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

Advance Auto Parts, Inc. (NYSE:AAP) declared a quarterly dividend on Thursday, May 21st. Shareholders of record on Friday, July 10th will be given a dividend of 0.25 per share on Friday, July 24th. This represents a c) dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Friday, July 10th.

Advance Auto Parts has a dividend payout ratio of 32.3% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Advance Auto Parts to earn $3.90 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 25.6%.

Advance Auto Parts Stock Performance

Advance Auto Parts stock traded up $7.35 during mid-day trading on Thursday, reaching $58.59. The company’s stock had a trading volume of 8,647,619 shares, compared to its average volume of 1,838,477. The firm has a market cap of $3.53 billion, a price-to-earnings ratio of 80.26, a PEG ratio of 0.87 and a beta of 1.06. The business has a 50 day moving average price of $53.69 and a 200-day moving average price of $50.29. The company has a current ratio of 1.75, a quick ratio of 0.87 and a debt-to-equity ratio of 1.55. Advance Auto Parts has a twelve month low of $37.89 and a twelve month high of $70.00.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings data on Thursday, May 21st. The company reported $0.77 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.38. The firm had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.57 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The firm’s revenue was up 1.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.40 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. Sell-side analysts predict that Advance Auto Parts will post 2.77 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have issued reports on AAP. JPMorgan Chase & Co. cut their target price on Advance Auto Parts from $64.00 to $59.00 and set a “neutral” rating on the stock in a research note on Friday, May 15th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Advance Auto Parts in a research note on Friday, May 15th. Truist Financial set a $62.00 target price on Advance Auto Parts in a research note on Thursday. Citigroup boosted their price target on shares of Advance Auto Parts from $55.00 to $57.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 12th. Finally, TD Cowen reiterated a “hold” rating on shares of Advance Auto Parts in a research report on Tuesday, February 17th. One investment analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $53.09.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.