Advance Auto Parts Shares Surpass Analyst Target Price of $40.89
Recently, shares of Advance Auto Parts Inc (Symbol: AAP) have increased, trading at $49.43 per share, above the average analyst 12-month target price of $40.89. When a stock reaches or exceeds an analyst’s target, they typically evaluate their position. They may either downgrade based on valuation or adjust their target price upwards. Additionally, analyst reactions can often depend on any fundamental developments affecting the company that might justify a new target price.
Within the Zacks coverage universe, 18 analysts have contributed to the average target for Advance Auto Parts Inc. This average reflects a range of opinions, with some analysts setting lower targets—one as low as $28.00—while others have set targets as high as $65.00. The standard deviation among these targets is $8.337.
The purpose of examining the average price target is to leverage a “wisdom of crowds” approach. This method combines insights from multiple analysts, rather than relying on a single expert’s opinion. With AAP trading above the average target price of $40.89, investors now face a vital decision: Is $40.89 just a waypoint toward an even higher target, or has the valuation reached a point where it might be prudent to consider selling some shares?
| Recent AAP Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 1 | 2 | 2 | 2 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 20 | 20 | 20 | 20 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 3.04 | 2.96 | 2.96 | 2.96 |
The average rating reflected in the table above ranges from 1 to 5, where 1 represents a Strong Buy and 5 indicates a Strong Sell. This analysis utilized data provided by Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
