AutoZone, Inc. $AZO Shares Purchased by Royal Bank of Canada

Key Points

• Royal Bank of Canada slightly increased its AutoZone stake in the fourth quarter, while several other large institutional investors also boosted holdings, underscoring strong hedge fund and asset manager interest in the stock.
• AutoZone reported better-than-expected quarterly earnings of $38.07 per share, with revenue rising 8.4% year over year, and the company also authorized a $1.5 billion share repurchase program.
• Wall Street remains largely constructive on AZO, with a Moderate Buy consensus and an average price target of about $4,040.87, though some analysts recently trimmed their targets.

Royal Bank of Canada raised its holdings in shares of AutoZone, Inc. (NYSE:AZO - Free Report) by 0.2% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 348,010 shares of the company's stock after purchasing an additional 619 shares during the quarter. Royal Bank of Canada owned 2.10% of AutoZone worth $1,180,276,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in AZO. Norges Bank acquired a new position in shares of AutoZone in the 4th quarter worth approximately $939,205,000. Morgan Stanley grew its position in shares of AutoZone by 17.8% in the 4th quarter. Morgan Stanley now owns 492,794 shares of the company's stock worth $1,671,323,000 after acquiring an additional 74,555 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its position in shares of AutoZone by 387.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 77,792 shares of the company's stock worth $263,832,000 after acquiring an additional 61,821 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in shares of AutoZone by 39.5% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 176,986 shares of the company's stock worth $584,730,000 after acquiring an additional 50,071 shares in the last quarter. Finally, AQR Capital Management LLC grew its position in shares of AutoZone by 80.8% in the 3rd quarter. AQR Capital Management LLC now owns 101,185 shares of the company's stock worth $432,059,000 after acquiring an additional 45,212 shares in the last quarter. Institutional investors and hedge funds own 92.74% of the company's stock.

AutoZone Trading Up 0.7%

Shares of NYSE AZO opened at $3,128.25 on Wednesday. The company has a market cap of $51.08 billion, a price-to-earnings ratio of 21.51, a price-to-earnings-growth ratio of 1.58 and a beta of 0.35. AutoZone, Inc. has a 12-month low of $2,928.11 and a 12-month high of $4,388.11. The stock's 50 day simple moving average is $3,355.86 and its 200 day simple moving average is $3,500.15.

AutoZone (NYSE:AZO - Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $38.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $36.22 by $1.85. The business had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.86 billion. AutoZone had a negative return on equity of 80.35% and a net margin of 12.40%.The business's revenue was up 8.4% on a year-over-year basis. During the same quarter last year, the business posted $35.36 EPS. As a group, equities analysts forecast that AutoZone, Inc. will post 150.45 earnings per share for the current fiscal year.

AutoZone announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, June 16th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the company to buy up to 3% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

AZO has been the subject of several research reports. Oppenheimer reiterated an "outperform" rating and issued a $4,300.00 target price (up from $4,150.00) on shares of AutoZone in a research report on Tuesday, March 10th. JPMorgan Chase & Co. decreased their target price on AutoZone from $4,300.00 to $3,850.00 and set an "overweight" rating for the company in a research report on Wednesday, May 27th. TD Cowen reiterated a "buy" rating and issued a $3,700.00 target price on shares of AutoZone in a research report on Thursday, June 4th. DA Davidson decreased their target price on AutoZone from $4,300.00 to $3,750.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Finally, Barclays lifted their target price on AutoZone from $3,800.00 to $3,900.00 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 data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $4,040.87.

Insider Activity at AutoZone

In related news, Director Earl G. Graves, Jr. sold 50 shares of the firm'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 value of $173,936.00. Following the sale, the director owned 4,837 shares of the company's stock, valued at approximately $16,826,568.64. This trade represents a 1.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Brian Hannasch purchased 165 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was bought at an average cost of $2,987.00 per share, for a total transaction of $492,855.00. Following the acquisition, the director owned 1,219 shares in the company, valued at approximately $3,641,153. The trade was a 15.65% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company 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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