AutoZone (NYSE:AZO) Hits New 12-Month High - Still a Buy?

Key Points

• AutoZone's stock reached a new 52-week high of $4,102.50, reflecting strong investor interest, with shares trading at an average price target of $4,101.29 from analysts.
• Several analysts have upgraded their ratings and price targets on AutoZone, with Evercore ISI increasing its target to $4,250.00 and multiple firms assigning "buy" ratings.
• Despite missing earnings expectations by $1.71 per share, AutoZone's revenue increased by 5.4% year-over-year, indicating robust operational performance.

Shares of AutoZone, Inc. (NYSE:AZO - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $4,100.00 and last traded at $4,102.50, with a volume of 9714 shares trading hands. The stock had previously closed at $4,039.95.

Wall Street Analysts Forecast Growth

A number of research firms have commented on AZO. Wells Fargo & Company set a $4,200.00 price objective on AutoZone and gave the stock an "overweight" rating in a research note on Monday, May 19th. Raymond James Financial reissued a "strong-buy" rating on shares of AutoZone in a report on Wednesday, May 28th. Morgan Stanley reaffirmed an "overweight" rating and issued a $4,000.00 price target (up previously from $3,750.00) on shares of AutoZone in a research note on Wednesday, May 28th. Mizuho upped their price objective on shares of AutoZone from $3,740.00 to $4,050.00 and gave the stock an "outperform" rating in a research report on Thursday, July 3rd. Finally, Guggenheim raised their target price on shares of AutoZone from $3,850.00 to $4,100.00 and gave the company a "buy" rating in a report on Wednesday, May 28th. Three analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $4,101.29.

AutoZone Price Performance

The stock has a market cap of $68.88 billion, a P/E ratio of 27.78, a PEG ratio of 2.46 and a beta of 0.38. The stock has a 50-day simple moving average of $3,809.57 and a 200-day simple moving average of $3,690.97.

AutoZone (NYSE:AZO - Get Free Report) last posted its quarterly earnings results on Tuesday, May 27th. The company reported $35.36 earnings per share for the quarter, missing analysts' consensus estimates of $37.07 by ($1.71). The company had revenue of $4.46 billion during the quarter, compared to analyst estimates of $4.41 billion. AutoZone had a net margin of 13.56% and a negative return on equity of 56.07%. The company's revenue for the quarter was up 5.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $36.69 earnings per share. As a group, sell-side analysts forecast that AutoZone, Inc. will post 152.94 earnings per share for the current year.

Insider Transactions at AutoZone

In other AutoZone news, SVP K. Michelle Borninkhof sold 750 shares of the company's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $3,597.13, for a total value of $2,697,847.50. Following the completion of the transaction, the senior vice president owned 406 shares of the company's stock, valued at $1,460,434.78. This represents a 64.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Jamere Jackson sold 2,612 shares of AutoZone stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $3,728.05, for a total value of $9,737,666.60. Following the sale, the chief financial officer directly owned 427 shares in the company, valued at $1,591,877.35. The trade was a 85.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 33,862 shares of company stock worth $126,058,789. Insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On AutoZone

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Stance Capital LLC bought a new stake in shares of AutoZone in the second quarter worth $1,492,000. B. Riley Wealth Advisors Inc. bought a new position in AutoZone during the 2nd quarter worth $2,173,000. Hudson Bay Capital Management LP lifted its holdings in AutoZone by 658.0% during the 2nd quarter. Hudson Bay Capital Management LP now owns 16,358 shares of the company's stock worth $60,725,000 after buying an additional 14,200 shares during the period. Geneos Wealth Management Inc. grew its position in shares of AutoZone by 13.7% in the 2nd quarter. Geneos Wealth Management Inc. now owns 83 shares of the company's stock valued at $308,000 after buying an additional 10 shares during the last quarter. Finally, CYBER HORNET ETFs LLC acquired a new stake in shares of AutoZone in the second quarter valued at about $167,000. 92.74% of the stock is currently owned by institutional investors and hedge funds.

About AutoZone

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.