August 24, 2023 – Advance Auto Parts, Inc. (NYSE:AAP) has experienced a significant reduction in its position by Bessemer Group Inc., according to the latest Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor sold off 99.4% of its position, resulting in a decline of 370,188 shares during the first quarter. As a result, Bessemer Group Inc.’s holdings in Advance Auto Parts amounted to $270,000 as of their most recent SEC filing.
This recent development comes shortly after Advance Auto Parts released its quarterly earnings data on August 23rd. The company reported earnings per share (EPS) of $1.43 for the quarter, falling short of the consensus estimate of $1.66 by ($0.23). Despite this disappointment, Advance Auto Parts saw a net margin of 3.61% and a return on equity of 22.67%. Additionally, the firm generated $2.69 billion in revenue during the quarter, surpassing analyst estimates of $2.66 billion. However, it is worth noting that compared to the same quarter last year, the company’s revenue was only up by 0.8%.
Equities analysts have weighed in on these recent developments with mixed opinions about Advance Auto Parts’ future performance in the market. UBS Group reduced their target price from $132.00 to $75.00 in a report published on June 1st while Barclays lowered their target price from $129.00 to $69.00 on the same day. Citigroup also reduced their price objective from $126.00 to $76.00 while Morgan Stanley adjusted theirs from $130 to $80 around that period as well.
Furthermore, JPMorgan Chase & Co., downgraded shares of Advance Auto Parts from an “overweight” rating to a “neutral” rating and lowered their price objective from $165.00 to $84.00.
Currently, according to Bloomberg, the consensus rating for Advance Auto Parts is “Hold” with an average price target of $96.16.
As we move forward, it is anticipated that Advance Auto Parts will post earnings per share of 5.98 for the current fiscal year, as predicted by research analysts.
Overall, these recent developments highlight the challenges facing Advance Auto Parts. The reduction in position by Bessemer Group Inc., coupled with lower-than-expected quarterly earnings, has caused uncertainty among investors and stirred a range of opinions from analysts. It will be interesting to see how the company navigates these obstacles and responds to market conditions going forward.
Changes in Institutional Investor Positions and Insider Trading Activities Impact Advance Auto Parts’ Future Performance
Stock Analysis: Advance Auto Parts Faces Changes in Institutional Investor Positions
August 24, 2023
Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider, has recently witnessed changes in its institutional investor positions. In addition to this, key insiders have made significant stock purchases. These developments have caught the attention of market analysts who believe they could have an impact on the company’s future performance.
Among the institutional investors making changes to their positions in Advance Auto Parts is Ameritas Advisory Services LLC. The firm acquired a new stake in the company’s shares during the first quarter of this year, amounting to approximately $29,000 in value. Similarly, Machina Capital S.A.S. also bought a new position in Advance Auto Parts during the same quarter, with the investment valued at around $32,000.
Covestor Ltd raised its holdings in Advance Auto Parts by an impressive 113.7% during the first quarter. The firm now owns 156 shares of the company’s stock worth $32,000 after purchasing an additional 83 shares within that period. Another remarkable increase in holdings came from Hexagon Capital Partners LLC, which raised its position by a staggering 9,933.3% during the first quarter. The firm now holds 301 shares of Advance Auto Part’s stock worth $37,000 after acquiring an additional 298 shares.
Furthermore, Industrial Alliance Investment Management Inc. witnessed a significant surge of 469.4% in its holdings within Advance Auto Parts during the fourth quarter of last year. The Canadian investment management firm currently owns 353 shares valued at $52,000 after purchasing an additional 291 shares.
These institutional investors’ moves reflect their confidence and interest in holding stakes within Advance Auto Parts’ operations and potential growth prospects.
On another note, Director Douglas A. Pertz made a notable acquisition of 4,575 shares of Advance Auto Parts stock on Monday, June 12th. The shares were purchased at an average cost of $66.02 per share, totaling a value of $302,041.50. Following this purchase, Pertz now holds 12,831 shares in the company with an estimated worth of $847,102.62.
Similarly, Director Carla Jean Bailo acquired 500 shares of Advance Auto Parts’ stock on Wednesday, June 7th, at an average cost of $65.90 per share. The total transaction amounted to $32,950. Notably, insiders have bought a total of 5,463 shares within the last ninety days with a cumulative value of approximately $359,924.
These insider purchases indicate a vote of confidence from key individuals within the organization regarding the company’s future prospects and valuation.
In terms of stock performance analysis, Advance Auto Parts currently trades on the New York Stock Exchange (NYSE) under the symbol AAP. As of today’s trading session opening price, it started at $69.44 per share.
The company’s fifty-day moving average price is recorded as $70.24 while its two hundred-day moving average sits at $103.02 per share. Over the past year, Advance Auto Parts has seen a range between its lowest point at $63.56 and its highest peak at $194.35.
Advance Auto Parts holds a market capitalization value of approximately $4.13 billion and maintains a relatively low debt-to-equity ratio of 0.68 compared to some industry peers.
As analysts continue to monitor these recent changes in institutional investor positions and insider trading activities within Advance Auto Parts, investors eagerly await their impact on the company’s future performance and prospects.
Disclaimer: This article does not provide any financial advice or investment recommendations regarding Advance Auto Parts Inc.’s stock (AAP). It is solely for informational purposes only and should not be considered as a basis for any investment decision.