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Ireland-based Aptiv PLC (APTV) engages in the design, manufacture, and sale of vehicle components. It provides electronic and safety technology solutions to the automotive and commercial vehicle markets. With a market cap of $18.7 billion, Aptiv operates through the Signal & Power Solutions and Advanced Safety & User Experience segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Aptiv fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the auto parts industry. Its operations span the Americas, Europe, the Middle East, Africa and Asia Pacific.
Aptiv touched its 52-week high of $104.72 on Sep. 20, 2023, and is currently trading 32.9% below that peak. APTV has declined 1% over the past three months, lagging behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 6.4% gains during the same time frame.
Over the longer term, APTV has substantially underperformed XLY. APTV has declined 31.5% over the past 52 weeks and 21.7% in 2024 compared to XLY’s 12.4% gains over the past year and 8% returns on a YTD basis.
To confirm the bearish trend, APTV has consistently traded below its 200-day moving average and mostly below its 50-day moving average with slight fluctuations over the past year.
Shares of Aptiv soared 5.4% after its Q2 earnings release on Aug. 1. The company reported a 2.9% year-over-year decline in net sales to $5.1 billion, falling short of Wall Street’s topline expectations. However, its adjusted EPS grew by 26.4% to $1.58, exceeding the consensus estimates by 15.3%.
Its net income to common shareholders surged by a massive 309.6%, reaching $938 million primarily due to the $641 million gain from ownership restructuring transactions of Motional AD LLC with Hyundai Motor Group. Despite the initial uptick in stock prices, APTV dipped 4.8% in the next trading session.
Aptiv’s competitor, Autoliv, Inc. (ALV), has outperformed APTV over the past year. ALV experienced a marginal decline over the past year and dipped 11.9% in 2024.
Among the 21 analysts covering the APTV stock, the consensus rating is a “Moderate Buy.” The mean price target of $92.09 represents a potential upside of 31.1% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
