Form 4: Advance Auto Parts Director Gregory Smith Acquires Over 3,300 Shares Through Deferred Stock Unit Plan

Gregory L. Smith, a Director at Advance Auto Parts Inc. (AAP), has acquired 3,326.613 shares of common stock through a deferred stock unit award, increasing his beneficial ownership.

Summary

• Gregory L. Smith, a Director of Advance Auto Parts Inc. (AAP), acquired 3,326.613 shares of common stock on May 27, 2025.
• The acquisition was made at a price of $49.6 per share.
• These shares were awarded as deferred stock units (DSUs) under the Advance Auto Parts, Inc. Deferred Stock Unit Plan for Non-Employee Directors and Selected Executives.
• The DSUs will convert to shares of common stock at the time of distribution.
• Following this transaction, Gregory L. Smith beneficially owns 6,349.14 shares of Advance Auto Parts common stock.
• The acquired shares are scheduled to vest on May 27, 2026.
• Distribution of these shares will occur pro-rata if board service ends prior to the vesting date, or at the end of the director's board service otherwise.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive as a director's acquisition of shares, even through a compensation plan, generally indicates alignment of interests with shareholders and confidence in the company's future.

Positives

• The acquisition of shares by a director aligns management's interests with those of shareholders, potentially indicating confidence in the company's future performance.
• The transaction is part of a structured deferred stock unit plan, which is a common form of executive and director compensation designed to retain talent and incentivize long-term value creation.

Future Outlook

The acquired deferred stock units are set to vest on May 27, 2026, and will be distributed either pro-rata if board service concludes before vesting, or upon the termination of the director's board service.

Industry Context

This Form 4 filing reports an individual insider transaction, which is a routine disclosure for publicly traded companies. It does not provide broader industry trends or competitive analysis, but rather details a specific compensation event for a director within the automotive aftermarket parts industry.

Corporate Governance

Related Party Transactions

• The acquisition of shares by Director Gregory L. Smith through a company-sponsored deferred stock unit plan is considered an insider transaction, aligning director compensation with company performance.

Stakeholder Impact

• Shareholders: The transaction increases director ownership, potentially signaling confidence and aligning the director's financial interests with shareholder value creation.
• Employees: While not directly impacted, the plan is also for 'Selected Executives,' indicating a broader strategy to incentivize key personnel.

Next Steps

• Vesting of the deferred stock units on May 27, 2026.
• Distribution of the shares to Gregory L. Smith upon vesting or termination of board service.

Key Dates

Keywords

Advance Auto Parts, AAP, SEC Form 4, Insider Transaction, Stock Acquisition, Director Compensation, Deferred Stock Units, Equity Award, Corporate Governance