Cramer Rosenthal Mcglynn LLC has acquired a new stake in Advance Auto Parts, Inc. (NYSE:AAP) during the third quarter of 2023, investing approximately $3,950,000 to purchase 64,332 shares. This information was disclosed in a recent filing with the Securities and Exchange Commission. The investment firm is part of a broader trend, as several institutional investors have adjusted their positions in Advance Auto Parts.
Notably, Federated Hermes Inc. increased its stake in Advance Auto Parts by 12.8% during the same period, bringing its total holdings to 2,694,027 shares, valued at around $165,413,000. This included the acquisition of an additional 306,702 shares. Similarly, State Street Corp raised its holdings by 13.5% in the second quarter, now owning 2,406,039 shares worth approximately $111,857,000 after adding 286,148 shares.
American Century Companies Inc. made a substantial move by growing its position by 559.0% in the third quarter, acquiring 1,288,986 shares to reach a total of 1,519,591 shares, valued at about $93,303,000. Geode Capital Management LLC also increased its stake by 48.4%, owning 1,416,636 shares worth around $65,867,000, while Bank of America Corp DE lifted its holdings by 6.5%, now owning 947,754 shares valued at $44,061,000. Currently, institutional investors and hedge funds control 88.70% of Advance Auto Parts stock.
Advance Auto Parts Financial Snapshot
As of the latest trading session, shares of Advance Auto Parts opened at $51.09. The company has maintained a current ratio of 1.75, a quick ratio of 0.87, and a debt-to-equity ratio of 1.55. With a market capitalization of $3.07 billion, Advance Auto Parts exhibits a price-to-earnings (P/E) ratio of 69.99 and a P/E growth (P/E/G) ratio of 0.68. The stock has experienced a fifty-day moving average of $48.63 and a two-hundred-day moving average of $52.05. The twelve-month trading range has seen lows of $28.89 and highs of $70.00.
In terms of dividends, the company has announced a quarterly payment scheduled for April 24, 2024. Shareholders on record as of April 10, 2024 will receive a dividend of $0.25, which translates to an annualized dividend of $1.00 and a yield of 2.0%. The dividend payout ratio stands at 136.99%.
Analyst Ratings and Market Outlook
Several research firms have recently weighed in on Advance Auto Parts. Weiss Ratings reiterated a “sell” rating in a report published on January 21, 2024. In contrast, Roth MKM maintained a “neutral” rating with a price target of $57.00 on February 19, 2024. Wells Fargo & Company increased its price target from $40.00 to $50.00, assigning an “equal weight” rating on February 11, 2024. Truist Financial raised its target from $48.00 to $57.00, categorizing it as a “hold” on February 17, 2024. Royal Bank of Canada also lifted its target from $57.00 to $63.00, rating the stock as “sector perform”.
Currently, two analysts have rated Advance Auto Parts with a Buy rating, while seventeen have assigned a Hold rating, and three have issued a Sell rating. According to MarketBeat, the average rating is “Reduce” with a target price of $52.93.
Advance Auto Parts, Inc. is a prominent distributor of automotive aftermarket parts, accessories, and maintenance items, operating a network of stores and distribution centres across North America. With a focus on both do-it-yourself customers and professional service providers, the company offers an array of products, including replacement parts, batteries, engine components, and performance products for cars and light trucks.
