Advance Auto stock (ticker: AAP) has faced significant challenges in recent years, with its value plummeting by 60% in 2023 alone following a 39% decline in 2022. The company has experienced a series of setbacks, including disappointing quarterly reports, a dividend reduction, the impending retirement of its CEO, the removal of its finance chief, a lowered credit rating, and its exclusion from the S&P 500 index.
Despite these difficulties, Director Eugene I. Lee demonstrated his confidence in the company by purchasing a substantial block of shares on the open market. On September 13, Lee bought 8,670 Advance Auto shares at an average price of $57.65 each, amounting to a $500,000 investment. This transaction was conducted through a family trust that now owns a total of 19,430 Advance Auto shares. Additionally, Lee holds another 68,838 shares in his personal account.
Lee, who joined Advance Auto's board in November 2015, is currently serving as the interim executive chair while Tom Greco, the president and CEO, prepares to retire at the end of this year. Prior to his involvement with Advance Auto, Lee held positions as chairman of Darden Restaurants (DRI) and as a former president and CEO.
It is evident that despite the challenges faced by Advance Auto, Director Eugene I. Lee remains committed to the company's success and has displayed his confidence by investing a significant amount in its shares.