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

Advance Auto Parts, Inc. (NYSE:AAP) declared a quarterly dividend on Wednesday, November 15th, RTT News reports. Shareholders of record on Friday, January 12th will be paid a dividend of 0.25 per share on Friday, January 26th. This represents a $1.00 annualized dividend and a yield of 1.81%.

Advance Auto Parts has increased its dividend payment by an average of 192.4% annually over the last three years. Advance Auto Parts has a payout ratio of 18.6% meaning its dividend is sufficiently covered by earnings. Analysts expect Advance Auto Parts to earn $5.44 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 18.4%.

Advance Auto Parts Stock Down 5.4 %

Shares of AAP opened at $55.22 on Wednesday. The company has a market capitalization of $3.28 billion, a PE ratio of 10.10, a PEG ratio of 1.06 and a beta of 1.14. Advance Auto Parts has a 12 month low of $47.73 and a 12 month high of $161.73. The stock’s 50-day moving average price is $55.19 and its two-hundred day moving average price is $72.23. The company has a current ratio of 1.26, a quick ratio of 0.25 and a debt-to-equity ratio of 0.66.

Advance Auto Parts (NYSE:AAP) last announced its earnings results on Wednesday, November 15th. The company reported ($0.82) EPS for the quarter, missing the consensus estimate of $1.44 by ($2.26). The company had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.68 billion. Advance Auto Parts had a return on equity of 17.53% and a net margin of 3.08%. The firm’s quarterly revenue was up 2.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.84 earnings per share. On average, analysts anticipate that Advance Auto Parts will post 4.63 EPS for the current year.

Analyst Ratings Changes

AAP has been the subject of several research analyst reports. Truist Financial lowered their price objective on Advance Auto Parts from $65.00 to $55.00 and set a “hold” rating for the company in a research report on Thursday, October 5th. Royal Bank of Canada lowered their price objective on Advance Auto Parts from $84.00 to $70.00 and set a “sector perform” rating for the company in a research report on Thursday, August 24th. Bank of America decreased their target price on Advance Auto Parts from $75.00 to $60.00 in a research report on Thursday, September 28th. Evercore ISI decreased their target price on Advance Auto Parts from $80.00 to $75.00 and set an “in-line” rating for the company in a research report on Friday, September 8th. Finally, Wedbush reaffirmed a “neutral” rating and issued a $80.00 target price on shares of Advance Auto Parts in a research report on Thursday, August 24th. One analyst has rated the stock with a sell rating, twenty-one have assigned a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $89.25.

Insider Buying and Selling at Advance Auto Parts

In other Advance Auto Parts news, Director Eugene I. Lee, Jr. bought 8,670 shares of the stock in a transaction on Wednesday, September 13th. The shares were acquired at an average price of $57.65 per share, with a total value of $499,825.50. Following the acquisition, the director now directly owns 19,430 shares of the company’s stock, valued at approximately $1,120,139.50. The transaction was disclosed in a document filed with the SEC, which is available through this link. Insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Cetera Advisor Networks LLC increased its holdings in shares of Advance Auto Parts by 94.8% in the second quarter. Cetera Advisor Networks LLC now owns 3,234 shares of the company’s stock worth $227,000 after purchasing an additional 1,574 shares during the period. Financial Advocates Investment Management bought a new position in shares of Advance Auto Parts in the fourth quarter worth $214,000. Enlightenment Research LLC bought a new position in shares of Advance Auto Parts in the first quarter worth $212,000. Virtu Financial LLC bought a new position in shares of Advance Auto Parts in the first quarter worth $209,000. Finally, Arrow Investment Advisors LLC increased its holdings in shares of Advance Auto Parts by 15.2% in the first quarter. Arrow Investment Advisors LLC now owns 1,648 shares of the company’s stock worth $200,000 after purchasing an additional 217 shares during the period. Institutional investors own 88.75% of the company’s stock.

About Advance Auto Parts

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.