DA Davidson Lowers Earnings Expectations for Advance Auto Parts in FY2026

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) has seen a reduction in fiscal year 2026 earnings estimates by the research firm DA Davidson. In a report published on March 6th, analyst M. Baker lowered the earnings per share (EPS) forecast for Advance Auto Parts to $3.72, decreasing from a previous estimate of $3.83. This adjustment has resulted in a 'Neutral' rating with a price target set at $45.00 for the stock. Additionally, the current consensus estimate for the company’s earnings this year is showing a loss of $0.46 per share.

Furthermore, other analysts have commented on the stock with varied opinions. Wedbush has maintained an 'outperform' rating, setting a price target of $55.00 in a report published on Monday. Meanwhile, UBS Group raised their target for the stock from $42.00 to $44.00, also assigning a 'neutral' rating, while Truist Financial lowered their price target from $39.00 to $34.00, giving it a 'hold' rating. Royal Bank of Canada followed suit, reducing their target price from $50.00 to $44.00 and assigning a 'sector perform' rating. Conversely, Evercore ISI increased their target price from $45.00 to $60.00 and maintained a 'hold' rating.

At present, the stock has received mixed ratings: one analyst has rated it as a 'sell', sixteen have given a 'hold' rating, and one has assigned a 'buy' rating. According to MarketBeat.com, the overall consensus rating for Advance Auto Parts stands at 'Hold', with an average target price of $46.69.

Current Performance and Analytics

As of Friday, Advance Auto Parts stock opened at $33.81, showing a slight decline of 1.6%. Over the past year, the stock has recorded a low of $33.52 and a high of $88.56. The company has a market capitalization of $2.02 billion, a price-to-earnings (PE) ratio of 46.32, and a price-to-earnings-growth (PEG) ratio of 1.98. The stock's beta is 1.15, indicating its volatility compared to the overall market.

Advance Auto Parts has also announced a quarterly dividend scheduled for payment on April 25th, with shareholders on record set to receive $0.25 per share, translating to an annualized dividend of $1.00 and a yield of 2.96%. The ex-dividend date is set for April 11th, with the company's dividend payout ratio currently standing at -17.86%.

Trends in Institutional Investments

Recent data shows a change in institutional holdings of Advance Auto Parts. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in the company worth approximately $14.68 million during the third quarter. Additionally, Wolverine Asset Management LLC increased their holdings by 212.4%, now owning 31,357 shares valued at about $1.22 million. Blue Trust Inc. also expanded their position by 75.9%, owning 2,119 shares valued at around $100,000 following an additional purchase of 914 shares. Other notable changes include Quest Partners LLC, which acquired a new stake worth $579,000, and Moody National Bank Trust Division, which also bought into the company for $1.196 million. Overall, institutional investors currently hold around 88.75% of Advance Auto Parts' stock.

Company Overview

Advance Auto Parts, Inc. specializes in providing automotive replacement parts, accessories, and maintenance items for both domestic and imported vehicles, including cars, vans, SUVs, and trucks. Their product range includes battery accessories, belts and hoses, brakes, clutches, engine parts, exhaust systems, and various other automotive components.

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