H Partners Increases Stake in Advance Auto Parts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy AAP?
Source: Fool
- Stake Increase: H Partners Management increased its stake in Advance Auto Parts by 375,000 shares in Q4 2026, with an estimated transaction value of $18.80 million, bringing the total position value to $35.37 million, making it the fund's third-largest holding and indicating confidence in the company's transformation.
- Performance Recovery: Advance Auto Parts shares rose 44.2% over the past year, outperforming the S&P 500 by 24 percentage points, reflecting a gradual recovery under new management and improving market confidence.
- Operational Improvement: The company reduced its debt burden by selling 700 underperforming stores and exiting the California market, with adjusted operating income margin improving from -2.5% in H2 2023 to 2.5% in 2025, and is projected to reach 4% in 2026.
- Market Competitiveness: With a price-to-sales ratio of only 0.37 times, compared to competitors O’Reilly Auto and AutoZone at 4.5 and 3.2 times respectively, Advance Auto Parts shows significant potential value, especially with new management and technological support paving the way for higher profitability.
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Analyst Views on AAP
Wall Street analysts forecast AAP stock price to fall
12 Analyst Rating
1 Buy
10 Hold
1 Sell
Hold
Current: 51.570
Low
40.00
Averages
51.55
High
65.00
Current: 51.570
Low
40.00
Averages
51.55
High
65.00
About AAP
Advance Auto Parts, Inc. is an automotive aftermarket parts provider in North America, serving both professional installers (professional) and do-it-yourself (DIY) customers, as well as independently owned operators. The Company's stores and branches offer a range selection of brand names, original equipment manufacturer (OEM) and owned brand automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy-duty trucks. The Company operates approximately 4,788 stores primarily within the United States (U.S.), with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves approximately 934 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Its stores operate primarily under the Advance Auto Parts and Carquest trade names.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Advance Auto Parts Extends Partnership with Team Penske
- Brand Visibility: Advance Auto Parts will showcase its branding on Ryan Blaney's No. 12 Ford Mustang during four NASCAR Cup Series races, significantly enhancing its visibility in the automotive aftermarket sector.
- Event Schedule: Blaney is set to appear in four races in 2026, including the Cook Out 400 at Martinsville Speedway on March 29 and the Coke Zero Sugar 400 at Daytona International Speedway on August 29, which is expected to draw significant fan attention and boost brand impact.
- Marketing Strategy: This partnership, now in its seventh year, is highlighted by Advance's executives as a crucial part of their marketing and sponsorship strategy, aimed at strengthening customer loyalty through the racing culture.
- Historical Achievements: Blaney's last victory in the Advance car was at the 2025 Coke Zero Sugar 400, showcasing the strong connection between the brand and successful racing, further solidifying its position in the industry.
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Rising Oil Prices: The war has contributed to an increase in oil prices, affecting economic conditions and investor sentiment.
Investment Strategy: Investors are advised to seek stocks that can perform well even in a stable interest rate environment.
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Declining Oil Prices Boost Advance Auto Parts Stock
- Stock Surge: Advance Auto Parts shares rose by 7.4% amid a significant drop in oil and gasoline prices, indicating growing market confidence in the company's turnaround plan, especially following President Trump's hints at a potential resolution to the Gulf conflict.
- Restructuring Progress: The company is executing a restructuring plan that includes closing underperforming stores and focusing on leadership geographies, with expectations to increase adjusted operating margins from 2.5% in 2025 to 3.8%-4.5% by 2026, which will enhance overall profitability.
- Impact of Gas Prices: The decline in gasoline prices not only reduces driving costs but may also lead to fewer accidents and less vehicle wear, positively impacting auto parts retailers, and the stock's rise reflects optimistic market expectations for Advance Auto Parts' future performance.
- Market Dynamics: Despite ongoing conflicts in the Gulf and Iran's denial of negotiations with the U.S., the market is focusing on Trump's dialogue, and the stock's increase demonstrates investor confidence in Advance Auto Parts' ability to remain competitive in an uncertain environment.
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Advance Auto Parts Shares Rise 7.4% Amid Oil Price Correction
- Stock Price Surge: Advance Auto Parts shares rose by 7.4% today as the Trump administration hinted at a potential resolution to ongoing conflicts, reflecting market optimism in response to falling oil and gasoline prices.
- Impact of Gas Prices: High gasoline prices discourage driving, leading to fewer accidents and reduced vehicle wear, which negatively impacts auto parts retailers; conversely, falling gas prices boost Advance Auto's stock as driving becomes more affordable.
- Restructuring Progress: The company is advancing its restructuring plan by closing underperforming stores and focusing on key geographic areas, alongside plans to open larger strategic market hub stores, enhancing its competitive positioning in the market.
- Margin Expectations: Management anticipates an increase in adjusted operating margins from 2.5% in 2025 to a range of 3.8%-4.5% by 2026, indicating potential for improved financial performance amid declining oil prices.
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Vulcan Materials Co Options Trading Volume Surges
- Surge in Options Volume: Vulcan Materials Co's options trading volume reached 10,541 contracts today, equivalent to approximately 1.1 million shares, indicating a robust activity level at 71.7% of its average daily trading volume of 1.5 million shares over the past month.
- High Liquidity in Puts: Notably, the $300 strike put option has seen significant activity with 5,000 contracts traded today, representing about 500,000 underlying shares, reflecting market expectations for potential price declines.
