AutoZone, Inc. $AZO Stock Position Lowered by Canoe Financial LP

Key Points

• Canoe Financial LP reduced its AutoZone stake by 10% in the first quarter, selling 4,930 shares and ending with 44,461 shares valued at about $150.2 million.
• Analysts remain broadly positive on AutoZone, with a consensus rating of “Moderate Buy” and an average price target of $4,040.87, though several firms recently lowered their targets.
• AutoZone reported solid quarterly results and approved a buyback, posting EPS of $38.07 versus $36.22 expected and authorizing a $1.5 billion share repurchase program, equal to about 3% of outstanding shares.

Canoe Financial LP decreased its position in AutoZone, Inc. (NYSE:AZO - Free Report) by 10.0% in the first quarter, according to its most recent 13F filing with the SEC. The firm owned 44,461 shares of the company's stock after selling 4,930 shares during the period. AutoZone comprises about 2.0% of Canoe Financial LP's investment portfolio, making the stock its 21st biggest holding. Canoe Financial LP owned 0.27% of AutoZone worth $150,179,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of AutoZone in the fourth quarter valued at $939,205,000. Morgan Stanley grew its holdings in shares of AutoZone by 17.8% during the fourth quarter. Morgan Stanley now owns 492,794 shares of the company's stock valued at $1,671,323,000 after buying an additional 74,555 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of AutoZone by 387.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 77,792 shares of the company's stock valued at $263,832,000 after buying an additional 61,821 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in AutoZone by 39.5% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 176,986 shares of the company's stock valued at $584,730,000 after buying an additional 50,071 shares during the period. Finally, AQR Capital Management LLC lifted its stake in 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. 92.74% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. Roth Mkm decreased their price objective on AutoZone from $4,526.00 to $4,023.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Robert W. Baird dropped their target price on AutoZone from $3,900.00 to $3,600.00 and set a "neutral" rating on the stock in a report on Wednesday, May 27th. JPMorgan Chase & Co. reduced their price target on shares of 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. Mizuho decreased their price target on shares of AutoZone from $3,600.00 to $3,200.00 and set a "neutral" rating for the company in a report on Wednesday, May 27th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $4,300.00 price objective (up from $4,150.00) on shares of AutoZone in a research report on Tuesday, March 10th. One 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's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $4,040.87.

AutoZone Trading Down 0.0%

AZO opened at $3,127.52 on Monday. The stock has a fifty day moving average price of $3,288.33 and a 200 day moving average price of $3,454.36. AutoZone, Inc. has a 1 year low of $2,928.11 and a 1 year high of $4,388.11. The stock has a market cap of $51.07 billion, a price-to-earnings ratio of 21.50, a PEG ratio of 1.59 and a beta of 0.35.

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

AutoZone declared that its Board of Directors has approved a stock buyback program on Tuesday, June 16th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 3% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

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 shares were sold at an average price of $3,478.72, for a total transaction of $173,936.00. Following the transaction, 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Brian Hannasch bought 165 shares of AutoZone stock in a transaction on 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 purchase, 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 SEC filing for this purchase provides additional information. Insiders own 2.60% of the company's stock.

About AutoZone

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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