532 Shares in AutoZone, Inc. $AZO Acquired by Summit Global Investments

Key Points

• Summit Global Investments acquired 532 AutoZone shares worth approximately $1.7 million during the second quarter. Institutional investors collectively own 92.74% of the company.
• AutoZone exceeded quarterly EPS expectations, reporting $38.07 versus the $36.22 consensus, while revenue rose 8.4% year over year to $4.84 billion. The board also authorized a $1.5 billion share-repurchase program.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $4,029.43, despite several recent target cuts; the stock recently traded near $3,026.92, well below its 52-week high.

Summit Global Investments purchased a new position in shares of AutoZone, Inc. (NYSE:AZO - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 532 shares of the company's stock, valued at approximately $1,700,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in AZO. Norges Bank acquired a new stake in shares of AutoZone in the fourth quarter valued at approximately $939,205,000. Morgan Stanley increased its holdings in shares of AutoZone by 17.8% in the 4th quarter. Morgan Stanley now owns 492,794 shares of the company's stock valued at $1,671,323,000 after acquiring an additional 74,555 shares during the period. Northwestern Mutual Wealth Management Co. raised its position in AutoZone by 387.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 77,792 shares of the company's stock valued at $263,832,000 after purchasing an additional 61,821 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in AutoZone by 39.5% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 176,986 shares of the company's stock valued at $584,730,000 after purchasing an additional 50,071 shares during the last quarter. Finally, AQR Capital Management LLC boosted its stake in AutoZone by 80.8% during the 3rd quarter. AQR Capital Management LLC now owns 101,185 shares of the company's stock worth $432,059,000 after purchasing an additional 45,212 shares during the period. Hedge funds and other institutional investors own 92.74% of the company's stock.

AutoZone Price Performance

NYSE:AZO opened at $3,026.92 on Friday. The firm has a market cap of $49.41 billion, a price-to-earnings ratio of 20.81, a price-to-earnings-growth ratio of 1.54 and a beta of 0.33. The firm's fifty day moving average price is $3,063.49 and its 200 day moving average price is $3,357.72. AutoZone, Inc. has a 1-year low of $2,902.20 and a 1-year high of $4,388.11.

AutoZone (NYSE:AZO - Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, topping analysts' consensus estimates of $36.22 by $1.85. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. The company had revenue of $4.84 billion during the quarter, compared to the consensus estimate of $4.86 billion. During the same quarter in the prior year, the firm earned $35.36 EPS. AutoZone's quarterly revenue was up 8.4% on a year-over-year basis. As a group, analysts expect that AutoZone, Inc. will post 150.39 earnings per share for the current fiscal year.

AutoZone declared that its Board of Directors has initiated a share repurchase program on Tuesday, June 16th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the company to repurchase up to 3% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

Several research analysts have issued reports on the stock. DA Davidson lowered their price objective on shares of AutoZone from $4,300.00 to $3,750.00 and set a "buy" rating on the stock in a research report on Wednesday, May 27th. Robert W. Baird reduced their target price on shares of AutoZone from $3,900.00 to $3,600.00 and set a "neutral" rating for the company in a report on Wednesday, May 27th. Mizuho decreased their target price on shares of AutoZone from $3,600.00 to $3,200.00 and set a "neutral" rating for the company in a research note on Wednesday, May 27th. Weiss Ratings lowered AutoZone from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, July 23rd. Finally, JPMorgan Chase & Co. dropped their price target on AutoZone from $4,300.00 to $3,850.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $4,029.43.

Insider Activity

In other news, Director Brian Hannasch purchased 165 shares of the company's stock in a transaction dated Friday, May 29th. The shares were acquired at an average cost of $2,987.00 per share, for a total transaction of $492,855.00. Following the completion of the purchase, the director directly owned 1,219 shares in the company, valued at $3,641,153. The trade was a 15.65% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Dennis W. Leriche sold 1,455 shares of the stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $3,100.00, for a total transaction of $4,510,500.00. Following the transaction, the vice president directly owned 441 shares of the company's stock, valued at $1,367,100. This represents a 76.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.60% of the stock is owned by insiders.

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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