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Raymond James Financial Services Advisors Inc., a prominent investment management company, recently disclosed that it has trimmed its position in shares of Advance Auto Parts, Inc. by 32.1% during the fourth quarter of 2022. The company’s most recent report with the Securities and Exchange Commission (SEC) shows that Raymond James sold 18,088 shares of Advance Auto Parts’ stock over this period, leaving the firm with a total of 38,214 shares remaining. With this update, Raymond James now holds a mere 0.06% stake in Advance Auto Parts, which was worth a substantial $5,619,000 at the end of the reporting period.
Advance Auto Parts is an American automotive aftermarket parts supply and distribution company. The corporation operates through four primary segments: Advance Auto Parts/Carquest U.S., Carquest Canada, Worldpac, and Independents. Established by Arthur Taubman in 1929 in Raleigh, North Carolina, the firm has become a leading provider of quality automotive products for professional installers and DIY customers alike.
Shares of AAP opened at $121.48 on Friday and have seen significant fluctuations between its one-year low of $109.05 and one-year high of $212.25.In terms of key financial ratios,the business currently boasts a current ratio of 1.13 along with a quick ratio of 0.21 that highlights its strong liquidity position.The company also maintains an impressive P/E ratio of 14.69 along with a beta score pf 1.10 which makes it quite an attractive asset in turbulent economic times.On the other hand,the debt-to-equity ratios to be on watch-out as it stands at .44 which could be further analyzed to identify potential risks if any with respect to investors’ interests
Despite Raymond James’s decision to reduce its position significantly within Advance Auto Parts during Q4 o the year preceding our reference date(April19th,2023), the automotive parts provider remains an intriguing asset for investors searching for investment opportunities in the auto industry. With this company’s broad portfolio of automotive products and their focus on providing quality and reliable service to both professional installers and do-it-yourself customers, Advance Auto Parts has positioned itself to appeal to a wide range of consumers. As such, the corporation may likely remain a crucial player not just in its industry but also as an attractive asset for potential investors.
Updated on: 20/05/2023
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Institutional Investment Fluctuations and Mixed Analyst Opinions: A Look into Advance Auto Parts’ Performance Prospects
Advance Auto Parts has recently witnessed a range of changes in institutional investment, with several hedge funds increasing or decreasing their stakes in the company. Gamco Investors INC, for example, has raised its stake by 15.7% during Q3 and now owns 2,389 shares worth $373,000. Distillate Capital Partners LLC also raised its stake in Advance Auto Parts by 15.1% during Q3, now owning 33,328 shares valued at $5,443,000. Arizona State Retirement System increased its stake by 2.2% during Q4 and now owns 17,016 shares worth $2,502,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its stake by a staggering 170.3% during Q4 and now owns 46,127 shares worth $6,782,000. However, despite these recent investments from institutional investors which suggest optimism within the company’s prospects for growth and prosperity moving forward since then the experts had varying opinions on AAP’s prospects.
Several brokerages remain cautious about setting high expectations for Advance Auto Parts and have lowered or adjusted their target prices accordingly – Wells Fargo & Company reduced their price objective from $150 to $125 while Roth Mkm set a $140 price target (down from an original target of $180) and lowered the company rating to “neutral.” Argus similarly cut the firm’s rating from a “buy” to a “hold.” Overall ratings are relatively mixed amongst analysts for AAP: twelve equities research firms currently hold a “hold” rating on Advance Auto Parts stock; five firms assign it a “buy” rating; and one analyst has given it a “strong buy”. The consensus among these ratings is that it is rated as a ‘Hold’ with an average target price expected at $161.17.
Founded over nine decades ago and headquartered in Raleigh, NC., Advance Auto Parts operates through multiple segments, including Advance Auto Parts/Carquest U.S., Carquest Canada, Worldpac, and Independents. The company supplies and distributes aftermarket automotive products for use by both customers who are do-it-yourself installers as well as professional installers. In February of this year, Advance Auto Parts reported its Q4 2022 earnings, having registered $2.88 earnings per share – exceeding the anticipated consensus estimate of $2.41 per share by a notable 47 cents, making it another successful quarter for the firm’s investors. One area that had improved was their net margin which had increased to 4.50% and the earnings results showed a revenue generated $2.47 billion for Q4 FY2021, compared with an expectation of $2.42 billion from analysts before release.
Finally, investors can take note that Advance Auto Parts has paid out a quarterly dividend during Q2 2023 on April 28th with shareholders being issued a dividend of $1.50 per share if claimed up until April 14th in what is now an established annualized dividend payout ratio of around 72.55%. Despite differing opinions among market experts regarding the future performance predictions for AAP shares moving forward in time due to related factors including institutional investment activity fluctuations and varying levels of analyst confidence in regard to Target price – when combined with previous profitability metrics and target prices – there are still concrete reasons behind why current or prospective investors may opt to consider investing in Advance Auto Parts going into the future cautiously given mixed results across various quarters in recent times within the auto parts sector globally as well as amongst AAP peers since then is yet to be realized moving forward as they execute against new challenges and opportunities that arise while looking ahead beyond current uncertainties discussed towards achieving long-term growth objectives down the road ahead.’