California State Teachers Retirement System Buys 79,653,139 Shares of AutoZone, Inc. $AZO

Key Points

• CalSTRS reported a dramatic increase in its AutoZone stake, acquiring 79.65 million additional shares in the second quarter. The filing’s reported share count and valuation appear inconsistent with AutoZone’s market capitalization.
• Analysts remain broadly positive, with one Strong Buy, 20 Buy and six Hold ratings, producing a “Moderate Buy” consensus and an average price target of $3,999.04. Several firms nonetheless lowered their targets.
• AutoZone authorized a $1.5 billion share-repurchase program, while shares traded near $2,982, close to their one-year low. Separately, a company vice president sold 1,455 shares for approximately $4.5 million.

California State Teachers Retirement System increased its stake in shares of AutoZone, Inc. (NYSE:AZO - Free Report) by 320,651.9% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 79,677,980 shares of the company's stock after acquiring an additional 79,653,139 shares during the period. AutoZone comprises about 0.7% of California State Teachers Retirement System's portfolio, making the stock its 25th largest position. California State Teachers Retirement System owned about 487.92% of AutoZone worth $254,646,043,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in the stock. Turning Point Benefit Group Inc. acquired a new stake in AutoZone in the 3rd quarter valued at approximately $25,000. Transamerica Financial Advisors LLC raised its holdings in shares of AutoZone by 100.0% in the fourth quarter. Transamerica Financial Advisors LLC now owns 8 shares of the company's stock valued at $28,000 after purchasing an additional 4 shares during the last quarter. Edmond DE Rothschild Holding S.A. acquired a new stake in shares of AutoZone in the second quarter valued at approximately $29,000. MCF Advisors LLC raised its holdings in shares of AutoZone by 50.0% in the fourth quarter. MCF Advisors LLC now owns 9 shares of the company's stock valued at $31,000 after purchasing an additional 3 shares during the last quarter. Finally, Bard Associates Inc. bought a new stake in shares of AutoZone in the fourth quarter worth $31,000. 92.74% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Citigroup decreased their target price on shares of AutoZone from $4,300.00 to $3,700.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Mizuho cut their price target 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. Roth Capital reduced their price objective on shares of AutoZone from $4,526.00 to $4,023.00 and set a "buy" rating for the company in a research note on Wednesday, May 27th. Weiss Ratings cut AutoZone from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, July 23rd. Finally, Robert W. Baird decreased their price objective on AutoZone from $3,900.00 to $3,600.00 and set a "neutral" rating for the company in a report on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $3,999.04.

AutoZone Trading Down 0.0%

NYSE:AZO opened at $2,981.99 on Monday. AutoZone, Inc. has a 1-year low of $2,902.20 and a 1-year high of $4,388.11. The firm has a fifty day simple moving average of $3,036.29 and a 200 day simple moving average of $3,276.84. The stock has a market capitalization of $48.70 billion, a PE ratio of 20.50, a P/E/G ratio of 1.49 and a beta of 0.34.

AutoZone declared that its Board of Directors has authorized a share repurchase 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 shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at AutoZone

In other news, VP Dennis LeRiche sold 1,455 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $3,100.00, for a total value of $4,510,500.00. Following the sale, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.60% of the stock is owned by corporate insiders.

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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