Decoding Ownership and Performance: Advance Auto Parts Inc(AAP)
Advance Auto Parts Inc (NYSE:AAP) is a leading retailer of aftermarket automotive parts, tools, and accessories to do-it-yourself customers and third-party vehicle repair facilities in North America. As of the end of 2022, the company operated 5,086 stores and serviced 1,311 independently owned Carquest stores, with 59% of its 2022 sales derived from commercial clients.
As of the latest available data, Advance Auto Parts Inc has an outstanding share count of 59.47 million. Institutional ownership stands at 35.07 million shares, constituting 58.98% of the total shares. Meanwhile, insiders hold 3.66 million shares, accounting for 6.15% of the total share count.
Stock Performance Overview
Advance Auto Parts Inc experienced a decline of about 6.15% in its stock value over the past week. As of Oct 18 2023, the stock fell by 1.54%, contrasting with its three-month return of -21.5. A closer look reveals fluctuations in its market cap, which dropped to $4.18 billion in the most recent quarter from $7.23 billion in the preceding one. This volatility has sparked keen interest in the company's ownership trends.
Institutional Ownership and Key Players
Advance Auto Parts Inc's institutional ownership history reveals the levels of trust and confidence that major players have in the company's future. As of 2023-09-30, Advance Auto Parts Inc's institutional ownership level is 58.98%, up from institutional ownership of 56.32% as of 2023-06-30 and down from institutional ownership of 98.08% from a year ago.
Among the most significant stakeholders , the top fund managers owning chunks of Advance Auto Parts Inc's stock are David Einhorn (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), and Keeley-Teton Advisors, LLC (Trades, Portfolio), with 0.06%, 0.03%, and 0.01% of shares outstanding respectively.
Delving into Earnings: Past and Future
Over the past three years, Advance Auto Parts Inc's Ebitda growth averaged 8% per year, which is better than 52.07% of 895 companies in the Retail - Cyclical industry. This growth extends to the five-year marker, with a growth of 9.3%.
Looking forward, the estimated earnings growth for Advance Auto Parts Inc is 0% per year, lower than the earnings growth of 6.5% during the past three years. The EPS Growth Rate (Future 3Y to 5Y Estimate) is projected using a combination of historical data and industry trends, factoring in company-specific elements, broader economic conditions, and anticipated market dynamics.
Insider Ownership and Activities
Insider ownership offers insights into the convictions of the company's board directors and C-level employees. Advance Auto Parts Inc's insider ownership is approximately 6.15% as of 2023-08-31, compared to insider ownership of 5.83% from a year ago, reflecting the increased faith of those intimately familiar with the company's operations.
During the past three months, Advance Auto Parts Inc had 1 insider buy transactions: Lee Eugene I Jr, Director bought 8,670 shares on 2023-09-13.
Next steps
In the ever-evolving realm of stocks, understanding the nuances of ownership and earnings is critical. Advance Auto Parts Inc's recent dip is a case study in how major players react to market shifts, and their movements offer crucial insights for potential investors. As always, a holistic view, combining both past performance and future projections, remains key to sound investment decisions.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
