NEW YORK (TheStreet) -- Advance Auto Parts (AAP) stock is advancing 5.63% to $155.92 on heavy trading volume on Tuesday afternoon following reports that the company is exploring a sale, sources told StreetInsider.
At least one potential buyer has approached the auto parts retailer, which could be sold for up to $200 per share. The talks are in early stages and may not lead to sale, StreetInsider added.
Analysts said last week that O'Reilly Automotive (ORLY) could seek to acquire one of its competitors, which includes Advance Auto Parts, StreetInsider noted.
Last week, Advance Auto Parts' competitor Pep Boys - Manny, Moe & Jack (PBY) received a higher bid from Bridgestone Corp. (BRDCY) that values the company at about $863 million.
So far today, 5.14 million shares of Advanced Auto Parts have been traded, compared with its average daily volume of 1.04 million shares.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ADVANCE AUTO PARTS INC as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.