AutoZone (NYSE:AZO) Stock Lifted to Strong-Buy by Sanford C. Bernstein

Key Points

• Sanford C. Bernstein upgraded AutoZone to “strong buy.” The broader analyst consensus remains “Moderate Buy,” with an average price target of $3,710.36, despite several firms recently lowering their targets.
• AutoZone shares opened at $2,830.07 and were down 1.6%, trading near the lower end of their 52-week range. The company reported year-over-year revenue growth of 5.6%, although quarterly revenue of $6.59 billion fell short of estimates.
• The board authorized a $1.5 billion share-repurchase program, allowing the company to buy back up to 3% of outstanding shares. Institutional investors own 92.74% of AutoZone’s stock, including a newly reported multibillion-dollar stake from BlackRock.

AutoZone (NYSE:AZO - Get Free Report) was upgraded by equities research analysts at Sanford C. Bernstein to a "strong-buy" rating in a research note issued on Tuesday, Zacks reports.

Several other research firms have also recently weighed in on AZO. UBS Group set a $3,850.00 price objective on shares of AutoZone in a research report on Wednesday, September 23rd. Guggenheim decreased their price objective on AutoZone from $4,000.00 to $3,750.00 and set a "buy" rating on the stock in a research report on Wednesday, September 23rd. Mizuho lowered their target price on AutoZone from $3,200.00 to $3,000.00 and set a "neutral" rating for the company in a research note on Wednesday, September 23rd. JPMorgan Chase & Co. cut their price target on AutoZone from $3,850.00 to $3,700.00 and set an "overweight" rating on the stock in a research note on Monday. Finally, Citigroup decreased their price target on AutoZone from $3,700.00 to $3,450.00 and set a "buy" rating on the stock in a report on Monday, September 14th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $3,710.36.

AutoZone Trading Down 1.6%

AZO opened at $2,830.07 on Tuesday. The stock has a market capitalization of $46.21 billion, a PE ratio of 18.52, a PEG ratio of 1.32 and a beta of 0.34. AutoZone has a 1-year low of $2,764.88 and a 1-year high of $4,293.03. The firm has a 50-day moving average price of $2,969.94 and a two-hundred day moving average price of $3,170.39.

AutoZone (NYSE:AZO - Get Free Report) last announced its earnings results on Tuesday, September 22nd. The company reported $56.05 earnings per share for the quarter, topping analysts' consensus estimates of $0.54 by $55.51. AutoZone had a net margin of 12.65% and a negative return on equity of 90.08%. The company had revenue of $6.59 billion during the quarter, compared to the consensus estimate of $6.70 billion. During the same period in the previous year, the firm posted $48.71 earnings per share. The company's revenue was up 5.6% on a year-over-year basis. On average, research analysts predict that AutoZone will post 173.47 EPS for the current year.

AutoZone declared that its Board of Directors has initiated a share repurchase plan on Tuesday, June 16th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 3% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other AutoZone news, VP Dennis LeRiche sold 1,455 shares of the company's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $3,100.00, for a total transaction of $4,510,500.00. Following the completion of the sale, the vice president owned 441 shares in the company, valued at approximately $1,367,100. The trade was a 76.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On AutoZone

Institutional investors have recently made changes to their positions in the stock. Benchmark Investment Advisors LLC bought a new position in AutoZone during the 2nd quarter worth approximately $713,000. CYBER HORNET ETFs LLC grew its holdings in AutoZone by 33,193.5% during the second quarter. CYBER HORNET ETFs LLC now owns 15,315 shares of the company's stock valued at $48,946,000 after purchasing an additional 15,269 shares during the period. Nykredit A S bought a new stake in AutoZone in the second quarter valued at approximately $27,287,000. Bank of America Corp DE bought a new stake in AutoZone in the second quarter valued at approximately $233,576,000. Finally, BlackRock Inc. acquired a new stake in AutoZone in the second quarter worth $3,938,566,000. 92.74% of the stock is owned by institutional investors and hedge funds.

AutoZone Company Profile

AutoZone, Inc is a specialty retailer of automotive replacement parts, accessories and maintenance products. The company serves do-it-yourself customers as well as professional automotive repair shops, offering products such as batteries, brakes, filters, engine components, tools, fluids and other vehicle parts.

In addition to its retail stores, AutoZone provides commercial sales and delivery services for professional repair businesses. The company also operates ALLDATA, which offers automotive diagnostic, repair and shop-management software and information services to repair professionals.

Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates primarily in the United States, with additional stores and operations in Mexico and Brazil.

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