Empowered Funds LLC Invests $11.43 Million in AutoZone, Inc. $AZO

Key Points

• Empowered Funds LLC initiated an approximately $11.43 million position in AutoZone by purchasing 3,575 shares during the second quarter. Institutional investors collectively own 92.74% of the company.
• AutoZone authorized a $1.5 billion share-buyback program, allowing repurchases of up to 3% of outstanding shares, while the stock recently traded near $2,967.55—well below its 12-month high of $4,388.11.
• Analysts maintain a generally positive outlook, with one Strong Buy, 20 Buy, and six Hold ratings; the stock has a MarketBeat consensus of “Moderate Buy” and an average price target of $4,029.43.

Empowered Funds LLC bought a new position in shares of AutoZone, Inc. (NYSE:AZO - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 3,575 shares of the company's stock, valued at approximately $11,425,000.

Several other hedge funds have also recently added to or reduced their stakes in AZO. BlackRock Inc. acquired a new stake in shares of AutoZone in the 2nd quarter valued at $3,938,566,000. Morgan Stanley grew its stake in shares of AutoZone by 17.8% during the fourth quarter. Morgan Stanley now owns 492,794 shares of the company's stock worth $1,671,323,000 after purchasing an additional 74,555 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of AutoZone by 1.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 387,042 shares of the company's stock worth $1,312,654,000 after purchasing an additional 7,390 shares in the last quarter. Norges Bank purchased a new position in AutoZone in the fourth quarter valued at $939,205,000. Finally, First Manhattan CO. LLC. increased its holdings in AutoZone by 2.7% in the fourth quarter. First Manhattan CO. LLC. now owns 261,314 shares of the company's stock valued at $886,246,000 after buying an additional 6,765 shares during the last quarter. Institutional investors and hedge funds own 92.74% of the company's stock.

Insiders Place Their Bets

In other AutoZone news, VP Dennis W. Leriche sold 1,455 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $3,100.00, for a total transaction of $4,510,500.00. Following the completion of the sale, the vice president directly owned 441 shares of the company's stock, valued at approximately $1,367,100. This trade represents a 76.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 2.60% of the company's stock.

AutoZone Price Performance

AZO stock opened at $2,967.55 on Friday. The company has a fifty day moving average price of $3,045.07 and a 200 day moving average price of $3,307.64. AutoZone, Inc. has a 12 month low of $2,902.20 and a 12 month high of $4,388.11. The company has a market cap of $48.46 billion, a price-to-earnings ratio of 20.40, a price-to-earnings-growth ratio of 1.50 and a beta of 0.33.

AutoZone announced that its Board of Directors has authorized a stock buyback program on Tuesday, June 16th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the company to repurchase up to 3% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts have issued reports on AZO shares. Raymond James Financial reaffirmed a "strong-buy" rating on shares of AutoZone in a report on Wednesday, May 27th. BMO Capital Markets dropped their price objective on AutoZone from $4,300.00 to $4,000.00 and set an "outperform" rating on the stock in a report on Wednesday, May 27th. Barclays cut their target price on 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. DA Davidson lowered their price target on AutoZone from $4,300.00 to $3,750.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. Finally, Mizuho dropped 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 note on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, AutoZone currently has an average rating of "Moderate Buy" and an average target price of $4,029.43.

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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