AutoZone (NYSE:AZO) Earns "Buy" Rating from TD Cowen

Key Points

• TD Cowen reiterated a buy rating on AutoZone and set a $3,700 price target, implying about 18.2% upside from the stock’s current level.
• AutoZone shares rose 2.2% to $3,129.90, while the stock remains well below its 52-week high of $4,388.11 and trades with a market cap of about $51.6 billion.
• The company recently posted strong quarterly earnings, with EPS of $38.07 beating estimates and revenue up 8.4% year over year; analyst sentiment remains favorable overall, with an average rating of Moderate Buy.

AutoZone (NYSE:AZO - Get Free Report)'s stock had its "buy" rating reissued by research analysts at TD Cowen in a report released on Thursday,Benzinga reports. They currently have a $3,700.00 price target on the stock. TD Cowen's price target suggests a potential upside of 18.21% from the stock's current price.

AZO has been the topic of several other reports. UBS Group set a $4,800.00 price target on shares of AutoZone in a research note on Tuesday, March 3rd. Jefferies Financial Group cut their price objective on shares of AutoZone from $4,400.00 to $4,000.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Argus raised shares of AutoZone from a "hold" rating to a "buy" rating and set a $4,325.00 price objective on the stock in a research note on Monday, March 9th. The Goldman Sachs Group decreased their target price on shares of AutoZone from $4,345.00 to $4,096.00 and set a "buy" rating on the stock in a research report on Wednesday, May 27th. Finally, Barclays lifted their target price on shares of AutoZone from $3,800.00 to $3,900.00 and gave the stock an "overweight" rating in a research note on Wednesday, March 4th. One analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $4,040.87.

AutoZone Trading Up 2.2%

Shares of NYSE AZO traded up $68.25 during trading on Thursday, reaching $3,129.90. The company had a trading volume of 23,464 shares, compared to its average volume of 203,398. AutoZone has a twelve month low of $2,928.11 and a twelve month high of $4,388.11. The stock has a market capitalization of $51.58 billion, a PE ratio of 21.52, a price-to-earnings-growth ratio of 1.54 and a beta of 0.35. The stock has a 50-day moving average price of $3,404.49 and a two-hundred day moving average price of $3,548.74.

AutoZone (NYSE:AZO - Get Free Report) last issued its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $36.22 by $1.85. The business had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.86 billion. AutoZone had a negative return on equity of 77.83% and a net margin of 12.40%.The business's revenue was up 8.4% on a year-over-year basis. During the same period in the prior year, the business earned $35.36 earnings per share. On average, sell-side analysts predict that AutoZone will post 150.46 EPS for the current year.

Insider Buying and Selling

In related news, Director Brian Hannasch bought 165 shares of the stock in a transaction that occurred on Friday, May 29th. The stock was purchased at an average cost of $2,987.00 per share, for a total transaction of $492,855.00. Following the completion of the acquisition, the director owned 1,219 shares in the company, valued at $3,641,153. This trade represents a 15.65% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Earl G. Graves, Jr. sold 50 shares of the company's stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $3,478.72, for a total transaction of $173,936.00. Following the transaction, the director directly owned 4,837 shares of the company's stock, valued at $16,826,568.64. This trade represents a 1.02% decrease in their position. The disclosure for this sale is available in the SEC filing. 2.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in AZO. Parallel Advisors LLC grew its position in AutoZone by 3.2% during the first quarter. Parallel Advisors LLC now owns 255 shares of the company's stock valued at $862,000 after acquiring an additional 8 shares during the period. First Nebraska Trust Co purchased a new position in shares of AutoZone in the 1st quarter worth about $1,996,000. Asset Dedication LLC lifted its stake in shares of AutoZone by 150.0% in the 1st quarter. Asset Dedication LLC now owns 10 shares of the company's stock valued at $34,000 after purchasing an additional 6 shares in the last quarter. Carlson Capital L.P. grew its holdings in shares of AutoZone by 200.0% during the 1st quarter. Carlson Capital L.P. now owns 600 shares of the company's stock worth $2,027,000 after purchasing an additional 400 shares during the period. Finally, Groupama Asset Managment grew its holdings in shares of AutoZone by 16.8% during the 1st quarter. Groupama Asset Managment now owns 153 shares of the company's stock worth $517,000 after purchasing an additional 22 shares during the period. 92.74% of the stock is owned by hedge funds and other institutional investors.

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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