Tammy M. Finley, Executive Vice President and General Counsel at Advance Auto Parts Inc. (NYSE:AAP), recently sold 1,276 shares of the company's common stock. The transaction, which took place on December 5, 2024, was executed at a price of $44.06 per share, amounting to a total value of $56,220. The sale comes amid challenging times for AAP, whose stock has declined over 31% in the past six months. According to InvestingPro data, the company currently trades at a relatively high P/E ratio of 61.
Following this sale, Finley retains ownership of 24,266 shares in the automotive parts retailer. This transaction was documented in a filing with the Securities and Exchange Commission, reflecting Finley's role as an officer within the company. InvestingPro analysis indicates challenging times ahead, with 18 analysts revising their earnings expectations downward. Discover more insights and detailed analysis in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Advance Auto Parts has been the focus of several analyst adjustments following a decrease in earnings and revenue. TD (TSX:TD) Cowen maintained a hold rating on the company's shares, citing the ambitious turnaround strategy that heavily relies on the reconstruction of the supply chain. Meanwhile, Citi maintained a neutral rating but lowered the stock target from $55.00 to $44.00 due to concerns over the company's ability to expand margins. Truist Securities also reduced the company's target to $39 from $41, maintaining a hold rating, and RBC (TSX:RY) Capital raised its price target to $50, maintaining a sector perform rating. CFRA downgraded the company's stock from hold to sell.
These recent developments come in the wake of Advance Auto Parts' announcement of plans for a corporate revival, aiming for $9 billion in sales and a 7% operating margin by 2027. This includes closing over 500 underperforming stores and enhancing sourcing and merchandising efforts. Despite facing 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. However, analysts express skepticism about the company's ability to successfully expand margins based on previous attempts. These are the recent developments that investors need to be aware of.
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