AutoZone, Inc. (NYSE:AZO) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• AutoZone has an average analyst rating of “Moderate Buy”, with 20 buy ratings, 6 holds, and 1 strong buy among 27 brokerages covering the stock.
• The company recently beat earnings expectations, reporting $38.07 EPS versus the $36.22 consensus estimate, while revenue rose 8.4% year over year to $4.84 billion.
• AutoZone’s board authorized a $1.5 billion share buyback, a move that can signal management believes the stock is undervalued.

Shares of AutoZone, Inc. (NYSE:AZO - Get Free Report) have earned an average recommendation of "Moderate Buy" from the twenty-seven brokerages that are presently covering the stock, Marketbeat.com reports. Six analysts have rated the stock with a hold rating, twenty have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $4,040.8696.

AZO has been the subject of several research reports. TD Cowen reiterated a "buy" rating and issued a $3,700.00 target price on shares of AutoZone in a report on Thursday, June 4th. UBS Group set a $4,800.00 target price on shares of AutoZone in a report on Tuesday, March 3rd. Citigroup dropped their target price on shares of AutoZone from $4,300.00 to $3,700.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. Roth Mkm dropped their target price on shares of AutoZone from $4,526.00 to $4,023.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. Finally, Truist Financial set a $3,700.00 target price on shares of AutoZone in a report on Wednesday, May 27th.

AutoZone Stock Performance

AZO stock opened at $3,127.52 on Monday. The firm has a market cap of $51.07 billion, a PE ratio of 21.50, a PEG ratio of 1.59 and a beta of 0.35. The firm's 50 day moving average price is $3,288.33 and its 200-day moving average price is $3,454.36. AutoZone has a one year low of $2,928.11 and a one year high of $4,388.11.

AutoZone (NYSE:AZO - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, beating the consensus estimate of $36.22 by $1.85. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. The firm had revenue of $4.84 billion for the quarter, compared to analyst estimates of $4.86 billion. During the same quarter in the previous year, the company earned $35.36 EPS. The business's revenue for the quarter was up 8.4% compared to the same quarter last year. Equities research analysts predict that AutoZone will post 150.51 EPS for the current fiscal year.

AutoZone announced that its board has authorized a stock buyback plan on Tuesday, June 16th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the company to buy up to 3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its shares are undervalued.

Insider Activity at AutoZone

In other AutoZone news, Director Earl G. Graves, Jr. sold 50 shares of the business's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $3,478.72, for a total value of $173,936.00. Following the completion of the transaction, the director owned 4,837 shares in the company, valued at $16,826,568.64. The trade was a 1.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Brian Hannasch purchased 165 shares of the company's stock in a transaction on Friday, May 29th. The stock was acquired at an average price of $2,987.00 per share, with a total value of $492,855.00. Following the purchase, the director owned 1,219 shares of the company's stock, valued at approximately $3,641,153. This represents a 15.65% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 2.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AutoZone

Several institutional investors have recently modified their holdings of AZO. Banco Bilbao Vizcaya Argentaria S.A. grew its stake in shares of AutoZone by 6.6% during the third quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 4,966 shares of the company's stock worth $21,315,000 after purchasing an additional 306 shares in the last quarter. Numerai GP LLC grew its stake in shares of AutoZone by 1,199.3% during the third quarter. Numerai GP LLC now owns 1,754 shares of the company's stock worth $7,525,000 after purchasing an additional 1,619 shares in the last quarter. Jupiter Asset Management Ltd. acquired a new position in shares of AutoZone during the fourth quarter worth $1,808,000. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund grew its stake in shares of AutoZone by 15.2% during the fourth quarter. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund now owns 14,224 shares of the company's stock worth $48,241,000 after purchasing an additional 1,882 shares in the last quarter. Finally, CIBC Asset Management Inc grew its stake in shares of AutoZone by 67.1% during the fourth quarter. CIBC Asset Management Inc now owns 3,941 shares of the company's stock worth $13,366,000 after purchasing an additional 1,582 shares in the last quarter. Institutional investors and hedge funds own 92.74% of the company's stock.

About AutoZone

AutoZone, Inc NYSE: AZO is a retailer and distributor of automotive replacement parts and accessories. Headquartered in Memphis, Tennessee, the company supplies a wide range of aftermarket components, maintenance items and accessories for passenger cars, light trucks and commercial vehicles. Its product assortment includes engine parts, electrical components, batteries, brakes, filters, fluids and interior and exterior accessories, supported by inventory management and logistics systems to serve retail customers and professional service providers.

AutoZone serves both do‑it‑yourself (DIY) consumers and commercial customers such as independent repair shops and service centers.

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