Shares of Advance Auto Parts, Inc. (NYSE:AAP) are soaring this afternoon on a rumor which has just emerged. According to a source familiar with the matter, Advance Auto Parts, Inc. (NYSE:AAP) has been approached by at least one possible buyer of the company, who may be willing to spend as much as $200 per share on an acquisition. The source states that negotiations are only in their early stages so it is entirely possible that nothing will ever come out of them. Shares jumped as high as $164.25 on a sudden volume surge at approximately 2:30 p.m. ET before giving back about $7.
The stock is currently trading higher by 6.23% or $9.2 following the positive news, hitting $156.81 per share at the time of us publishing this article. About 4.16 million shares traded hands or up 225.00% from the average. AAP has risen 0.33% since May 12, 2015 and is currently uptrending. It has outperformed the S&P500 by 4.00%.
From a total of 11 analysts covering Advance Auto Parts Inc. (NYSE:AAP) stock, 7 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 64% of the ratings are positive. The highest target price is $217 while the lowest target price is $158. The mean of all analyst targets is $193.69 which is 23.52% above today’s ($156.81) stock price. Advance Auto Parts Inc. was the topic of 19 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. BB&T Capital downgraded shares on December 15 to a “Hold” rating. Argus Research upgraded shares to a”Buy” rating and a $217 target share price in their report from an August 18. RBC Capital Markets maintained AAP stock in a recent report from November 13 with a “Outperform” rating. Evercore downgraded the rating on August 5. Evercore has a “Hold” rating and a $179 price target on shares. Finally, Vetr upgraded the stock to a “Buy” rating in a report they issued on an August 25.
The institutional sentiment increased to 1.23 in Q2 2015. It’s up 0.46, from 0.77 in 2015Q2. The ratio increased, as 32 funds sold all their Advance Auto Parts, Inc. shares they owned while 167 reduced their positions. 103 funds bought stakes while 142 increased their total positions. Institutions now own 81.96 million shares which is 14.11% more than the previous share count of 71.83 million in 2015Q2.
12Th Street Asset Management Company Llc holds 10.73% of its total portfolio in Advance Auto Parts, Inc., equating to 154,422 shares. Standard Pacific Capital Llc Ca owns 43,215 shares representing 8.19% of their total US portfolio. Moreover, Starboard Value Lp has 7.23% of their total portfolio invested in the company, equating to 1.71 million shares. The New York-based Clearline Capital Lp has a total of 6.83% of their portfolio invested in the stock. Scharf Investments Llc, a California-based fund reported 1.12 million shares owned.
Advance Auto Parts, Inc. is a provider of automotive aftermarket parts. The company has a market cap of $11.54 billion. The company’s stores and branches offer a selection of brand name, original equipment maker and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks. It has 23.04 P/E ratio. The firm serves its do-it-for-me (commercial) clients and do-it-yourself (DIY) clients through a variety of channels ranging from traditional brick and mortar store locations to self-serving e-commerce sites.