Bank of America Initiates Coverage on AutoZone (NYSE:AZO)

Key Points

• Bank of America initiated coverage of AutoZone with a “buy” rating and a $3,800 price target, implying 16.54% upside from the prior close.
• AutoZone shares traded at $3,260.73, while analysts maintain an overall “Moderate Buy” consensus with an average target price of $3,674.36.
• The company reported quarterly revenue of $6.59 billion, up 5.6% year over year, though it fell short of estimates; institutional investors own 92.74% of AutoZone’s stock.

Equities research analysts at Bank of America initiated coverage on shares of AutoZone (NYSE:AZO - Get Free Report) in a research note issued on Monday. The brokerage set a "buy" rating and a $3,800.00 price target on the stock. Bank of America's target price indicates a potential upside of 16.54% from the stock's previous close.

Other research analysts also recently issued research reports about the company. Wells Fargo & Company lowered their target price on AutoZone from $4,150.00 to $3,500.00 and set an "overweight" rating on the stock in a report on Thursday, September 10th. DA Davidson lowered their price objective on shares of AutoZone from $3,750.00 to $3,500.00 and set a "buy" rating on the stock in a research report on Wednesday, September 23rd. Barclays lowered their price objective on AutoZone from $3,637.00 to $3,400.00 and set an "overweight" rating for the company in a research report on Wednesday, September 23rd. Mizuho dropped their target price on AutoZone from $3,200.00 to $3,000.00 and set a "neutral" rating on the stock in a research report on Wednesday, September 23rd. Finally, Raymond James Financial cut their target price on AutoZone from $4,000.00 to $3,700.00 and set a "strong-buy" rating on the stock in a research note on Wednesday, September 23rd. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, AutoZone currently has an average rating of "Moderate Buy" and an average target price of $3,674.36.

AutoZone Price Performance

NYSE AZO traded up $59.97 on Monday, reaching $3,260.73. The stock had a trading volume of 14,405 shares, compared to its average volume of 258,729. AutoZone has a 1-year low of $2,730.65 and a 1-year high of $3,996.25. The firm has a fifty day moving average of $2,951.22 and a two-hundred day moving average of $3,122.08. The company has a market cap of $53.25 billion, a P/E ratio of 21.34, a price-to-earnings-growth ratio of 1.49 and a beta of 0.40.

AutoZone (NYSE:AZO - Get Free Report) last issued its earnings results on Tuesday, September 22nd. The company reported $56.05 EPS for the quarter, beating analysts' consensus estimates of $0.54 by $55.51. AutoZone had a negative return on equity of 90.08% and a net margin of 12.65%. The business had revenue of $6.59 billion during the quarter, compared to analyst estimates of $6.70 billion. During the same period in the previous year, the company posted $48.71 EPS. The firm's revenue was up 5.6% compared to the same quarter last year. Research analysts predict that AutoZone will post 170.72 EPS for the current fiscal year.

Insider Activity

In other AutoZone news, VP Dennis LeRiche sold 1,455 shares of AutoZone stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $3,100.00, for a total value of $4,510,500.00. Following the transaction, the vice president owned 441 shares in the company, valued at $1,367,100. The trade was a 76.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On AutoZone

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Lakewood Asset Management LLC boosted its position in AutoZone by 9.0% during the third quarter. Lakewood Asset Management LLC now owns 1,142 shares of the company's stock valued at $3,232,000 after buying an additional 94 shares during the period. Townsend & Associates Inc increased its position in AutoZone by 4.1% during the third quarter. Townsend & Associates Inc now owns 4,092 shares of the company's stock valued at $12,770,000 after acquiring an additional 161 shares during the last quarter. Orange Investment Advisors Inc. increased its position in AutoZone by 28.8% in the third quarter. Orange Investment Advisors Inc. now owns 2,726 shares of the company's stock worth $7,715,000 after buying an additional 609 shares in the last quarter. Argyle Capital Partners LLC purchased a new stake in shares of AutoZone during the third quarter worth about $368,000. Finally, Signaturefd LLC boosted its stake in AutoZone by 12.8% during the third quarter. Signaturefd LLC now owns 495 shares of the company's stock valued at $1,401,000 after buying an additional 56 shares during the last quarter. Hedge funds and other institutional investors own 92.74% of the company's stock.

AutoZone Company Profile

AutoZone, Inc is a specialty retailer and distributor of automotive replacement parts, equipment and accessories. The company serves do-it-yourself customers, professional automotive technicians and commercial repair businesses through its retail stores, distribution network and digital platforms.

Its merchandise includes replacement batteries, brakes, filters, belts, hoses, ignition components, tools, fluids, lighting products and other maintenance items. AutoZone also offers private-label products under brands such as Duralast, as well as vehicle diagnostic services and parts delivery for commercial customers.

Founded in 1979 as Auto Shack by Pitt Hyde, the company adopted the AutoZone name in 1987.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.