AutoZone, Inc. (NYSE:AZO) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on AutoZone, with 20 buy ratings, six holds and one strong buy. The average 12-month price target is approximately $4,029, although several firms recently lowered their targets.
• AutoZone beat quarterly EPS estimates, reporting $38.07 versus the $36.22 consensus, while revenue rose 8.4% year over year to $4.84 billion. The company also authorized a $1.5 billion share-repurchase program, allowing buybacks of up to 3% of outstanding shares.
• Institutional investors own 92.74% of the stock, with several firms initiating positions during the second quarter. Insider activity was mixed: a director purchased shares, while a vice president sold most of his holdings.

Shares of AutoZone, Inc. (NYSE:AZO - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-seven brokerages that are presently covering the company, Marketbeat.com reports. Six investment analysts have rated the stock with a hold recommendation, twenty have given a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $4,029.4348.

A number of equities research analysts recently commented on AZO shares. Morgan Stanley dropped their price objective on AutoZone from $4,020.00 to $3,605.00 and set an "overweight" rating for the company in a report on Wednesday, May 27th. JPMorgan Chase & Co. decreased their target price on AutoZone from $4,300.00 to $3,850.00 and set an "overweight" rating for the company in a research report on Wednesday, May 27th. Truist Financial set a $3,700.00 target price on AutoZone in a research report on Wednesday, May 27th. Jefferies Financial Group lowered their price target on AutoZone from $4,400.00 to $4,000.00 and set a "buy" rating for the company in a research note on Wednesday, May 27th. Finally, Weiss Ratings downgraded shares of AutoZone from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, July 23rd.

Insider Activity at AutoZone

In other news, Director Brian Hannasch purchased 165 shares of the firm's stock in a transaction dated Friday, May 29th. The stock was bought at an average price of $2,987.00 per share, with a total value of $492,855.00. Following the acquisition, the director directly 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Dennis W. Leriche sold 1,455 shares of the firm's stock in a transaction on 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 sale, the vice president directly owned 441 shares in the company, valued at $1,367,100. The trade was a 76.74% decrease in their position. The SEC filing for this sale provides additional information. 2.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Equitable Holdings Inc. bought a new stake in shares of AutoZone in the second quarter worth about $3,934,000. N10 Assets LLC acquired a new stake in shares of AutoZone during the second quarter worth about $329,000. Jefferies Financial Group Inc. bought a new position in shares of AutoZone during the 2nd quarter valued at about $12,685,000. Public Employees Retirement System of Ohio bought a new position in shares of AutoZone during the 2nd quarter valued at about $19,607,000. Finally, MASTERINVEST Kapitalanlage GmbH acquired a new position in shares of AutoZone in the 2nd quarter valued at approximately $3,170,000. 92.74% of the stock is owned by institutional investors and hedge funds.

AutoZone Stock Performance

AZO opened at $3,017.68 on Tuesday. The company has a fifty day moving average price of $3,062.36 and a two-hundred day moving average price of $3,349.21. The firm has a market capitalization of $49.28 billion, a PE ratio of 20.75, a P/E/G ratio of 1.54 and a beta of 0.33. AutoZone has a 52 week low of $2,902.20 and a 52 week high of $4,388.11.

AutoZone (NYSE:AZO - Get Free Report) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $38.07 earnings per share for the quarter, beating analysts' consensus estimates of $36.22 by $1.85. AutoZone had a negative return on equity of 80.35% and a net margin of 12.40%.The company had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.86 billion. During the same quarter in the prior year, the business posted $35.36 EPS. The firm's quarterly revenue was up 8.4% on a year-over-year basis. Equities analysts forecast that AutoZone will post 150.39 EPS for the current year.

AutoZone declared that its Board of Directors has initiated a share buyback plan on Tuesday, June 16th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the company to reacquire up to 3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

AutoZone Company Profile

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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