Ameritas Investment Partners Boosts Stake in Advance Auto Parts

Ameritas Investment Partners Inc. has acquired a significant new position in shares of Advance Auto Parts, Inc. (NYSE:AAP) during the second quarter of 2023. According to the firm’s recent Form 13F filing with the Securities and Exchange Commission, the institutional investor purchased 6,131 shares, valued at approximately $285,000. This acquisition reflects a growing interest among institutional investors in the automotive parts retailer.

Several hedge funds have also adjusted their stakes in Advance Auto Parts. Notably, Rockefeller Capital Management L.P. increased its position by 2.0%, now owning 14,535 shares valued at $676,000 after acquiring an additional 283 shares. Similarly, KLP Kapitalforvaltning AS raised its holdings by 2.5% to 12,500 shares worth $581,000, while Capital Square LLC boosted its stake by 4.3%, now owning 7,265 shares valued at $338,000. The Teacher Retirement System of Texas and Blue Trust Inc. also expanded their positions, reflecting a robust institutional interest in the company. Currently, institutional investors collectively own 88.70% of Advance Auto Parts.

Analysts Weigh In on AAP Stock

Recent activity among analysts has resulted in a mix of upgrades and downgrades for Advance Auto Parts. Morgan Stanley has lowered its price target from $60.00 to $55.00 while maintaining an “equal weight” rating on the stock. Citigroup also revised its price target to $55.00 with a “neutral” rating. In contrast, Wall Street Zen upgraded the stock from a “sell” to a “hold” rating. Overall, the investment community reflects a cautious stance with one analyst rating the stock as a Buy, twenty assigning a Hold rating, and three issuing Sell ratings. The average rating on the stock stands at “Reduce,” with a consensus price target of $51.78 according to MarketBeat.com.

Recent Financial Performance

Advance Auto Parts’ stock opened at $51.88 on October 30, 2023. The company boasts a market capitalisation of $3.11 billion, with a P/E ratio of -8.14. Over the past year, shares have fluctuated between a low of $28.89 and a high of $70.00. During its latest quarterly earnings report, Advance Auto Parts posted earnings per share (EPS) of $0.92, surpassing the consensus estimate of $0.74 by $0.18. While the company recorded revenue of $2.04 billion, this figure marked a 5.2% decline year-over-year.

The company also provided guidance for fiscal year 2025, estimating EPS in the range of $1.750 to $1.850. Analysts predict that Advance Auto Parts will report an EPS of -0.46 for the current fiscal year.

Dividend Announcement and Insider Activity

In addition to its financial performance, Advance Auto Parts recently announced a quarterly dividend of $0.25 per share, payable on January 23, 2024, to stockholders of record as of January 9, 2024. This represents an annualized dividend of $1.00 and a yield of 1.9%. The company’s dividend payout ratio currently stands at -15.90%.

In related news, executive vice president Kristen L. Soler sold 7,662 shares at an average price of $51.00 on November 13, 2023, totaling approximately $390,762. Following this transaction, Soler retains 23,165 shares in the company, valued at around $1,181,415, indicating a 24.85% reduction in her stake. Currently, insiders hold 0.35% of the stock.

Advance Auto Parts, Inc. is a leading provider of automotive replacement parts, accessories, and maintenance items for a variety of vehicles, catering to both domestic and imported models. The company continues to adapt to the fluctuating market while maintaining a robust position in the automotive supply industry.