CSM Advisors LLC Boosts Stake in Advance Auto Parts by 71.6%

CSM Advisors LLC has significantly increased its investment in Advance Auto Parts, Inc. (NYSE:AAP), raising its stake by an impressive 71.6% during the third quarter of 2023. According to the latest 13F filing with the Securities and Exchange Commission (SEC), the institutional investor now holds 89,867 shares of the automotive parts retailer, valued at approximately $5,517,000.

Several other institutional investors have also made notable investments in Advance Auto Parts. For instance, American Century Companies Inc. raised its stake by a staggering 559.0% in the same quarter, acquiring an additional 1,288,986 shares for a total of 1,519,591 shares valued at around $93,303,000. Similarly, Federated Hermes Inc. grew its position by 75.7% during the second quarter, holding 2,387,325 shares worth $110,987,000 after purchasing 1,028,561 shares.

Maple Rock Capital Partners Inc. also increased its holdings by 508.2% in the third quarter, now owning 951,790 shares valued at $58,440,000 following an additional purchase of 795,290 shares. Wellington Management Group LLP entered the scene with a new stake worth approximately $33,610,000. Furthermore, Geode Capital Management LLC raised its holdings by 48.4% in the second quarter, totaling 1,416,636 shares valued at $65,867,000.

As a result of these moves, institutional investors and hedge funds now own a substantial 88.70% of Advance Auto Parts’ stock.

Stock Performance and Financial Metrics

On Monday, shares of Advance Auto Parts opened at $51.73. The stock has experienced fluctuations, with a twelve-month low of $28.89 and a high of $70.00. The company has a market capitalization of $3.11 billion and a price-to-earnings (P/E) ratio of 70.87. Its current ratio stands at 1.75, while the quick ratio is 0.87 and the debt-to-equity ratio is 1.55.

In terms of dividends, Advance Auto Parts recently announced a quarterly dividend of $0.25 per share, which will be paid on April 24, 2024. Shareholders of record on April 10, 2024 will be eligible for this payment. This dividend represents an annualized amount of $1.00 and yields 1.9%; however, the company’s dividend payout ratio currently stands at 136.99%.

Analysts’ Outlook

Market analysts have recently issued various ratings on Advance Auto Parts, reflecting a mix of optimism and caution. Morgan Stanley has set a price target of $60.00, while Roth MKM reaffirmed a “neutral” rating with a price objective of $57.00. Evercore has also set its target price at $60.00. Meanwhile, Wells Fargo & Company has raised its price target from $40.00 to $50.00 and maintains an “equal weight” rating.

Currently, analysts’ ratings include two “Buy” ratings, seventeen “Hold” ratings, and three “Sell” ratings. According to MarketBeat, the average rating for Advance Auto Parts is “Reduce,” with an average target price of $52.93.

Advance Auto Parts, Inc. is recognized as a leading distributor of automotive aftermarket parts, accessories, and maintenance items. Operating a robust network of stores and distribution centers across North America, the company caters to both do-it-yourself customers and professional service providers. Its extensive product portfolio includes engine oils, batteries, cooling system components, and diagnostic tools, among others.

As interest from institutional investors continues to grow, the outlook for Advance Auto Parts remains a topic of keen interest among market participants.