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

Key Points

• AutoZone, Inc. has received a consensus rating of "Moderate Buy" from 28 brokerages, with an average 1-year target price of $4,544.68.
• The company recently reported quarterly earnings of $48.71 EPS, which fell short of analysts' expectations of $50.52 EPS, with a revenue of $6.24 billion.
• AutoZone's Board of Directors has authorized a share repurchase plan, indicating confidence in the stock's value and its belief that it is currently undervalued.

AutoZone, Inc. (NYSE:AZO - Get Free Report) has earned a consensus rating of "Moderate Buy" from the twenty-eight ratings firms that are currently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, two have issued a hold rating, twenty-four have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $4,544.68.

A number of equities research analysts have recently issued reports on the stock. DA Davidson reissued a "buy" rating and issued a $4,850.00 price target on shares of AutoZone in a report on Wednesday, September 24th. UBS Group lowered their price target on shares of AutoZone from $4,925.00 to $4,800.00 and set a "buy" rating on the stock in a report on Wednesday, September 24th. Raymond James Financial lowered their price target on shares of AutoZone from $4,900.00 to $4,800.00 and set a "strong-buy" rating on the stock in a report on Wednesday, September 24th. Barclays raised their target price on shares of AutoZone from $3,916.00 to $4,610.00 and gave the company an "overweight" rating in a research note on Thursday, September 11th. Finally, Mizuho raised their target price on shares of AutoZone from $3,740.00 to $4,050.00 and gave the company an "outperform" rating in a research note on Thursday, July 3rd.

AutoZone Trading Up 1.0%

Shares of AutoZone stock opened at $4,006.67 on Wednesday. AutoZone has a 12-month low of $2,980.10 and a 12-month high of $4,388.11. The company has a market cap of $67.23 billion, a price-to-earnings ratio of 27.66, a PEG ratio of 1.87 and a beta of 0.40. The company's 50-day moving average price is $4,149.72 and its 200-day moving average price is $3,868.90.

AutoZone (NYSE:AZO - Get Free Report) last announced its quarterly earnings results on Tuesday, September 23rd. The company reported $48.71 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $50.52 by ($1.81). AutoZone had a negative return on equity of 60.49% and a net margin of 13.19%.The firm had revenue of $6.24 billion during the quarter, compared to analysts' expectations of $6.26 billion. During the same period in the previous year, the company posted $51.58 earnings per share. The company's quarterly revenue was up .6% compared to the same quarter last year. On average, sell-side analysts predict that AutoZone will post 152.94 earnings per share for the current year.

AutoZone announced that its Board of Directors has authorized a share repurchase plan on Wednesday, October 8th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at AutoZone

In related news, VP Richard Craig Smith sold 3,000 shares of the firm's stock in a transaction that occurred on Thursday, July 24th. The shares were sold at an average price of $3,875.90, for a total value of $11,627,700.00. Following the sale, the vice president directly owned 2,925 shares of the company's stock, valued at $11,337,007.50. This trade represents a 50.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP John Scott Murphy sold 2,860 shares of the firm's stock in a transaction that occurred on Wednesday, September 24th. The shares were sold at an average price of $4,175.70, for a total transaction of $11,942,502.00. Following the completion of the sale, the vice president directly owned 1,244 shares in the company, valued at $5,194,570.80. This represents a 69.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 8,393 shares of company stock valued at $33,755,091 over the last three months. 2.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AutoZone

A number of institutional investors and hedge funds have recently bought and sold shares of AZO. Kirr Marbach & Co. LLC IN raised its stake in shares of AutoZone by 0.9% during the first quarter. Kirr Marbach & Co. LLC IN now owns 7,761 shares of the company's stock worth $29,591,000 after acquiring an additional 68 shares in the last quarter. Banco Santander S.A. raised its stake in shares of AutoZone by 98.3% during the first quarter. Banco Santander S.A. now owns 829 shares of the company's stock worth $3,161,000 after acquiring an additional 411 shares in the last quarter. Alpine Bank Wealth Management purchased a new position in shares of AutoZone during the first quarter worth approximately $545,000. Harel Insurance Investments & Financial Services Ltd. raised its stake in shares of AutoZone by 19.3% during the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,607 shares of the company's stock worth $6,127,000 after acquiring an additional 260 shares in the last quarter. Finally, Quarry LP raised its stake in shares of AutoZone by 266.7% during the first quarter. Quarry LP now owns 165 shares of the company's stock worth $629,000 after acquiring an additional 120 shares in the last quarter. 92.74% of the stock is owned by hedge funds and other institutional investors.

AutoZone Company Profile

AutoZone, Inc retails and distributes automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.

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