GAMMA Investing LLC Buys 69,146 Shares of AutoZone, Inc. $AZO

Key Points

• GAMMA Investing LLC dramatically increased its AutoZone stake by purchasing 69,146 shares during the third quarter, bringing its holdings to 69,354 shares worth approximately $2.13 million.
• AutoZone reported quarterly revenue of $6.59 billion, up 5.6% year over year, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $3,669.12.
• The company authorized a $1.5 billion share-repurchase program, allowing it to buy back up to 3% of outstanding shares; meanwhile, several analysts lowered their price targets following recent results.

GAMMA Investing LLC grew its stake in AutoZone, Inc. (NYSE:AZO - Free Report) by 33,243.3% in the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 69,354 shares of the company's stock after buying an additional 69,146 shares during the quarter. GAMMA Investing LLC owned 0.42% of AutoZone worth $2,126,000 as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of the stock. Bard Associates Inc. acquired a new position in AutoZone in the fourth quarter valued at approximately $31,000. Edmond DE Rothschild Holding S.A. acquired a new stake in shares of AutoZone during the 2nd quarter worth approximately $29,000. Asset Dedication LLC grew its stake in shares of AutoZone by 150.0% during the 1st quarter. Asset Dedication LLC now owns 10 shares of the company's stock worth $34,000 after purchasing an additional 6 shares during the period. Tacita Capital Inc purchased a new position in shares of AutoZone during the 2nd quarter valued at approximately $32,000. Finally, Burkett Financial Services LLC purchased a new position in shares of AutoZone during the 3rd quarter valued at approximately $31,000. Hedge funds and other institutional investors own 92.74% of the company's stock.

AutoZone Stock Up 0.9%

Shares of AZO opened at $2,935.62 on Friday. AutoZone, Inc. has a 52-week low of $2,730.65 and a 52-week high of $4,146.42. The firm's fifty day moving average is $2,945.42 and its two-hundred day moving average is $3,145.03. The stock has a market cap of $47.94 billion, a PE ratio of 19.21, a price-to-earnings-growth ratio of 1.35 and a beta of 0.40.

AutoZone (NYSE:AZO - Get Free Report) last issued its earnings results on Tuesday, September 22nd. The company reported $56.05 earnings per share for the quarter, topping the consensus estimate of $0.54 by $55.51. The business had revenue of $6.59 billion for the quarter, compared to analysts' expectations of $6.70 billion. AutoZone had a negative return on equity of 90.08% and a net margin of 12.65%. The business's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $48.71 EPS. As a group, research analysts anticipate that AutoZone, Inc. will post 171.50 earnings per share for the current year.

AutoZone declared that its Board of Directors has approved a share repurchase plan on Tuesday, June 16th that permits the company to repurchase $1.50 billion in shares. This buyback authorization permits the company to purchase up to 3% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts recently issued reports on the stock. BMO Capital Markets lowered their price target on shares of AutoZone from $4,000.00 to $3,500.00 and set an "outperform" rating on the stock in a report on Wednesday, September 23rd. Guggenheim decreased their price objective on shares of AutoZone from $4,000.00 to $3,750.00 and set a "buy" rating for the company in a research report on Wednesday, September 23rd. Wells Fargo & Company lowered their target price on shares of AutoZone from $4,150.00 to $3,500.00 and set an "overweight" rating on the stock in a research note on Thursday, September 10th. Morgan Stanley cut AutoZone from an "overweight" rating to a "market perform" rating in a research report on Tuesday, September 29th. Finally, Barclays reduced their price target on AutoZone from $3,637.00 to $3,400.00 and set an "overweight" rating for the company in a report on Wednesday, September 23rd. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, AutoZone has an average rating of "Moderate Buy" and an average price target of $3,669.12.

Insider Activity

In other news, VP Dennis LeRiche sold 1,455 shares of the company's stock in a transaction that occurred on 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 transaction, the vice president directly owned 441 shares in the company, valued at approximately $1,367,100. This represents a 76.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 2.60% of the company's stock.

About AutoZone

AutoZone, Inc is a specialty retailer of automotive replacement parts, accessories and maintenance products. The company serves do-it-yourself customers as well as professional automotive repair shops, offering products such as batteries, brakes, filters, engine components, tools, fluids and other vehicle parts.

In addition to its retail stores, AutoZone provides commercial sales and delivery services for professional repair businesses. The company also operates ALLDATA, which offers automotive diagnostic, repair and shop-management software and information services to repair professionals.

Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates primarily in the United States, with additional stores and operations in Mexico and Brazil.

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