Insider Activity Report: Advance Auto Parts (AAP)

Kristen Soler, EVP at Advance Auto Parts (AAP), recently bought 1,000 shares. The buy increased her stake by 9 percent, and came to a total cost just under $53,000.

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  • This marks the first insider activity since September, when a company director bought 8,670 shares for just under $500,000. And other company directors made a cluster of buys back in June, when AAP traded about $13 per share higher than today’s prices.

    In total, Advance Auto Parts insiders own 1.1 percent of shares.

    The auto parts retailer is down over 60 percent in the past year. Revenues are up a scant 3 percent, but the company has struggled with earnings.

    Given the rising costs of financing a new car, however, there’s likely some demand for auto parts and repair work, and shares are starting to form a base for a potential trend higher next year.

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  • Action to take: Investors may like shares here. Advance Auto Parts trades at just 0.3 times its price to sales, an inexpensive metric for a retailer, and at 16 times forward earnings.

    The company also pays a 1.8 percent dividend at current prices.

    For traders, shares look set for a long-term rebound after setting a price base for the past few months. The June 2024 $75 calls, last going for about $3.50, could see mid-to-high double-digit returns on a move higher.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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