27.

Advance Auto Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 25th. Shareholders of record on Friday, April 11th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.66%. The ex-dividend date of this dividend is Friday, April 11th. Advance Auto Parts’s payout ratio is -17.86%.

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.