Stock Traders Purchase Large Volume of Call Options on Advance Auto Parts (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP) saw unusually large options trading activity on Thursday. Investors purchased 9,998 call options on the stock. This is an increase of approximately 50% compared to the typical daily volume of 6,645 call options.

Wall Street Analyst Weigh In

AAP has been the subject of several research analyst reports. Wedbush reissued an “outperform” rating and issued a $55.00 price objective on shares of Advance Auto Parts in a research note on Monday, March 3rd. Barclays decreased their price target on shares of Advance Auto Parts from $66.00 to $54.00 and set an “equal weight” rating for the company in a report on Thursday, January 9th. Evercore ISI dropped their price objective on shares of Advance Auto Parts from $37.00 to $35.00 and set an “in-line” rating on the stock in a research note on Tuesday, March 11th. Wells Fargo & Company lifted their target price 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. Finally, BMO Capital Markets dropped their price target on shares of Advance Auto Parts from $45.00 to $40.00 and set a “market perform” rating on the stock in a research note on Thursday, February 27th. One analyst has rated the stock with a sell rating, sixteen have issued a hold rating and one has given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $45.13.

Insider Transactions at Advance Auto Parts

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

Hedge Funds Weigh In On Advance Auto Parts

A number of hedge funds have recently modified their holdings of AAP. Price T Rowe Associates Inc. MD grew its stake in Advance Auto Parts by 34.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 6,685,541 shares of the company’s stock worth $316,160,000 after buying an additional 1,706,328 shares during the last quarter. Fuller & Thaler Asset Management Inc. increased its holdings in Advance Auto Parts by 11.2% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 3,449,554 shares of the company’s stock valued at $163,129,000 after purchasing an additional 347,587 shares in the last quarter. Pzena Investment Management LLC raised its position in Advance Auto Parts by 12.5% in the 4th quarter. Pzena Investment Management LLC now owns 3,270,897 shares of the company’s stock valued at $154,681,000 after purchasing an additional 362,239 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in Advance Auto Parts by 12.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,728,289 shares of the company’s stock worth $129,016,000 after purchasing an additional 297,741 shares in the last quarter. Finally, Eminence Capital LP bought a new stake in shares of Advance Auto Parts during the fourth quarter worth $87,214,000. 88.75% of the stock is owned by institutional investors and hedge funds.

Advance Auto Parts Price Performance

NYSE:AAP opened at $40.36 on Friday. 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 moving average of $42.62 and a 200-day moving average of $41.84. Advance Auto Parts has a 52 week low of $33.08 and a 52 week high of $86.47. The company has a market capitalization of $2.41 billion, a price-to-earnings ratio of 55.29, a PEG ratio of 1.98 and a beta of 1.27.

Advance Auto Parts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 25th. Shareholders of record on Friday, April 11th will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 2.48%. The ex-dividend date is Friday, April 11th. Advance Auto Parts’s payout ratio is -17.86%.

About Advance Auto Parts

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.