Kristen L. Soler, Executive Vice President and Chief HR Officer of Advance Auto Parts Inc. (NYSE:AAP), recently acquired additional shares of the company. The insider purchase comes as the stock has declined over 33% in the past six months, according to InvestingPro data. According to a Form 4 filing with the Securities and Exchange Commission, Soler purchased 925 shares of common stock on November 26, 2024. The shares were acquired at a weighted average price of approximately $43.12 per share, totaling $39,886. Following this transaction, Soler holds 16,240 shares of Advance Auto Parts directly. The shares were acquired in multiple transactions, with prices ranging from $42.96 to $43.25. Based on InvestingPro analysis, the company currently appears fairly valued, with 18 analysts recently revising earnings expectations downward. Despite market challenges, the company has maintained dividend payments for 19 consecutive years. For deeper insights into insider trading patterns and access to 10+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Advance Auto Parts has been the subject of numerous analyst adjustments following a decrease in earnings and revenue. The company reported a $0.04 loss per share and a 3% decline in revenue to $2.15 billion. TD Cowen maintained a Hold rating, acknowledging the company's new turnaround strategy, while expressing cautious optimism about its success. Citi also maintained a Neutral rating but reduced the stock target from $55.00 to $44.00. Truist Securities and CFRA echoed this cautious sentiment, with Truist reducing the target to $39 from $41 and CFRA downgrading the stock from Hold to Sell. In contrast, RBC Capital raised its price target to $50, citing an effective strategic plan.
In response to these developments, Advance Auto Parts has outlined a strategic plan aiming for $9 billion in sales and a 7% operating margin by 2027. This plan includes closing over 500 underperforming stores and enhancing sourcing and merchandising efforts. Despite challenges such as a system outage and the impact of Hurricane Helene, the company managed to improve its gross profit to $908 million, representing 42.3% of net sales. These are the recent developments that investors need to be aware of.
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