ROTH MKM has recently resumed Advance Auto Parts, Inc. (AAP) stock to Neutral rating, as announced on October 16, 2024, according to Finviz. Earlier, on October 15, 2024, Wedbush had raised the stock from a Neutral to Outperform, setting a price target of $55. Mizuho also initiated Neutral rating with a price target of $78. Additionally, William Blair resumed Mkt Perform rating on December 13, 2023. BofA Securities analysts, in their report published on November 16, 2023, also reduced Underperform rating and set a price target of $60 for Advance Auto Parts, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Advance Auto Parts, Inc. (AAP) Stock Trading Recap
On Friday, Advance Auto Parts, Inc. (AAP) stock saw a decline, ending the day at $41.5 which represents a decrease of $-2.94 or -6.62% from the prior close of $44.44. The stock opened at $44.03 and touched a low of $41.01 during the day, reaching a high of $44.06. The volume of shares traded was 2.82 million falling short of the average volume of 2.91 million.
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AAP Stock Performance and Moving Averages
In recent trading, Advance Auto Parts, Inc. (AAP) stock price has shown some volatility, fluctuating 7.26% over the last five trades and 15.44% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -41.25%, and it has plunged by -8.41% in the previous three months. Currently, AAP is trading at 4.04%, 6.02%, and -29.67% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AAP, a Consumer Cyclical sector stock, is trading -53.14% below its 52-week high but remains 16.61% above its 52-week low. The Average True Range (ATR) (14 days) of 1.99 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Advance Auto Parts, Inc.’s Profitability and Valuation Ratios
Advance Auto Parts, Inc.’s profitability metrics reveal financial health. The company currently boasts an operating margin of 0.82% and a profit margin of 0.41%, with a gross margin of -41.25%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Advance Auto Parts, Inc.’s market capitalization stands at $2.48 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 56.96, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 25.21. Additionally, the Price-to-Sales Ratio is 0.23, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.95, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.12% of Advance Auto Parts, Inc. (AAP)’s shares, while financial institutions hold 109.06%.
Notable insider trades include Word Herman L Jr, EVP, U.S. Stores & CQ Ind. at Advance Auto Parts, Inc. (AAP), who sold 1858 shares on Mar 21 ’24, at $86.08 each, totaling $0.16 million.
