Bank of Nova Scotia Makes New Investment in AutoZone, Inc. $AZO

Key Points

• Bank of Nova Scotia acquired 8,113 AutoZone shares worth approximately $25.9 million in the second quarter. Institutional investors collectively own 92.74% of the company.
• AutoZone reported quarterly earnings of $38.07 per share, exceeding estimates of $36.22, while revenue rose 8.4% year over year to $4.84 billion. The board also authorized a $1.5 billion share buyback.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $4,029.43, although several firms recently reduced their targets.

Bank of Nova Scotia purchased a new position in AutoZone, Inc. (NYSE:AZO - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm purchased 8,113 shares of the company's stock, valued at approximately $25,935,000.

Several other hedge funds have also made changes to their positions in AZO. Turning Point Benefit Group Inc. purchased a new stake in AutoZone in the third quarter worth about $25,000. Torren Management LLC acquired a new stake in shares of AutoZone in the 4th quarter worth $27,000. Transamerica Financial Advisors LLC boosted its holdings in 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 acquiring an additional 4 shares in the last quarter. Edmond DE Rothschild Holding S.A. purchased a new stake in AutoZone during the 2nd quarter worth approximately $29,000. Finally, MCF Advisors LLC grew its holdings in shares of AutoZone by 50.0% during the fourth quarter. MCF Advisors LLC now owns 9 shares of the company's stock valued at $31,000 after buying an additional 3 shares during the last quarter. 92.74% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director Brian Hannasch bought 165 shares of the stock in a transaction that occurred on Friday, May 29th. The stock was purchased at an average cost of $2,987.00 per share, with a total value of $492,855.00. Following the purchase, the director directly owned 1,219 shares of the company's stock, valued at $3,641,153. This trade represents a 15.65% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Dennis W. Leriche sold 1,455 shares of the business's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $3,100.00, for a total value of $4,510,500.00. Following the transaction, the vice president directly owned 441 shares of the company's stock, valued at approximately $1,367,100. This represents a 76.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.60% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

AZO has been the topic of several research reports. DA Davidson cut their price target on shares of AutoZone from $4,300.00 to $3,750.00 and set a "buy" rating on the stock in a report on Wednesday, May 27th. Evercore reaffirmed an "outperform" rating on shares of AutoZone in a report on Tuesday, May 26th. Robert W. Baird decreased their price objective 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. Roth Capital lowered their price target on AutoZone from $4,526.00 to $4,023.00 and set a "buy" rating on the stock in a research note on Wednesday, May 27th. Finally, Barclays lowered their price target on shares of AutoZone from $3,900.00 to $3,637.00 and set an "overweight" rating on the stock in a research report on Tuesday, August 4th. One investment 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. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $4,029.43.

AutoZone Trading Up 0.1%

Shares of AZO opened at $2,960.64 on Monday. The firm has a market cap of $48.35 billion, a P/E ratio of 20.36, a price-to-earnings-growth ratio of 1.50 and a beta of 0.33. The company's 50-day moving average price is $3,054.94 and its 200 day moving average price is $3,329.19. AutoZone, Inc. has a 12-month low of $2,902.20 and a 12-month high of $4,388.11.

AutoZone (NYSE:AZO - Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $38.07 earnings per share for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $4.86 billion. During the same period last year, the business earned $35.36 earnings per share. The business's revenue for the quarter was up 8.4% on a year-over-year basis. Equities research analysts forecast that AutoZone, Inc. will post 150.39 earnings per share for the current year.

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

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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