BlackRock Cuts Stake in Advance Auto Parts (AAP)

Fintel reports that BlackRock
has filed a 13G/A form
with the SEC disclosing ownership of
4.12MM
shares of Advance Auto Parts, Inc. (AAP).

This represents 7.0% of the company.

In their previous filing dated February 3, 2022
they reported 4.59MM shares and 7.40% of the company,
a decrease in shares of 10.21%
and
a decrease in total ownership of
0.40% (calculated as current – previous percent ownership).

Analyst Price Forecast Suggests 11.08% Upside

As of February 1, 2023,
the average one-year price target for Advance Auto Parts is $169.15.
The forecasts range from a low of $121.20 to a high of $220.50.
The average price target represents an increase of 11.08% from its latest reported closing price of $152.28.

The projected annual revenue for Advance Auto Parts
is $11,502MM, an increase of 3.83%.

The projected annual EPS
is $13.56, an increase of 73.82%.

Fund Sentiment

There are 1321 funds or institutions reporting positions in Advance Auto Parts.
This is a decrease
of
48
owner(s) or 3.51%.

Average portfolio weight of all funds dedicated to US:AAP is 0.2321%,
a decrease
of 5.8802%.

Total shares owned by institutions decreased
in the last three months by 2.82% to 69,257K shares.

What are large shareholders doing?

Jpmorgan Chase &
holds 3,247,267 shares

representing 5.52% ownership of the company.

In it’s prior filing, the firm reported owning 2,636,189 shares, representing
an increase
of 18.82%.

The firm

increased

its portfolio allocation in AAP by 14.69% over the last quarter.

Clearbridge Investments
holds 3,043,636 shares

representing 5.18% ownership of the company.

In it’s prior filing, the firm reported owning 3,183,593 shares, representing
a decrease
of 4.60%.

The firm

decreased

its portfolio allocation in AAP by 6.57% over the last quarter.

Barrow Hanley Mewhinney & Strauss
holds 2,980,111 shares

representing 5.07% ownership of the company.

In it’s prior filing, the firm reported owning 3,102,110 shares, representing
a decrease
of 4.09%.

The firm

decreased

its portfolio allocation in AAP by 5.76% over the last quarter.

HLIEX – JPMorgan Equity Income Fund Class I
holds 2,284,313 shares

representing 3.89% ownership of the company.

In it’s prior filing, the firm reported owning 1,869,799 shares, representing
an increase
of 18.15%.

The firm

increased

its portfolio allocation in AAP by 15.87% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares
holds 1,790,428 shares

representing 3.05% ownership of the company.

In it’s prior filing, the firm reported owning 1,783,836 shares, representing
an increase
of 0.37%.

The firm

decreased

its portfolio allocation in AAP by 5.50% over the last quarter.

Advance Auto Parts Declares $1.50 Dividend

Advance Auto Parts said on November 7, 2022 that its board of directors declared a regular
quarterly dividend of $1.50 per share ($6.00 annualized).
Shareholders of record as of December 15, 2022
received the payment on January 3, 2023.
Previously, the company paid $1.50 per share.

At the current share price of $152.28 / share,
the stock’s dividend yield is 3.94%.

Looking back five years and taking a sample every week, the average dividend yield has been
1.10%,
the lowest has been 0.13%,
and the highest has been 4.26%.
The standard deviation of yields is 1.19 (n=237).

The current dividend yield is
2.39 standard deviations

above
the historical average.

Additionally, the company’s dividend payout ratio is 0.74.
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 24.00%,
demonstrating that it has increased its dividend over time.

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.