AutoZone (NYSE:AZO) Rating Increased to Buy at Argus

Key Points

• Argus upgraded AutoZone from a "hold" to a "buy" and set a $4,325 price target, implying roughly an 18.8% upside from the prior close.
• The stock carries a consensus rating of "Moderate Buy" (1 Strong Buy, 21 Buy, 6 Hold) with an average price target of $4,312.13 from analysts.
• AutoZone slightly beat on quarterly EPS ($27.63 vs. $27.59 est.) but missed revenue ($4.27B vs. $4.31B est.), and shares opened around $3,641.03 and were trading down about 2.7%.

AutoZone (NYSE:AZO - Get Free Report) was upgraded by analysts at Argus from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Monday, Marketbeat Ratings reports. The brokerage currently has a $4,325.00 price target on the stock. Argus' target price suggests a potential upside of 18.79% from the company's previous close.

AZO has been the subject of several other reports. Truist Financial dropped their target price on shares of AutoZone from $4,076.00 to $4,045.00 and set a "buy" rating for the company in a research report on Wednesday, March 4th. Raymond James Financial decreased their price objective on shares of AutoZone from $4,800.00 to $4,600.00 and set a "strong-buy" rating on the stock in a research note on Wednesday, December 10th. TD Cowen restated a "buy" rating on shares of AutoZone in a research report on Monday, February 23rd. Wells Fargo & Company cut their target price on AutoZone from $4,700.00 to $4,500.00 and set an "overweight" rating for the company in a research note on Wednesday, December 10th. Finally, BMO Capital Markets reduced their target price on AutoZone from $4,400.00 to $4,300.00 and set an "outperform" rating on the stock in a report on Wednesday, March 4th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $4,312.13.

AutoZone Trading Down 2.7%

NYSE AZO opened at $3,641.03 on Monday. The company has a market cap of $60.32 billion, a price-to-earnings ratio of 25.51, a PEG ratio of 1.86 and a beta of 0.41. The company has a 50 day moving average of $3,621.83 and a 200-day moving average of $3,816.86. AutoZone has a 1-year low of $3,210.72 and a 1-year high of $4,388.11.

AutoZone (NYSE:AZO - Get Free Report) last released its earnings results on Tuesday, March 3rd. The company reported $27.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $27.59 by $0.04. AutoZone had a negative return on equity of 72.31% and a net margin of 12.47%.The company had revenue of $4.27 billion for the quarter, compared to analyst estimates of $4.31 billion. During the same period in the prior year, the firm posted $28.29 EPS. AutoZone's quarterly revenue was up 8.2% on a year-over-year basis. On average, equities research analysts forecast that AutoZone will post 152.94 earnings per share for the current year.

Insiders Place Their Bets

In other AutoZone news, Director George R. Mrkonic, Jr. sold 97 shares of the firm's stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $3,341.99, for a total value of $324,173.03. Following the sale, the director owned 3,564 shares in the company, valued at $11,910,852.36. This trade represents a 2.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Earl G. Graves, Jr. sold 250 shares of the business's stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $3,295.00, for a total transaction of $823,750.00. Following the sale, the director directly owned 4,887 shares in the company, valued at approximately $16,102,665. The trade was a 4.87% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have purchased 347 shares of company stock worth $1,179,256 and have sold 9,447 shares worth $34,179,923. 2.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AutoZone

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Laurel Wealth Advisors LLC boosted its stake in shares of AutoZone by 371,123.0% during the second quarter. Laurel Wealth Advisors LLC now owns 935,482 shares of the company's stock valued at $3,472,724,000 after purchasing an additional 935,230 shares in the last quarter. Norges Bank bought a new position in AutoZone in the 4th quarter valued at approximately $939,205,000. Vontobel Holding Ltd. boosted its position in AutoZone by 277.3% during the 3rd quarter. Vontobel Holding Ltd. now owns 102,567 shares of the company's stock worth $440,037,000 after buying an additional 75,382 shares during the period. Morgan Stanley boosted its position in AutoZone by 17.8% during the 4th quarter. Morgan Stanley now owns 492,794 shares of the company's stock worth $1,671,323,000 after buying an additional 74,555 shares during the period. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in AutoZone by 387.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 77,792 shares of the company's stock worth $263,832,000 after acquiring an additional 61,821 shares during the last quarter. Institutional investors and hedge funds own 92.74% of the company's stock.

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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