AutoZone (NYSE:AZO) Reaches New 1-Year Low - What's Next?

Key Points

• AutoZone shares hit a new 52-week low, trading as low as $3,071.71 amid a sharp selloff, even though the stock has been under pressure for some time.
• The company beat EPS expectations with $38.07 per share and posted solid same-store sales growth, but investors focused on the revenue miss and lower gross margin, which hurt sentiment.
• Analysts remain generally constructive, with several firms raising price targets and the consensus rating still at Moderate Buy, while management continues share repurchases and expansion efforts.

AutoZone, Inc. (NYSE:AZO - Get Free Report)'s stock price reached a new 52-week low during trading on Tuesday . The company traded as low as $3,071.71 and last traded at $3,112.00, with a volume of 62469 shares. The stock had previously closed at $3,406.50.

Trending Headlines about AutoZone

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone delivered a solid earnings beat, reporting $38.07 per share versus consensus around $36.22, and same-store sales rose 3.9% companywide and 4.1% domestically.
• Positive Sentiment: Domestic growth remains a key strength, with the company saying its repair business is still “pretty inelastic,” suggesting demand is holding up even as consumers cut back in other areas. Article Title
• Neutral Sentiment: Management is continuing aggressive expansion and capital returns, including significant share repurchases, which supports the long-term investment case but may be offset near term by execution costs and margin pressure. Article Title
• Negative Sentiment: Investors were disappointed that revenue missed forecasts and gross margin fell, leading to a sharp selloff despite the EPS beat.
• Negative Sentiment: International results were described as challenged, and the stock has fallen further as traders react to profitability concerns and a softer outlook for non-U.S. operations.

Analyst Upgrades and Downgrades

AZO has been the topic of a number of research analyst reports. Mizuho increased their price objective on shares of AutoZone from $3,550.00 to $3,600.00 and gave the stock a "neutral" rating in a research report on Thursday, March 5th. Roth Mkm dropped their price target on AutoZone from $4,650.00 to $4,526.00 and set a "buy" rating on the stock in a research note on Wednesday, March 4th. JPMorgan Chase & Co. increased their price target on AutoZone from $4,100.00 to $4,300.00 and gave the stock an "overweight" rating in a report on Thursday, February 26th. Citigroup raised their price objective on AutoZone from $4,200.00 to $4,300.00 and gave the company a "buy" rating in a research note on Wednesday, March 4th. Finally, Morgan Stanley upped their target price on AutoZone from $4,000.00 to $4,020.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, AutoZone has a consensus rating of "Moderate Buy" and an average target price of $4,290.91.

AutoZone Stock Performance

The company has a market cap of $50.74 billion, a price-to-earnings ratio of 21.57, a price-to-earnings-growth ratio of 1.74 and a beta of 0.43. The stock's fifty day moving average is $3,457.35 and its two-hundred day moving average is $3,583.61.

AutoZone (NYSE:AZO - Get Free Report) last issued its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, topping the consensus estimate of $36.22 by $1.85. AutoZone had a negative return on equity of 72.31% and a net margin of 12.47%.The firm had revenue of $4.84 billion during the quarter, compared to the consensus estimate of $4.86 billion. During the same period in the prior year, the business posted $35.36 earnings per share. The company's quarterly revenue was up 8.4% compared to the same quarter last year. On average, equities research analysts expect that AutoZone, Inc. will post 149.16 EPS for the current year.

Insider Buying and Selling

In related news, Director Earl G. Graves, Jr. sold 50 shares of the stock in a transaction on Friday, April 10th. The stock was sold at an average price of $3,478.72, for a total value of $173,936.00. Following the completion of the sale, the director directly owned 4,837 shares of the company's stock, valued at approximately $16,826,568.64. This represents a 1.02% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 2.60% of the company's stock.

Institutional Trading of AutoZone

Several institutional investors have recently made changes to their positions in the company. Groupama Asset Managment increased its stake in AutoZone by 16.8% in the 1st quarter. Groupama Asset Managment now owns 153 shares of the company's stock valued at $517,000 after buying an additional 22 shares during the last quarter. Segall Bryant & Hamill LLC purchased a new position in shares of AutoZone in the 1st quarter worth approximately $14,048,000. Wellington Grp LLC boosted its stake in shares of AutoZone by 2.4% in the 1st quarter. Wellington Grp LLC now owns 600 shares of the company's stock worth $2,027,000 after buying an additional 14 shares during the last quarter. CTC Alternative Strategies Ltd. boosted its stake in shares of AutoZone by 229.5% in the 1st quarter. CTC Alternative Strategies Ltd. now owns 257 shares of the company's stock worth $868,000 after buying an additional 179 shares during the last quarter. Finally, FinArc Investments Inc. purchased a new position in shares of AutoZone in the 1st quarter worth approximately $2,908,000. Institutional investors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.