Advance Auto Parts (AAP) Options Trading Volume Hits 10,578 Contracts, 54.3% of Average Daily Volume
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy AAP?
Source: NASDAQ.COM
- Active Options Trading: Advance Auto Parts (AAP) saw options trading volume of 10,578 contracts today, representing approximately 1.1 million shares, which is about 54.3% of its average daily trading volume of 1.9 million shares over the past month, indicating heightened market interest in AAP stock.
- High Volume Strike: The $44 strike call option for AAP was particularly active, with 4,395 contracts traded today, equating to approximately 439,500 underlying shares, suggesting that investors are increasingly optimistic about AAP's future stock price appreciation.
- Rambus Options Activity: Concurrently, Rambus Inc. (RMBS) also exhibited strong options trading with a volume of 8,194 contracts, representing around 819,400 shares, which is about 54% of its average daily trading volume of 1.5 million shares over the past month, reflecting ongoing market interest in RMBS stock.
- Bullish Call Options: The $125 strike call option for RMBS saw a trading volume of 863 contracts today, approximately 86,300 underlying shares, indicating a bullish sentiment among investors regarding RMBS's future performance, which could drive its stock price higher.
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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: 56.740
Low
40.00
Averages
51.55
High
65.00
Current: 56.740
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 Margins Stabilizing
- Margins Stabilizing: Advance Auto Parts is seeing stabilization in its margins, even though visibility on achieving a 7% operating margin remains limited, indicating some progress in improving financial health.
- Market Response: Despite challenges, the market response to Advance Auto Parts has been relatively positive, with investors cautiously optimistic about its future profitability, which may influence stock performance.
- Operational Efficiency Improvements: The company is implementing measures to enhance operational efficiency to address market competition and cost pressures, thereby laying the groundwork for achieving higher margins.
- Strategic Adjustments: Advance Auto Parts may need to make strategic adjustments to adapt to the changing market environment, ensuring it can meet higher profitability targets in the future.
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Three Unexpected Earnings Surprises May Indicate a New Trend
Earnings Season Overview: More than 74% of S&P 500 companies reporting so far have exceeded analysts' EPS estimates, while 73% have surpassed revenue expectations, indicating a generally positive earnings season despite flat aggregate growth rates.
Applied Materials Performance: Applied Materials (AMAT) has shown strong results, with shares rising 12% after reporting fiscal Q1 2026 results that beat expectations by 7%, driven by robust guidance and equipment demand.
Rivian's Challenges: Rivian Automotive (RIVN) faced a 25% decline in year-over-year revenue growth due to the expiration of EV tax credits, although sales figures still exceeded expectations, and the company narrowed its losses.
Market Recommendations: Analysts have identified five stocks that they recommend buying now, suggesting these companies are well-positioned for future growth despite broader market trends.
See More
Advance Auto Parts Reports Strong Q4 Earnings Exceeding Expectations
- Earnings Beat: Advance Auto Parts reported adjusted earnings per share of $0.86 for Q4, significantly surpassing the analyst consensus estimate of $0.42, indicating strong operational performance and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $1.973 billion, exceeding the Street's expectation of $1.952 billion, demonstrating robust sales momentum in the competitive auto parts market.
- Future Guidance: Advance Auto expects fiscal 2026 adjusted earnings per share to range from $2.40 to $3.10, which, while below the analysts' estimate of $2.66, still reflects confidence in its future profitability.
- Analyst Rating Changes: Following the earnings announcement, several analysts adjusted their price targets for Advance Auto Parts, with BMO raising its target from $55 to $60 and RBC increasing its target from $57 to $63, indicating a positive outlook on the company's prospects.
See More
Advance Auto Parts Q4 2025 Earnings Call Insights
- Sales Recovery: Advance Auto Parts reported a 1.1% increase in comparable sales for Q4 after three years of declines, indicating initial success in its sales strategy transformation, with expectations for 2026 comparable sales growth accelerating to the 1% to 2% range, reflecting a gradual recovery in market demand.
- Operating Margin Improvement: The adjusted operating income margin expanded by over 200 basis points from near breakeven levels, reaching 2.5% at the end of 2025, with plans to further increase it to a range of 3.8% to 4.5% in 2026, significantly enhancing the company's profitability and investment appeal.
- Strategic Restructuring Measures: The company plans to close over 500 underperforming stores and add 100,000 new SKUs to enhance product variety and availability, which is expected to optimize operational efficiency and improve customer experience, thereby driving future sales growth.
- Cash Flow Outlook: Despite a negative free cash flow of $298 million in 2025, the company anticipates a return to approximately $100 million in 2026, reflecting efforts in cost optimization and operational efficiency, which bolsters investor confidence in future financial health.
See More
U.S. Stocks Decline in Morning Trade as Inflation Rate Eases
- Market Performance: U.S. stocks traded lower this morning, with the Dow Jones index falling approximately 0.1% to 49,387.55, indicating a cautious market sentiment regarding economic outlook.
- Sector Dynamics: Utility stocks gained 1.5%, while communication services stocks fell by 0.6%, reflecting a divergence in market performance across sectors that could influence investors' asset allocation strategies.
- Earnings Highlights: Advance Auto Parts (NYSE:AAP) reported better-than-expected fourth-quarter results, with earnings per share of $0.86 surpassing the analyst consensus of $0.42, and sales reaching $1.973 billion, demonstrating the company's strong performance in a competitive market.
- Economic Data: The annual inflation rate eased to 2.4% in January, the lowest level since May, down from 2.7% in the previous month, which may impact the Federal Reserve's monetary policy decisions.
