AutoZone, Inc. $AZO Shares Sold by California Public Employees Retirement System

Key Points

• CalPERS cut its AutoZone stake by 26.5% in the first quarter, selling 11,270 shares and ending with 31,315 shares worth about $105.8 million. Institutional investors still own a large majority of the stock, at 92.74%.
• Analyst sentiment remains broadly positive, with one Strong Buy, 20 Buy ratings, and six Hold ratings. The stock’s consensus target price is $4,040.87, despite several recent target-price reductions.
• AutoZone delivered solid earnings and approved buybacks, posting EPS of $38.07 versus expectations of $36.22 and revenue growth of 8.4% year over year. The board also authorized a $1.5 billion share repurchase plan, signaling confidence in the stock.

California Public Employees Retirement System decreased its position in shares of AutoZone, Inc. (NYSE:AZO - Free Report) by 26.5% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 31,315 shares of the company's stock after selling 11,270 shares during the quarter. California Public Employees Retirement System owned approximately 0.19% of AutoZone worth $105,775,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also made changes to their positions in AZO. Gryphon Financial Partners LLC acquired a new position in AutoZone during the first quarter worth approximately $206,000. Modera Wealth Management LLC boosted its holdings in shares of AutoZone by 10.3% in the first quarter. Modera Wealth Management LLC now owns 172 shares of the company's stock valued at $581,000 after acquiring an additional 16 shares during the period. Gallacher Capital Management LLC acquired a new stake in shares of AutoZone in the first quarter valued at approximately $220,000. Angeles Wealth Management LLC grew its position in shares of AutoZone by 30.3% during the first quarter. Angeles Wealth Management LLC now owns 129 shares of the company's stock worth $436,000 after acquiring an additional 30 shares during the last quarter. Finally, Bessemer Group Inc. grew its position in shares of AutoZone by 3.8% during the first quarter. Bessemer Group Inc. now owns 919 shares of the company's stock worth $3,105,000 after acquiring an additional 34 shares during the last quarter. Institutional investors and hedge funds own 92.74% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently commented on AZO. TD Cowen reaffirmed a "buy" rating and issued a $3,700.00 target price on shares of AutoZone in a report on Thursday, June 4th. Weiss Ratings upgraded shares of AutoZone from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, July 8th. Mizuho lowered their price objective on shares of AutoZone from $3,600.00 to $3,200.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 27th. Jefferies Financial Group dropped their price objective on shares of AutoZone from $4,400.00 to $4,000.00 and set a "buy" rating on the stock in a research note on Wednesday, May 27th. Finally, JPMorgan Chase & Co. reduced their target price on shares of AutoZone from $4,300.00 to $3,850.00 and set an "overweight" rating for the company in a report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $4,040.87.

Insider Activity at AutoZone

In related news, Director Brian Hannasch purchased 165 shares of AutoZone stock in a transaction dated 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 transaction, the director 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. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 2.60% of the stock is owned by company insiders.

AutoZone Stock Performance

AZO stock opened at $3,046.69 on Friday. AutoZone, Inc. has a one year low of $2,928.11 and a one year high of $4,388.11. The stock has a market capitalization of $49.74 billion, a PE ratio of 20.95, a price-to-earnings-growth ratio of 1.55 and a beta of 0.33. The company has a fifty day moving average of $3,142.61 and a 200-day moving average of $3,416.46.

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

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

AutoZone 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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