AutoZone, Inc. $AZO Stock Position Cut by Dorsey Asset Management LLC

Key Points

• Dorsey Asset Management trimmed its AutoZone position by 15.9% in the fourth quarter, selling 4,757 shares and leaving it with 25,121 shares worth about $85.2 million.
• AutoZone reported better-than-expected quarterly earnings, posting EPS of $38.07 versus estimates of $36.22, while revenue rose 8.4% year over year to $4.84 billion.
• The company’s board approved a $1.5 billion share repurchase program, authorizing buybacks of up to 3% of outstanding stock, even as analysts remain broadly positive with a consensus Moderate Buy rating.

Dorsey Asset Management LLC cut its position in shares of AutoZone, Inc. (NYSE:AZO - Free Report) by 15.9% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 25,121 shares of the company's stock after selling 4,757 shares during the period. AutoZone accounts for 7.4% of Dorsey Asset Management LLC's holdings, making the stock its 8th biggest position. Dorsey Asset Management LLC owned about 0.15% of AutoZone worth $85,198,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Banco Bilbao Vizcaya Argentaria S.A. boosted its holdings in AutoZone by 6.6% during the third quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 4,966 shares of the company's stock worth $21,315,000 after buying an additional 306 shares in the last quarter. Numerai GP LLC boosted its holdings in AutoZone by 1,199.3% during the third quarter. Numerai GP LLC now owns 1,754 shares of the company's stock worth $7,525,000 after buying an additional 1,619 shares in the last quarter. Jupiter Asset Management Ltd. purchased a new stake in AutoZone during the fourth quarter worth $1,808,000. ANTIPODES PARTNERS Ltd boosted its holdings in AutoZone by 185.7% during the third quarter. ANTIPODES PARTNERS Ltd now owns 640 shares of the company's stock worth $2,746,000 after buying an additional 416 shares in the last quarter. Finally, United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund boosted its holdings in AutoZone by 15.2% during the fourth quarter. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund now owns 14,224 shares of the company's stock worth $48,241,000 after buying an additional 1,882 shares in the last quarter. 92.74% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on AZO. Robert W. Baird lowered their price target on shares of AutoZone from $3,900.00 to $3,600.00 and set a "neutral" rating on the stock in a report on Wednesday, May 27th. TD Cowen reaffirmed a "buy" rating and set a $3,700.00 price objective on shares of AutoZone in a report on Thursday, June 4th. Citigroup decreased their price objective on shares of AutoZone from $4,300.00 to $3,700.00 and set a "buy" rating on the stock in a report on Wednesday, May 27th. Weiss Ratings raised shares of AutoZone from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, May 27th. Finally, Mizuho decreased 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 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 stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $4,040.87.

AutoZone Stock Up 0.7%

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 PEG ratio of 1.58 and a beta of 0.35. AutoZone, Inc. has a 52-week low of $2,928.11 and a 52-week high of $4,388.11. The firm's fifty day simple moving average is $3,355.86 and its two-hundred day simple moving average is $3,500.15.

AutoZone (NYSE:AZO - Get Free Report) last issued its earnings results on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, beating analysts' consensus estimates of $36.22 by $1.85. The business 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 company's quarterly revenue was up 8.4% compared to the same quarter last year. During the same period in the prior year, the business earned $35.36 earnings per share. On average, research analysts forecast that AutoZone, Inc. will post 150.45 EPS for the current year.

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

Insider Transactions at AutoZone

In other news, Director Earl G. Graves, Jr. sold 50 shares of the 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 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 filing with the Securities & Exchange Commission, which is available at this link. Also, Director Brian Hannasch bought 165 shares of AutoZone stock in a transaction dated Friday, May 29th. The stock was acquired at an average price of $2,987.00 per share, with a total value of $492,855.00. Following the completion of the transaction, the director directly owned 1,219 shares of the company's stock, valued at approximately $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. 2.60% of the stock is owned by corporate insiders.

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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