Kristen Soler, an EVP at Advance Auto Parts (AAP), recently bought 1,055 shares across two consecutive days. The buys came to a total cost of $45,509, and increased her stake by 7%.
Other company insiders have been buyers recently, with a 2,650 share pickup from a director earlier in November, at a cost of $102,091. Insiders have been overwhelmingly buyers over the past two years, with over a dozen such buys, and with only one insider sale.
Overall, Advance Auto Parts insiders own 1.1% of shares.
The auto parts store chain is down 25% over the past year. Sales have been weak, and revenues are flat overall, but higher costs have weighed on earnings, sending them down 42%.
Even with that poor performance, shares trade at about 0.2 times their price-to-sales, and the stock just dropped below its book value.
Action to take: Advance Auto Parts may have bottomed out over the past few months and are starting to form a base to trend higher. Investors could see low double-digit returns in shares over the next few months.
Plus, at current prices, Advance Auto Parts pays a 1% dividend.
For traders, the February 2025 $45 calls, last trading for about $3.80, could see mid-to-high double-digit returns from a further rally higher in the months ahead.
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 company mentioned in this article.