Advance Auto Parts, Inc. (NYSE:AAP) Announces $0.25 Quarterly Dividend

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) announced a quarterly dividend on Friday, May 23rd, Wall Street Journal reports. Investors of record on Friday, July 11th will be paid a dividend of 0.25 per share on Friday, July 25th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.06%. The ex-dividend date of this dividend is Friday, July 11th.

Advance Auto Parts has decreased its dividend by an average of 32.5% annually over the last three years and has increased its dividend every year for the last 1 years. Advance Auto Parts has a dividend payout ratio of 33.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Advance Auto Parts to earn $1.57 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 63.7%.

Advance Auto Parts Stock Down 1.3%

Shares of NYSE AAP traded down $0.62 during trading hours on Friday, hitting $48.55. 7,415,473 shares of the stock were exchanged, compared to its average volume of 2,427,620. The company has a market cap of $2.90 billion, a PE ratio of 66.69, a PEG ratio of 1.98 and a beta of 0.93. Advance Auto Parts has a 12 month low of $28.89 and a 12 month high of $71.62. The company has a quick ratio of 0.62, a current ratio of 1.34 and a debt-to-equity ratio of 0.69. The firm has a fifty day moving average price of $34.41 and a 200-day moving average price of $40.30.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its quarterly earnings results on Thursday, May 22nd. The company reported ($0.22) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.81) by $0.59. The business had revenue of $2.58 billion for the quarter, compared to the consensus estimate of $2.51 billion. Advance Auto Parts had a return on equity of 1.82% and a net margin of 0.41%. The business's quarterly revenue was down 24.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.67 earnings per share. On average, sell-side analysts expect that Advance Auto Parts will post -0.46 EPS for the current year.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on AAP. Morgan Stanley raised their price target on Advance Auto Parts from $45.00 to $48.00 and gave the stock an "equal weight" rating in a report on Friday. Citigroup dropped their target price on shares of Advance Auto Parts from $47.00 to $40.00 and set a "neutral" rating on the stock in a research report on Thursday, February 27th. Wells Fargo & Company set a $35.00 price objective on shares of Advance Auto Parts and gave the stock an "equal weight" rating in a research note on Monday. BMO Capital Markets upped their target price on Advance Auto Parts from $40.00 to $50.00 and gave the company a "market perform" rating in a research report on Friday. Finally, Truist Financial reduced their target price on Advance Auto Parts from $39.00 to $34.00 and set a "hold" rating for the company in a research note on Thursday, February 27th. One equities research analyst has rated the stock with a sell rating, seventeen have assigned a hold rating and one has assigned a buy rating to the company. According to MarketBeat, Advance Auto Parts presently has a consensus rating of "Hold" and a consensus target price of $45.71.

Insider Activity at Advance Auto Parts

In other Advance Auto Parts news, Director Eugene I. Lee, Jr. acquired 14,640 shares of the business's stock in a transaction dated Thursday, March 6th. The stock was acquired at an average cost of $34.15 per share, for a total transaction of $499,956.00. Following the completion of the transaction, the director now directly owns 34,070 shares of the company's stock, valued at $1,163,490.50. This represents a 75.35% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Shane M. Okelly bought 1,500 shares of Advance Auto Parts stock in a transaction dated Tuesday, March 11th. The shares were acquired at an average cost of $36.79 per share, with a total value of $55,185.00. Following the completion of the purchase, the chief executive officer now owns 183,121 shares in the company, valued at approximately $6,737,021.59. This trade represents a 0.83% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.67% of the stock is owned by company insiders.

Institutional Investors Weigh In On Advance Auto Parts

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Advance Auto Parts by 14.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company's stock worth $7,096,000 after acquiring an additional 23,018 shares during the period. Royal Bank of Canada increased its stake in shares of Advance Auto Parts by 107.2% during the first quarter. Royal Bank of Canada now owns 79,558 shares of the company's stock worth $3,119,000 after purchasing an additional 41,157 shares in the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of Advance Auto Parts by 327.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company's stock worth $14,230,000 after purchasing an additional 278,066 shares during the last quarter. Hedge funds and other institutional investors own 88.75% of the company's stock.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts.

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