AutoZone, Inc. $AZO Position Trimmed by Clio Asset Management LLC

Key Points

• Clio Asset Management cut its AutoZone stake by 29.2% in the first quarter, though the stock remains one of its largest holdings and was still valued at about $8.98 million.
• AutoZone’s latest earnings beat expectations, with EPS of $38.07 versus the $36.22 estimate and revenue of $4.84 billion, up 8.4% year over year.
• The company’s board authorized a $1.5 billion share buyback, while analysts still broadly rate the stock a Moderate Buy despite several price target cuts.

Clio Asset Management LLC lessened its stake in shares of AutoZone, Inc. (NYSE:AZO - Free Report) by 29.2% in the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 2,658 shares of the company's stock after selling 1,098 shares during the period. AutoZone accounts for about 7.5% of Clio Asset Management LLC's investment portfolio, making the stock its 6th biggest holding. Clio Asset Management LLC's holdings in AutoZone were worth $8,978,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Turning Point Benefit Group Inc. purchased a new position in AutoZone during the third quarter valued at approximately $25,000. Torren Management LLC bought a new position in shares of AutoZone in the fourth quarter worth approximately $27,000. Transamerica Financial Advisors LLC increased its stake in shares of AutoZone by 100.0% in the fourth quarter. Transamerica Financial Advisors LLC now owns 8 shares of the company's stock worth $28,000 after purchasing an additional 4 shares in the last quarter. MCF Advisors LLC increased its stake in shares of AutoZone by 50.0% in the fourth quarter. MCF Advisors LLC now owns 9 shares of the company's stock worth $31,000 after purchasing an additional 3 shares in the last quarter. Finally, Bard Associates Inc. bought a new stake in shares of AutoZone during the 4th quarter valued at $31,000. Hedge funds and other institutional investors own 92.74% of the company's stock.

Insider Activity at AutoZone

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

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Morgan Stanley lowered their target price on shares of AutoZone from $4,020.00 to $3,605.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 27th. The Goldman Sachs Group cut their price target on AutoZone from $4,345.00 to $4,096.00 and set a "buy" rating for the company in a research note on Wednesday, May 27th. Roth Mkm decreased their price target on AutoZone from $4,526.00 to $4,023.00 and set a "buy" rating on the stock in a report on Wednesday, May 27th. DA Davidson lowered their price objective on 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. Finally, Citigroup dropped their price objective on AutoZone from $4,300.00 to $3,700.00 and set a "buy" rating for the company in a research note on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $4,040.87.

AutoZone Stock Performance

Shares of AZO opened at $3,059.55 on Friday. The stock has a market capitalization of $49.96 billion, a PE ratio of 21.04, a P/E/G ratio of 1.57 and a beta of 0.35. The company's fifty day moving average is $3,296.67 and its 200 day moving average is $3,458.93. AutoZone, Inc. has a fifty-two week low of $2,928.11 and a fifty-two week high of $4,388.11.

AutoZone (NYSE:AZO - Get Free Report) last released its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, beating the consensus estimate of $36.22 by $1.85. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. The business had revenue of $4.84 billion during the quarter, compared to analyst estimates of $4.86 billion. During the same quarter last year, the business earned $35.36 earnings per share. AutoZone's quarterly revenue was up 8.4% compared to the same quarter last year. As a group, research analysts forecast that AutoZone, Inc. will post 150.51 earnings per share for the current year.

AutoZone declared that its board has authorized a share buyback plan on Tuesday, June 16th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the company to buy up to 3% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

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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