William Blair analyst Phillip Blee has maintained their neutral stance on AAP stock, giving a Hold rating today.
Phillip Blee has given his Hold rating due to a combination of factors affecting Advance Auto Parts. The company’s fourth-quarter sales showed a slight decline compared to the previous year, although they exceeded consensus estimates. Despite stronger sales in the second half of the quarter, particularly in December due to increased demand for certain products, the overall comparable sales still fell short of expectations.
Additionally, the company’s gross margin was significantly below consensus, impacted by inventory adjustments and store closures. The operating loss margin was also worse than anticipated, driven by lower gross margins and increased labor expenses. These challenges, along with the potential for near-term volatility, have led Phillip Blee to maintain a cautious outlook, resulting in a Hold rating for the stock.
In another report released today, Roth MKM also maintained a Hold rating on the stock with a $40.00 price target.
Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is neutral on the stock.