Advance Auto Parts, Inc. to Issue Quarterly Dividend of $0.25 (NYSE:AAP)

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 yield of 1.90%. The ex-dividend date is Friday, July 11th.

Advance Auto Parts has decreased its dividend by an average of 32.5% per year 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 32.3% meaning its dividend is sufficiently covered by earnings. Equities research 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 Up 6.4%

Shares of AAP stock traded up $3.15 during mid-day trading on Wednesday, hitting $52.75. 6,726,221 shares of the stock traded hands, compared to its average volume of 2,470,454. Advance Auto Parts has a 52-week low of $28.89 and a 52-week high of $71.09. The stock has a market cap of $3.16 billion, a P/E ratio of 72.26, a P/E/G ratio of 1.98 and a beta of 0.93. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.34 and a quick ratio of 0.62. The stock's fifty day moving average is $35.41 and its two-hundred day moving average is $40.62.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its earnings results on Thursday, May 22nd. The company reported ($0.22) EPS for the quarter, beating analysts' consensus estimates of ($0.81) by $0.59. Advance Auto Parts had a net margin of 0.41% and a return on equity of 1.82%. The company had revenue of $2.58 billion during the quarter, compared to analysts' expectations of $2.51 billion. During the same quarter in the prior year, the company posted $0.67 earnings per share. Advance Auto Parts's revenue for the quarter was down 24.2% compared to the same quarter last year. Equities analysts predict that Advance Auto Parts will post -0.46 EPS for the current year.

Insider Activity at Advance Auto Parts

In other Advance Auto Parts news, CEO Shane M. Okelly purchased 1,500 shares of the business's stock in a transaction that occurred on Tuesday, March 11th. The stock was purchased at an average price of $36.79 per share, for a total transaction of $55,185.00. Following the purchase, the chief executive officer now directly 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 acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Eugene I. Lee, Jr. purchased 14,640 shares of the stock in a transaction on Thursday, March 6th. The shares were acquired at an average price of $34.15 per share, for a total transaction of $499,956.00. Following 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 position. The disclosure for this purchase can be found here. Company insiders own 0.35% of the company's stock.

Institutional Investors Weigh In On Advance Auto Parts

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

Wall Street Analyst Weigh In

Several research analysts recently issued reports on AAP shares. Citigroup reduced their target price on 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. Bank of America upped their price objective on shares of Advance Auto Parts from $33.00 to $39.00 and gave the company an "underperform" rating in a report on Friday, May 23rd. The Goldman Sachs Group reiterated a "neutral" rating and issued a $48.00 target price (up from $43.00) on shares of Advance Auto Parts in a research note on Thursday, May 22nd. Truist Financial cut their price target on shares of Advance Auto Parts from $39.00 to $34.00 and set a "hold" rating on the stock in a research note on Thursday, February 27th. Finally, BMO Capital Markets reiterated a "market perform" rating and set a $50.00 price target (up previously from $40.00) on shares of Advance Auto Parts in a research note on Friday, May 23rd. One equities research analyst has rated the stock with a sell rating, nineteen have issued a hold rating and one has issued a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $46.11.

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.