Shake-Up Alert: 40 Companies Facing Activist Pressure

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16. Third Point at Advance Auto Parts Inc (NYSE:AAP)

Stock Return: -12.69%

S&P 500 Return: 8.39%

Investment date: 12/04/2023

Number of hedge funds holding stakes: 39

Raleigh, North Carolina-based Advance Auto Parts Inc (NYSE:AAP) is a consumer cyclical company that offers automotive replacement parts, accessories, batteries, and maintenance items. After dropping by 57% in 2023, the stock is subject to heightened activist pressure from Third Point and Saddle Point Management.

The activist pressure has already resulted in the company appointing three new board members with experience in automotive supply chain and merchandising. Advance Auto Parts Inc (NYSE:AAP) is also under pressure to sell Worldpay, a wholesale distributor of original equipment it bought in 2014. The activist pressure is slowly bearing fruit as the stock is up by 2.2% for the year.

As of the end of the first quarter of 2024, 39 hedge funds out of 920 tracked by the Insider Monkey database held stakes in Advance Auto Parts Inc (NYSE:AAP).

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