AAP - Advance Auto Parts gains amid activist investor speculation

2023-06-13 10:26:00 ET

• Advance Auto Parts ( NYSE: AAP ) rose 4.4% amid speculation the auto parts retailer may become a target for an activist investor.
• The auto parts retailer may become vulnerable to an activist, according to an Activist Insight report that traders circulated on Tuesday. Advance Auto Parts ( AAP ) is in the 97th percentile of the Insightia Vulnerability of companies that could face an activist investor over the coming nine months.
• An activist may look to push the AAP to reduce costs and/or demand to restructure the company's debt or sell off underperforming assets to raise cash, according to the report. An activist could also urge the company to pursue a sale or merger with a larger competitor.
• The activist speculation comes after Advance Auto ( AAP ) slashed its dividend by 83% late last month, prompting several sell side analysts to downgrade the stock. The stock plunged 35% on May 31 after the dividend cut.

For further details see: