The stock price of Advance Auto Parts Inc (NYSE: AAP) has surged by 6.37 when compared to previous closing price of 37.69, but the company has seen a -1.11% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-17 that The sale of Worldpac for $1.5 billion significantly strengthens AAP’s balance sheet, eliminating solvency risk and providing a cash cushion worth nearly half its total market cap. AAP’s restructuring plan includes closing 727 stores and reducing headcount, a difficult but necessary move to create a stronger, more profitable foundation. Management aims for 7% operating margins by FY2027, achieved solely through cost savings, with additional upside potential from top-line growth.
Is It Worth Investing in Advance Auto Parts Inc (NYSE: AAP) Right Now?
Advance Auto Parts Inc (NYSE: AAP) has a price-to-earnings ratio that is above its average at 55.02x. The stock has a 36-month beta value of 1.20. Opinions on the stock are mixed, with 9 analysts rating it as a “buy,” 4 as “overweight,” 23 as “hold,” and 1 as “sell.”
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The public float for AAP is 59.07M, and at present, short sellers hold a 17.91% of that float. On November 19, 2024, the average trading volume of AAP was 3.08M shares.
AAP’s Market Performance
AAP’s stock has seen a -1.11% decrease for the week, with a 0.68% rise in the past month and a -34.07% fall in the past quarter. The volatility ratio for the week is 6.72%, and the volatility levels for the past 30 days are at 4.44% for Advance Auto Parts Inc The simple moving average for the past 20 days is 5.06% for AAP’s stock, with a -33.13% simple moving average for the past 200 days.
Analysts’ Opinion of AAP
Many brokerage firms have already submitted their reports for AAP stocks, with ROTH MKM repeating the rating for AAP by listing it as a “Neutral.” The predicted price for AAP in the upcoming period, according to ROTH MKM is $40 based on the research report published on October 16, 2024 of the current year 2024.
Wedbush, on the other hand, stated in their research note that they expect to see AAP reach a price target of $55. The rating they have provided for AAP stocks is “Outperform” according to the report published on October 15th, 2024.
Mizuho gave a rating of “Neutral” to AAP, setting the target price at $78 in the report published on March 19th of the current year.
AAP Trading at 2.66% from the 50-Day Moving Average
After a stumble in the market that brought AAP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -54.73% of loss for the given period.
Volatility was left at 4.44%, however, over the last 30 days, the volatility rate increased by 6.72%, as shares sank -2.17% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.54% upper at present.
During the last 5 trading sessions, AAP fell by -1.11%, which changed the moving average for the period of 200-days by -40.86% in comparison to the 20-day moving average, which settled at $38.16. In addition, Advance Auto Parts Inc saw -34.31% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at AAP starting from Jones Jeffrey J II, who purchase 69 shares at the price of $36.74 back on Oct 25 ’24. After this action, Jones Jeffrey J II now owns 11,874 shares of Advance Auto Parts Inc, valued at $2,545 using the latest closing price.
Soler Kristen L, the EVP, Chief HR Officer of Advance Auto Parts Inc, purchase 450 shares at $67.00 during a trade that took place back on Jun 03 ’24, which means that Soler Kristen L is holding 15,690 shares at $30,150 based on the most recent closing price.
Stock Fundamentals for AAP
Current profitability levels for the company are sitting at:
- 0.01 for the present operating margin
- 0.41 for the gross margin
The net margin for Advance Auto Parts Inc stands at 0.0. The total capital return value is set at 0.02. Equity return is now at value 0.93, with 0.20 for asset returns.
Based on Advance Auto Parts Inc (AAP), the company’s capital structure generated 0.41 points at debt to capital in total, while cash flow to debt ratio is standing at 0.23. The debt to equity ratio resting at 0.69. The interest coverage ratio of the stock is 1.36.
Currently, EBITDA for the company is 426.36 million with net debt to EBITDA at 8.88. When we switch over and look at the enterprise to sales, we see a ratio of 0.54. The receivables turnover for the company is 16.0for trailing twelve months and the total asset turnover is 0.86. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.34.
Conclusion
To sum up, Advance Auto Parts Inc (AAP) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
