Insider’s View: Deciphering Advance Auto Parts Inc (AAP)’s Financial Health Through Ratios

Those aiming for above-average market returns often engage in the meticulous process of stock picking. Choosing the right stocks can make a substantial difference in your wealth.

The price of Advance Auto Parts Inc (NYSE: AAP) closed at $75.64 in the last session, up 1.15% from day before closing price of $74.78. In other words, the price has increased by $1.15 from its previous closing price. On the day, 0.77 million shares were traded. AAP stock price reached its highest trading level at $75.815 during the session, while it also had its lowest trading level at $74.0.

Ratios:

We take a closer look at AAP’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 8.96 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 100.29. For the most recent quarter (mrq), Quick Ratio is recorded 0.29 and its Current Ratio is at 1.20. In the meantime, Its Debt-to-Equity ratio is 1.76 whereas as Long-Term Debt/Eq ratio is at 1.59.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Mizuho on March 19, 2024, initiated with a Neutral rating and assigned the stock a target price of $78.

BofA Securities Downgraded its Neutral to Underperform on November 16, 2023, whereas the target price for the stock was revised from $60 to $43.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Mar 27 ’24 when Windom Brent bought 4,700 shares for $85.34 per share. The transaction valued at 401,098 led to the insider holds 10,000 shares of the business.

Word Herman L Jr sold 1,858 shares of AAP for $159,937 on Mar 21 ’24. The EVP, U.S. Stores & CQ Ind. now owns 10,448 shares after completing the transaction at $86.08 per share. On Mar 19 ’24, another insider, Windom Brent, who serves as the Director of the company, bought 2,617 shares for $83.00 each. As a result, the insider paid 217,211 and bolstered with 5,300 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, AAP now has a Market Capitalization of 4508862464 and an Enterprise Value of 8448157696. As of this moment, Advance’s Price-to-Earnings (P/E) ratio for their current fiscal year is 102.16, and their Forward P/E ratio for the next fiscal year is 17.11. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.61. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.40 while its Price-to-Book (P/B) ratio in mrq is 1.79. Its current Enterprise Value per Revenue stands at 0.748 whereas that against EBITDA is 20.075.

Stock Price History:

Over the past 52 weeks, AAP has reached a high of $127.31, while it has fallen to a 52-week low of $47.73. The 50-Day Moving Average of the stock is -2.08%, while the 200-Day Moving Average is calculated to be 16.70%.

Shares Statistics:

According to the various share statistics, AAP traded on average about 1.92M shares per day over the past 3-months and 1049120 shares per day over the past 10 days. A total of 59.51M shares are outstanding, with a floating share count of 59.00M. Insiders hold about 1.02% of the company’s shares, while institutions hold 101.76% stake in the company. Shares short for AAP as of 1713139200 were 4783202 with a Short Ratio of 2.49, compared to 1710460800 on 5187473. Therefore, it implies a Short% of Shares Outstanding of 4783202 and a Short% of Float of 9.08.

Dividends & Splits

The forward annual dividend rate for AAP is 1.00, which was 2.25 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 0.030088259The stock’s 5-year Average Dividend Yield is 2.25.

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