- Advance Auto Parts Options Activity: Concurrently, Advance Auto Parts recorded an options trading volume of 12,267 contracts, translating to approximately 1.2 million shares, which is 70.2% of its average daily trading volume of 1.7 million shares over the past month, indicating strong market interest.
- Active Call Options: Within Advance Auto Parts, the $50 strike call option has traded 3,835 contracts, representing around 383,500 shares, suggesting that investors are optimistic about the company's future performance.
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Advance Auto Parts Extends Partnership with Team Penske
- Brand Visibility: Advance Auto Parts will showcase its branding on Ryan Blaney's No. 12 Ford Mustang during four NASCAR Cup Series races, significantly enhancing its visibility in the automotive aftermarket sector.
- Event Schedule: Blaney is set to appear in four races in 2026, including the Cook Out 400 at Martinsville Speedway on March 29 and the Coke Zero Sugar 400 at Daytona International Speedway on August 29, which is expected to draw significant fan attention and boost brand impact.
- Marketing Strategy: This partnership, now in its seventh year, is highlighted by Advance's executives as a crucial part of their marketing and sponsorship strategy, aimed at strengthening customer loyalty through the racing culture.
- Historical Achievements: Blaney's last victory in the Advance car was at the 2025 Coke Zero Sugar 400, showcasing the strong connection between the brand and successful racing, further solidifying its position in the industry.
See More
Iran and the Federal Reserve Remain Concerns: These Stocks May Alleviate Investor Anxiety.
- Impact of War on Monetary Policy: Federal Reserve rate cuts are being influenced by the ongoing war with Iran, leading to rising oil prices.
- Investment Strategy: Investors are advised to seek stocks that can perform well even if the Federal Reserve maintains current interest rates.
See More
7 Stocks, Including Airbnb, to Consider Buying That Can Succeed Even if Interest Rates Remain High
Impact of War on Monetary Policy: The ongoing conflict with Iran has influenced the Federal Reserve's decision-making, leading to a halt in rate cuts.
Rising Oil Prices: The war has contributed to an increase in oil prices, affecting economic conditions and investor sentiment.
Investment Strategy: Investors are advised to seek stocks that can perform well even in a stable interest rate environment.
Market Outlook: The current economic climate suggests a need for strategic investment choices amidst geopolitical tensions and fluctuating oil prices.
See More
Declining Oil Prices Boost Advance Auto Parts Stock
- Stock Surge: Advance Auto Parts shares rose by 7.4% amid a significant drop in oil and gasoline prices, indicating growing market confidence in the company's turnaround plan, especially following President Trump's hints at a potential resolution to the Gulf conflict.
- Restructuring Progress: The company is executing a restructuring plan that includes closing underperforming stores and focusing on leadership geographies, with expectations to increase adjusted operating margins from 2.5% in 2025 to 3.8%-4.5% by 2026, which will enhance overall profitability.
- Impact of Gas Prices: The decline in gasoline prices not only reduces driving costs but may also lead to fewer accidents and less vehicle wear, positively impacting auto parts retailers, and the stock's rise reflects optimistic market expectations for Advance Auto Parts' future performance.
- Market Dynamics: Despite ongoing conflicts in the Gulf and Iran's denial of negotiations with the U.S., the market is focusing on Trump's dialogue, and the stock's increase demonstrates investor confidence in Advance Auto Parts' ability to remain competitive in an uncertain environment.
See More
Advance Auto Parts Shares Rise 7.4% Amid Oil Price Correction
- Stock Price Surge: Advance Auto Parts shares rose by 7.4% today as the Trump administration hinted at a potential resolution to ongoing conflicts, reflecting market optimism in response to falling oil and gasoline prices.
- Impact of Gas Prices: High gasoline prices discourage driving, leading to fewer accidents and reduced vehicle wear, which negatively impacts auto parts retailers; conversely, falling gas prices boost Advance Auto's stock as driving becomes more affordable.
- Restructuring Progress: The company is advancing its restructuring plan by closing underperforming stores and focusing on key geographic areas, alongside plans to open larger strategic market hub stores, enhancing its competitive positioning in the market.
- Margin Expectations: Management anticipates an increase in adjusted operating margins from 2.5% in 2025 to a range of 3.8%-4.5% by 2026, indicating potential for improved financial performance amid declining oil prices.
See More
Vulcan Materials Co Options Trading Volume Surges
- Surge in Options Volume: Vulcan Materials Co's options trading volume reached 10,541 contracts today, equivalent to approximately 1.1 million shares, indicating a robust activity level at 71.7% of its average daily trading volume of 1.5 million shares over the past month.
- High Liquidity in Puts: Notably, the $300 strike put option has seen significant activity with 5,000 contracts traded today, representing about 500,000 underlying shares, reflecting market expectations for potential price declines.
- Advance Auto Parts Options Activity: Concurrently, Advance Auto Parts recorded an options trading volume of 12,267 contracts, translating to approximately 1.2 million shares, which is 70.2% of its average daily trading volume of 1.7 million shares over the past month, indicating strong market interest.
- Active Call Options: Within Advance Auto Parts, the $50 strike call option has traded 3,835 contracts, representing around 383,500 shares, suggesting that investors are optimistic about the company's future performance.
See More
