Roth Capital Lowers AutoZone (NYSE:AZO) Price Target to $3,850.00

Key Points

• Roth Capital lowered AutoZone’s price target to $3,850 from $4,023 but maintained a “buy” rating, implying 33.63% upside from the prior close.
• AutoZone’s quarterly earnings beat expectations at $56.05 per share, while revenue rose 5.6% year over year to $6.59 billion but fell short of the $6.70 billion consensus estimate.
• Shares declined 0.5% to $2,881.19 amid broader analyst target reductions and concerns about softer DIY demand, though the company authorized a $1.5 billion share-repurchase plan.

AutoZone (NYSE:AZO - Get Free Report) had its price objective reduced by research analysts at Roth Capital from $4,023.00 to $3,850.00 in a research report issued on Wednesday, Benzinga reports. The firm currently has a "buy" rating on the stock. Roth Capital's target price suggests a potential upside of 33.63% from the company's previous close.

AZO has been the subject of several other reports. Barclays reduced their price target on AutoZone from $3,637.00 to $3,400.00 and set an "overweight" rating for the company in a report on Wednesday. DA Davidson cut 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. Robert W. Baird reduced their price objective on shares of AutoZone from $3,600.00 to $3,400.00 and set a "neutral" rating for the company in a research note on Wednesday. TD Cowen decreased their target price on shares of AutoZone from $3,500.00 to $3,400.00 and set a "buy" rating for the company in a report on Wednesday. Finally, Guggenheim dropped their target price on shares of AutoZone from $4,000.00 to $3,750.00 and set a "buy" rating on the stock in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $3,724.58.

AutoZone Stock Down 0.5%

Shares of NYSE AZO traded down $13.54 on Wednesday, reaching $2,881.19. 357,308 shares of the company's stock traded hands, compared to its average volume of 259,451. The business's 50 day simple moving average is $2,986.72 and its two-hundred day simple moving average is $3,205.00. AutoZone has a 12 month low of $2,764.88 and a 12 month high of $4,332.68. The company has a market cap of $47.05 billion, a price-to-earnings ratio of 19.79, a price-to-earnings-growth ratio of 1.41 and a beta of 0.34.

AutoZone (NYSE:AZO - Get Free Report) last issued its quarterly earnings results on Tuesday, September 22nd. The company reported $56.05 EPS for the quarter, topping analysts' consensus estimates of $0.54 by $55.51. AutoZone had a negative return on equity of 80.35% and a net margin of 12.40%.The firm had revenue of $6.59 billion for the quarter, compared to analysts' expectations of $6.70 billion. During the same period in the previous year, the firm posted $48.71 EPS. The business's revenue for the quarter was up 5.6% compared to the same quarter last year. Analysts forecast that AutoZone will post 150.61 earnings per share for the current fiscal year.

AutoZone announced that its Board of Directors has initiated a share repurchase plan on Tuesday, June 16th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 3% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its stock is undervalued.

Insider Activity at AutoZone

In other news, VP Dennis LeRiche sold 1,455 shares of the business's stock in a transaction that occurred 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 transaction, the vice president directly owned 441 shares of the company's stock, valued at $1,367,100. The trade was a 76.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 2.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AutoZone

A number of hedge funds have recently added to or reduced their stakes in AZO. Edmond DE Rothschild Holding S.A. purchased a new stake in AutoZone during the 2nd quarter valued at $29,000. MCF Advisors LLC increased its position in AutoZone by 50.0% during the fourth quarter. MCF Advisors LLC now owns 9 shares of the company's stock valued at $31,000 after acquiring an additional 3 shares during the last quarter. Bard Associates Inc. bought a new position in AutoZone during the fourth quarter valued at $31,000. Tacita Capital Inc purchased a new stake in shares of AutoZone in the second quarter valued at $32,000. Finally, Asset Dedication LLC lifted its holdings in shares of AutoZone by 150.0% in the 1st quarter. Asset Dedication LLC now owns 10 shares of the company's stock worth $34,000 after acquiring an additional 6 shares during the last quarter. 92.74% of the stock is currently owned by hedge funds and other institutional investors.

Key AutoZone News

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone reported fiscal fourth-quarter earnings of $56.05 per diluted share, above estimates of roughly $54.50 and up from $48.71 a year earlier. Net sales increased 5.6% to approximately $6.6 billion, while operating profit rose 10.1% to $1.3 billion. AutoZone Q4 Earnings Beat Estimates on Tariff Refunds, Sales Miss
• Positive Sentiment: Profitability benefited from gross-margin expansion to 53.3%, partly due to tariff refunds and a favorable non-cash LIFO comparison. The company also repurchased about $697.5 million of stock and opened 175 stores during the quarter. AutoZone Q4 Earnings and Margin Gains
• Positive Sentiment: Management said it is positioned for sales growth in fiscal 2027. Commercial sales and international operations remained comparatively strong, with international same-store sales up 10.7%, supporting the company’s market-share and expansion narrative. Why AutoZone Stock Rallied Today
• Neutral Sentiment: Reported same-store sales increased 2.7%, or 1.5% on a constant-currency basis, with domestic same-store sales up 1.6%. The results indicate continued growth but also show that demand is not accelerating evenly across the business.
• Negative Sentiment: Revenue of $6.59 billion fell short of the approximately $6.7 billion consensus estimate, while softer DIY demand and the same-store-sales performance raised concerns about underlying sales momentum. AutoZone Reports Mixed Fiscal Fourth-Quarter Results
• Negative Sentiment: Analysts lowered price targets following the report: DA Davidson, BMO Capital Markets, Raymond James, Mizuho and Robert W. Baird all reduced targets, although ratings ranged from neutral to strong buy. The cuts suggest expectations have been reset despite the earnings beat. AutoZone Analysts Cut Their Forecasts After Q4 Results

AutoZone Company Profile

AutoZone, Inc is a retailer and distributor of automotive replacement parts, accessories, and maintenance products. The company serves do-it-yourself customers, professional service technicians, and commercial repair businesses through its stores, distribution network, and online platform.

Its product offerings include replacement parts such as batteries, brakes, engine components, and ignition products, along with tools, fluids, filters, and other automotive accessories. AutoZone also provides services such as parts lookup, diagnostic assistance, battery testing and charging, and loaner tools for eligible repairs.

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

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