On March 31, 2023, Barclays upgraded their outlook for Advance Auto Parts (NYSE:AAP) from Underweight to Equal-Weight.
Analyst Price Forecast Suggests 29.50% Upside
As of March 30, 2023, the average one-year price target for Advance Auto Parts is $153.60. The forecasts range from a low of $106.05 to a high of $189.00. The average price target represents an increase of 29.50% from its latest reported closing price of $118.61.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is $11,502MM, an increase of 3.11%. The projected annual non-GAAP EPS is $13.56.
Advance Auto Parts Declares $1.50 Dividend
On February 21, 2023 the company declared a regular quarterly dividend of $1.50 per share ($6.00 annualized). Shareholders of record as of April 14, 2023 will receive the payment on April 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $118.61 / share, the stock's dividend yield is 5.06%. Looking back five years and taking a sample every week, the average dividend yield has been 1.23%, the lowest has been 0.13%, and the highest has been 5.23%. The standard deviation of yields is 1.32 (n=237).
The current dividend yield is 2.91 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.70. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 5.00%, demonstrating that it has increased its dividend over time.
What are Large Shareholders Doing?
Jpmorgan Chase & holds 3,394K shares representing 5.76% ownership of the company. No change in the last quarter.
Clearbridge Investments holds 2,555K shares representing 4.34% ownership of the company. In it's prior filing, the firm reported owning 3,044K shares, representing a decrease of 19.12%. The firm decreased its portfolio allocation in AAP by 99.92% over the last quarter.
HLIEX - JPMorgan Equity Income Fund Class I holds 2,451K shares representing 4.16% ownership of the company. In it's prior filing, the firm reported owning 2,284K shares, representing an increase of 6.78%. The firm decreased its portfolio allocation in AAP by 10.17% over the last quarter.
Barrow Hanley Mewhinney & Strauss holds 2,231K shares representing 3.79% ownership of the company. In it's prior filing, the firm reported owning 2,980K shares, representing a decrease of 33.56%. The firm decreased its portfolio allocation in AAP by 35.48% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,799K shares representing 3.06% ownership of the company. In it's prior filing, the firm reported owning 1,790K shares, representing an increase of 0.50%. The firm decreased its portfolio allocation in AAP by 12.72% over the last quarter.
What is the Fund Sentiment?
There are 1337 funds or institutions reporting positions in Advance Auto Parts. This is an increase of 4 owner(s) or 0.30% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 23.43%. Total shares owned by institutions decreased in the last three months by 4.25% to 66,828K shares. The put/call ratio of AAP is 0.83, indicating a bullish outlook.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
