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

Key Points

• Advance Auto Parts, Inc. has announced a quarterly dividend of $0.25 per share, with stockholders of record set to receive it on October 24th.
• The company reported earnings per share of $0.69, exceeding analysts' estimates of $0.59, despite facing a negative net margin of 3.74%.
• Institutional investors own approximately 88.75% of Advance Auto Parts, with significant increases in their positions reported during the second quarter.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) announced a quarterly dividend on Thursday, August 14th, RTT News reports. Stockholders of record on Friday, October 10th will be given a dividend of 0.25 per share on Friday, October 24th. This represents a c) dividend on an annualized basis and a dividend yield of 1.6%.

Advance Auto Parts has a payout ratio of 32.3% meaning 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 Trading Up 4.7%

Shares of AAP opened at $61.87 on Thursday. The stock's fifty day simple moving average is $54.97 and its 200-day simple moving average is $44.58. The firm has a market capitalization of $3.71 billion, a PE ratio of -10.54 and a beta of 1.05. Advance Auto Parts has a 12-month low of $28.89 and a 12-month high of $70.00. The company has a quick ratio of 0.49, a current ratio of 1.27 and a debt-to-equity ratio of 0.68.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its earnings results on Thursday, August 14th. The company reported $0.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.59 by $0.10. Advance Auto Parts had a negative net margin of 3.74% and a negative return on equity of 1.76%. As a group, research analysts predict that Advance Auto Parts will post -0.46 earnings per share for the current year.

Insider Activity at Advance Auto Parts

In related news, SVP Jason Hand sold 948 shares of the company's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $48.52, for a total value of $45,996.96. Following the completion of the transaction, the senior vice president directly owned 9,876 shares of the company's stock, valued at approximately $479,183.52. This represents a 8.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.35% of the stock is currently owned by insiders.

Institutional Trading of Advance Auto Parts

Institutional investors have recently made changes to their positions in the business. California Public Employees Retirement System increased its position in shares of Advance Auto Parts by 6.8% in the second quarter. California Public Employees Retirement System now owns 74,025 shares of the company's stock valued at $3,441,000 after acquiring an additional 4,732 shares during the last quarter. Cerity Partners LLC bought a new position in Advance Auto Parts in the second quarter valued at approximately $338,000. Federated Hermes Inc. increased its position in shares of Advance Auto Parts by 75.7% during the 2nd quarter. Federated Hermes Inc. now owns 2,387,325 shares of the company's stock worth $110,987,000 after purchasing an additional 1,028,561 shares during the last quarter. Gabelli Funds LLC raised its stake in shares of Advance Auto Parts by 193.0% during the 2nd quarter. Gabelli Funds LLC now owns 66,218 shares of the company's stock worth $3,078,000 after purchasing an additional 43,618 shares in the last quarter. Finally, Gamco Investors INC. ET AL raised its stake in shares of Advance Auto Parts by 24.8% during the 2nd quarter. Gamco Investors INC. ET AL now owns 564,225 shares of the company's stock worth $26,231,000 after purchasing an additional 112,300 shares in the last quarter. 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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