Advance Auto Parts, Inc. (AAP) to Issue Quarterly Dividend of $0.25 on January 24th

Advance Auto Parts, Inc. (NYSE:AAP) announced a quarterly dividend on Tuesday, October 29th,Wall Street Journal reports. Investors of record on Friday, January 10th will be paid a dividend of 0.25 per share on Friday, January 24th. This represents a $1.00 annualized dividend and a dividend yield of 2.17%. The ex-dividend date is Friday, January 10th.

Advance Auto Parts has decreased its dividend payment by an average of 32.5% annually over the last three years. Advance Auto Parts has a payout ratio of 32.4% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Advance Auto Parts to earn $1.56 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 64.1%.

Advance Auto Parts Price Performance

Shares of AAP opened at $46.07 on Wednesday. The company has a market capitalization of $2.75 billion, a P/E ratio of 63.11 and a beta of 1.16. 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 50 day moving average of $42.50 and a 200 day moving average of $47.50. Advance Auto Parts has a twelve month low of $35.59 and a twelve month high of $88.56.

Advance Auto Parts (NYSE:AAP) last posted its earnings results on Thursday, November 14th. The company reported ($0.04) EPS for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.53). Advance Auto Parts had a return on equity of 1.82% and a net margin of 0.41%. The company had revenue of $2.15 billion during the quarter, compared to the consensus estimate of $2.62 billion. During the same period last year, the firm posted ($0.82) EPS. The company’s revenue for the quarter was down 3.2% on a year-over-year basis. As a group, equities research analysts anticipate that Advance Auto Parts will post -0.54 earnings per share for the current fiscal year.

Insider Buying and Selling at Advance Auto Parts

In other Advance Auto Parts news, EVP Tammy M. Finley sold 1,276 shares of Advance Auto Parts stock in a transaction on Thursday, December 5th. The shares were sold at an average price of $44.06, for a total value of $56,220.56. Following the sale, the executive vice president now directly owns 24,266 shares in the company, valued at approximately $1,069,159.96. The trade was a 5.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 0.35% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. Truist Financial cut their target price on shares of Advance Auto Parts from $41.00 to $39.00 and set a “hold” rating for the company in a research report on Friday, November 15th. The Goldman Sachs Group dropped their price target on shares of Advance Auto Parts from $60.00 to $43.00 and set a “neutral” rating on the stock in a research note on Friday, November 15th. Royal Bank of Canada dropped their price target on shares of Advance Auto Parts from $52.00 to $46.00 and set a “sector perform” rating on the stock in a research note on Monday, November 11th. DA Davidson reiterated a “neutral” rating and set a $45.00 price target on shares of Advance Auto Parts in a research note on Friday, November 15th. Finally, BMO Capital Markets initiated coverage on shares of Advance Auto Parts in a research note on Friday, December 13th. They set a “market perform” rating and a $45.00 price target on the stock. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $48.73.

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.