See More
Advance Auto Parts Declares Quarterly Dividend of $0.25
- Quarterly Dividend Announcement: Advance Auto Parts has declared a quarterly dividend of $0.25 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 1.64% reflects the company's appeal in the current market environment, potentially increasing investor interest in its stock and supporting price stability.
- Payment Schedule: The dividend is payable on April 24, with a record date of April 10 and an ex-dividend date also on April 10, providing investors with clear cash flow expectations that may enhance market confidence.
- Financial Health Indicator: The dividend announcement, coupled with Advance Auto Parts' recent positive comparable sales growth, suggests that the company is gradually restoring financial health during its turnaround process, which could further bolster investor optimism regarding its future growth prospects.
See More
Advance Auto Parts Margins Stabilizing
- Margins Stabilizing: Advance Auto Parts is seeing stabilization in its margins, even though visibility on achieving a 7% operating margin remains limited, indicating some progress in improving financial health.
- Market Response: Despite challenges, the market response to Advance Auto Parts has been relatively positive, with investors cautiously optimistic about its future profitability, which may influence stock performance.
- Operational Efficiency Improvements: The company is implementing measures to enhance operational efficiency to address market competition and cost pressures, thereby laying the groundwork for achieving higher margins.
- Strategic Adjustments: Advance Auto Parts may need to make strategic adjustments to adapt to the changing market environment, ensuring it can meet higher profitability targets in the future.
See More
Three Unexpected Earnings Surprises May Indicate a New Trend
Earnings Season Overview: More than 74% of S&P 500 companies reporting so far have exceeded analysts' EPS estimates, while 73% have surpassed revenue expectations, indicating a generally positive earnings season despite flat aggregate growth rates.
Applied Materials Performance: Applied Materials (AMAT) has shown strong results, with shares rising 12% after reporting fiscal Q1 2026 results that beat expectations by 7%, driven by robust guidance and equipment demand.
Rivian's Challenges: Rivian Automotive (RIVN) faced a 25% decline in year-over-year revenue growth due to the expiration of EV tax credits, although sales figures still exceeded expectations, and the company narrowed its losses.
Market Recommendations: Analysts have identified five stocks that they recommend buying now, suggesting these companies are well-positioned for future growth despite broader market trends.
See More
Advance Auto Parts Reports Strong Q4 Earnings Exceeding Expectations
- Earnings Beat: Advance Auto Parts reported adjusted earnings per share of $0.86 for Q4, significantly surpassing the analyst consensus estimate of $0.42, indicating strong operational performance and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $1.973 billion, exceeding the Street's expectation of $1.952 billion, demonstrating robust sales momentum in the competitive auto parts market.
- Future Guidance: Advance Auto expects fiscal 2026 adjusted earnings per share to range from $2.40 to $3.10, which, while below the analysts' estimate of $2.66, still reflects confidence in its future profitability.
- Analyst Rating Changes: Following the earnings announcement, several analysts adjusted their price targets for Advance Auto Parts, with BMO raising its target from $55 to $60 and RBC increasing its target from $57 to $63, indicating a positive outlook on the company's prospects.
See More
Advance Auto Parts Q4 2025 Earnings Call Insights
- Sales Recovery: Advance Auto Parts reported a 1.1% increase in comparable sales for Q4 after three years of declines, indicating initial success in its sales strategy transformation, with expectations for 2026 comparable sales growth accelerating to the 1% to 2% range, reflecting a gradual recovery in market demand.
- Operating Margin Improvement: The adjusted operating income margin expanded by over 200 basis points from near breakeven levels, reaching 2.5% at the end of 2025, with plans to further increase it to a range of 3.8% to 4.5% in 2026, significantly enhancing the company's profitability and investment appeal.
- Strategic Restructuring Measures: The company plans to close over 500 underperforming stores and add 100,000 new SKUs to enhance product variety and availability, which is expected to optimize operational efficiency and improve customer experience, thereby driving future sales growth.
- Cash Flow Outlook: Despite a negative free cash flow of $298 million in 2025, the company anticipates a return to approximately $100 million in 2026, reflecting efforts in cost optimization and operational efficiency, which bolsters investor confidence in future financial health.
See More
U.S. Stocks Decline in Morning Trade as Inflation Rate Eases
- Market Performance: U.S. stocks traded lower this morning, with the Dow Jones index falling approximately 0.1% to 49,387.55, indicating a cautious market sentiment regarding economic outlook.
- Sector Dynamics: Utility stocks gained 1.5%, while communication services stocks fell by 0.6%, reflecting a divergence in market performance across sectors that could influence investors' asset allocation strategies.
- Earnings Highlights: Advance Auto Parts (NYSE:AAP) reported better-than-expected fourth-quarter results, with earnings per share of $0.86 surpassing the analyst consensus of $0.42, and sales reaching $1.973 billion, demonstrating the company's strong performance in a competitive market.
- Economic Data: The annual inflation rate eased to 2.4% in January, the lowest level since May, down from 2.7% in the previous month, which may impact the Federal Reserve's monetary policy decisions.
See More
Advance Auto Parts Declares Quarterly Dividend of $0.25
- Quarterly Dividend Announcement: Advance Auto Parts has declared a quarterly dividend of $0.25 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 1.64% reflects the company's appeal in the current market environment, potentially increasing investor interest in its stock and supporting price stability.
- Payment Schedule: The dividend is payable on April 24, with a record date of April 10 and an ex-dividend date also on April 10, providing investors with clear cash flow expectations that may enhance market confidence.
- Financial Health Indicator: The dividend announcement, coupled with Advance Auto Parts' recent positive comparable sales growth, suggests that the company is gradually restoring financial health during its turnaround process, which could further bolster investor optimism regarding its future growth prospects.
See More
