Atreides Management LP Increases Stock Position in AutoZone, Inc. $AZO

Key Points

• Atreides Management LP increased its AutoZone stake by 6.3% in the fourth quarter, and institutional ownership remains very high at 92.74% of the company.
• AutoZone shares were down 2.2% to $3,058.27, while the stock still carries a market cap of about $49.94 billion and trades near a P/E of 21.03.
• The company recently reported better-than-expected earnings of $38.07 per share and also announced a $1.5 billion share repurchase plan, signaling confidence from management and the board.

Atreides Management LP lifted its position in shares of AutoZone, Inc. (NYSE:AZO - Free Report) by 6.3% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 11,620 shares of the company's stock after acquiring an additional 692 shares during the quarter. Atreides Management LP owned 0.07% of AutoZone worth $39,409,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of the company. Morgan Stanley raised its holdings in 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 last quarter. Price T Rowe Associates Inc. MD raised its holdings in AutoZone by 1.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 387,042 shares of the company's stock valued at $1,312,654,000 after acquiring an additional 7,390 shares during the last quarter. Norges Bank acquired a new position in AutoZone in the 4th quarter valued at $939,205,000. PineStone Asset Management Inc. raised its holdings in AutoZone by 1.5% in the 4th quarter. PineStone Asset Management Inc. now owns 269,173 shares of the company's stock valued at $912,900,000 after acquiring an additional 3,868 shares during the last quarter. Finally, Northern Trust Corp raised its holdings in AutoZone by 1.2% in the 3rd quarter. Northern Trust Corp now owns 189,789 shares of the company's stock valued at $814,240,000 after acquiring an additional 2,333 shares during the last quarter. Hedge funds and other institutional investors own 92.74% of the company's stock.

AutoZone Trading Down 2.2%

Shares of NYSE AZO opened at $3,058.27 on Thursday. AutoZone, Inc. has a 12-month low of $2,928.11 and a 12-month high of $4,388.11. The company has a market cap of $49.94 billion, a P/E ratio of 21.03, a P/E/G ratio of 1.59 and a beta of 0.35. The stock has a fifty day moving average price of $3,348.30 and a 200 day moving average price of $3,493.73.

AutoZone (NYSE:AZO - Get Free Report) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 earnings per share for the quarter, beating analysts' consensus estimates of $36.22 by $1.85. The company had revenue of $4.84 billion during the quarter, compared to analysts' expectations of $4.86 billion. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. The firm's revenue for the quarter was up 8.4% on a year-over-year basis. During the same period in the prior year, the company posted $35.36 EPS. On average, sell-side analysts forecast that AutoZone, Inc. will post 150.45 EPS for the current fiscal year.

AutoZone declared that its board has authorized a share repurchase plan on Tuesday, June 16th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the company to purchase up to 3% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on AZO. Truist Financial set a $3,700.00 price objective on AutoZone in a report on Wednesday, May 27th. Jefferies Financial Group dropped their price objective on AutoZone from $4,400.00 to $4,000.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. BNP Paribas Exane dropped their price objective on AutoZone from $4,478.00 to $3,979.00 and set an "outperform" rating for the company in a report on Wednesday, May 27th. JPMorgan Chase & Co. dropped their price objective on AutoZone from $4,300.00 to $3,850.00 and set an "overweight" rating for the company in a report on Wednesday, May 27th. Finally, The Goldman Sachs Group dropped their price objective on AutoZone from $4,345.00 to $4,096.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, AutoZone has a consensus rating of "Moderate Buy" and a consensus target price of $4,040.87.

Insider Transactions at AutoZone

In other AutoZone news, Director Earl G. Graves, Jr. sold 50 shares of the company's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $3,478.72, for a total value of $173,936.00. Following the completion of the transaction, the director directly owned 4,837 shares of the company's stock, valued at $16,826,568.64. This represents a 1.02% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Brian Hannasch acquired 165 shares of the firm's stock in a transaction on Friday, May 29th. The stock was purchased at an average cost of $2,987.00 per share, with a total value of $492,855.00. Following the completion of the transaction, the director owned 1,219 shares in the company, valued at $3,641,153. The trade was a 15.65% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 2.60% 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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