AutoZone, Inc. (NYSE:AZO) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analyst sentiment remains positive: Twenty-seven firms give AutoZone a consensus “Moderate Buy” rating, with 18 buys, 7 holds and 2 strong buys. The average 12-month price target is $3,669.12, though several analysts recently lowered their targets.
• AutoZone reported quarterly revenue of $6.59 billion, up 5.6% year over year but below the $6.70 billion consensus estimate. Adjusted earnings of $56.05 per share exceeded analyst expectations.
• The company authorized a $1.5 billion share-repurchase program, while institutional investors hold 92.74% of outstanding shares. AutoZone shares opened at $2,900.90, near the lower end of their 52-week range.

AutoZone, Inc. (NYSE:AZO - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twenty-seven research firms that are presently covering the stock, Marketbeat Ratings reports. Seven investment analysts have rated the stock with a hold rating, eighteen have issued a buy rating and two have given a strong buy rating to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $3,669.12.

A number of analysts have recently issued reports on the company. BMO Capital Markets lowered their price target on AutoZone from $4,000.00 to $3,500.00 and set an "outperform" rating on the stock in a research note on Wednesday, September 23rd. Wells Fargo & Company reduced their price objective on AutoZone from $4,150.00 to $3,500.00 and set an "overweight" rating for the company in a research note on Thursday, September 10th. The Goldman Sachs Group lowered their target price on shares of AutoZone from $4,096.00 to $3,917.00 and set a "buy" rating on the stock in a research note on Wednesday, September 23rd. Morgan Stanley cut shares of AutoZone from an "overweight" rating to a "market perform" rating in a research report on Tuesday, September 29th. Finally, TD Cowen decreased their price target on shares of AutoZone from $3,500.00 to $3,400.00 and set a "buy" rating on the stock in a research note on Wednesday, September 23rd.

AutoZone Trading Up 3.3%

Shares of AutoZone stock opened at $2,900.90 on Wednesday. The firm has a market capitalization of $47.37 billion, a PE ratio of 18.99, a P/E/G ratio of 1.30 and a beta of 0.40. AutoZone has a twelve month low of $2,730.65 and a twelve month high of $4,170.00. The firm's 50-day moving average price is $2,955.17 and its 200 day moving average price is $3,152.61.

AutoZone (NYSE:AZO - Get Free Report) last posted its quarterly earnings data on Tuesday, September 22nd. The company reported $56.05 EPS for the quarter, topping the consensus estimate of $0.54 by $55.51. AutoZone had a negative return on equity of 90.08% and a net margin of 12.65%.The company had revenue of $6.59 billion during the quarter, compared to analyst estimates of $6.70 billion. During the same period in the previous year, the business earned $48.71 EPS. AutoZone's quarterly revenue was up 5.6% on a year-over-year basis. On average, sell-side analysts predict that AutoZone will post 172.12 EPS for the current fiscal year.

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

Insiders Place Their Bets

In other AutoZone news, VP Dennis LeRiche sold 1,455 shares of the company'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 completion of the sale, the vice president directly owned 441 shares in the company, valued at $1,367,100. This represents a 76.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new position in AutoZone during the second quarter worth about $3,938,566,000. First Manhattan CO. LLC. raised its position in shares of AutoZone by 2.7% during the 4th quarter. First Manhattan CO. LLC. now owns 261,314 shares of the company's stock valued at $886,246,000 after buying an additional 6,765 shares during the period. Envestnet Portfolio Solutions Inc. raised its position in shares of AutoZone by 247,417.8% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 249,993 shares of the company's stock valued at $798,963,000 after buying an additional 249,892 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in AutoZone in the second quarter valued at approximately $572,885,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in AutoZone by 11,577.6% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 141,066 shares of the company's stock valued at $450,838,000 after acquiring an additional 139,858 shares during the last quarter. Institutional investors and hedge funds own 92.74% of the company's stock.

About AutoZone

AutoZone, Inc is a specialty retailer of automotive replacement parts, accessories and maintenance products. The company serves do-it-yourself customers as well as professional automotive repair shops, offering products such as batteries, brakes, filters, engine components, tools, fluids and other vehicle parts.

In addition to its retail stores, AutoZone provides commercial sales and delivery services for professional repair businesses. The company also operates ALLDATA, which offers automotive diagnostic, repair and shop-management software and information services to repair professionals.

Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates primarily in the United States, with additional stores and operations in Mexico and Brazil.

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