Hsbc Holdings PLC Has $118.71 Million Stake in AutoZone, Inc. $AZO

Key Points

• HSBC Holdings reduced its AutoZone stake by 3.8% in the second quarter, selling 1,460 shares and retaining 37,198 shares valued at approximately $118.7 million. Institutional investors collectively own 92.74% of the company.
• Analysts maintain a broadly positive outlook, with one Strong Buy, 20 Buy and six Hold ratings. AutoZone has a consensus rating of “Moderate Buy” and an average price target of $4,029.43.
• AutoZone exceeded quarterly EPS estimates, reporting $38.07 versus the $36.22 consensus, while revenue increased 8.4% year over year. The company also authorized a $1.5 billion share repurchase program, covering up to 3% of outstanding shares.

Hsbc Holdings PLC reduced its stake in shares of AutoZone, Inc. (NYSE:AZO - Free Report) by 3.8% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 37,198 shares of the company's stock after selling 1,460 shares during the quarter. Hsbc Holdings PLC owned about 0.23% of AutoZone worth $118,712,000 at the end of the most recent quarter.

Other institutional investors have also recently bought and sold shares of the company. Palisade Capital Management LP acquired a new position in AutoZone during the 2nd quarter worth $428,000. Canada Pension Plan Investment Board acquired a new position in shares of AutoZone during the second quarter valued at $129,915,000. Osterweis Capital Management Inc. acquired a new position in shares of AutoZone during the second quarter valued at $39,991,000. Legal & General Group Plc bought a new position in AutoZone in the second quarter valued at about $319,156,000. Finally, The Manufacturers Life Insurance Company acquired a new stake in AutoZone in the second quarter worth about $62,567,000. Institutional investors own 92.74% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on AZO. Evercore restated an "outperform" rating on shares of AutoZone in a research report on Tuesday, May 26th. Jefferies Financial Group dropped their price target on shares of AutoZone from $4,400.00 to $4,000.00 and set a "buy" rating for the company in a research note on Wednesday, May 27th. Guggenheim reduced their price objective on shares of AutoZone from $4,400.00 to $4,000.00 and set a "buy" rating on the stock in a research note on Wednesday, May 27th. Truist Financial set a $3,700.00 target price on shares of AutoZone in a research report on Wednesday, May 27th. Finally, TD Cowen reissued a "buy" rating and issued a $3,700.00 price target on shares of AutoZone in a research note on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, AutoZone presently has an average rating of "Moderate Buy" and a consensus target price of $4,029.43.

AutoZone Stock Performance

AZO opened at $3,023.78 on Wednesday. The firm's fifty day moving average is $3,050.91 and its two-hundred day moving average is $3,319.59. The firm has a market cap of $49.38 billion, a PE ratio of 20.79, a price-to-earnings-growth ratio of 1.53 and a beta of 0.33. AutoZone, Inc. has a twelve month low of $2,902.20 and a twelve 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 (EPS) for the quarter, beating the consensus estimate of $36.22 by $1.85. The company had revenue of $4.84 billion during the quarter, compared to analyst estimates of $4.86 billion. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. The firm's revenue was up 8.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $35.36 EPS. Equities analysts forecast that AutoZone, Inc. will post 150.39 EPS for the current fiscal year.

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

Insider Activity

In other AutoZone news, Director Brian Hannasch bought 165 shares of the firm's stock in a transaction 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 completion of the purchase, the director owned 1,219 shares in the company, valued at approximately $3,641,153. The trade was a 15.65% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Dennis W. Leriche sold 1,455 shares of the firm'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 sale, 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. Additional details regarding this sale are available in the official SEC disclosure. 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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