QRG Capital Management Inc. Acquires 49,548 Shares of AutoZone, Inc. $AZO

Key Points

• QRG Capital Management increased its AutoZone stake by 26,077.9% in the second quarter, acquiring 49,548 additional shares and bringing its holdings to approximately $159 million. Institutional investors collectively own 92.74% of AutoZone.
• AutoZone reported fiscal fourth-quarter EPS of $56.05, ahead of expectations, while sales rose 5.6% to $6.59 billion. However, revenue missed estimates and same-store sales growth was modest, with some of the earnings benefit tied to tariff refunds and accounting factors.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $3,724.58, although several firms lowered their targets. Shares recently traded at $2,848.16, and the company has authorized a $1.5 billion share-repurchase program.

QRG Capital Management Inc. lifted its stake in AutoZone, Inc. (NYSE:AZO - Free Report) by 26,077.9% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 49,738 shares of the company's stock after acquiring an additional 49,548 shares during the period. AutoZone makes up 1.1% of QRG Capital Management Inc.'s portfolio, making the stock its 15th largest holding. QRG Capital Management Inc. owned approximately 0.30% of AutoZone worth $158,960,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of AZO. BlackRock Inc. bought a new stake in AutoZone in the 2nd quarter valued at $3,938,566,000. Norges Bank bought a new position in shares of AutoZone during the 4th quarter worth about $939,205,000. First Manhattan CO. LLC. increased its holdings in shares of AutoZone by 2.7% during the 4th quarter. First Manhattan CO. LLC. now owns 261,314 shares of the company's stock worth $886,246,000 after purchasing an additional 6,765 shares during the period. Envestnet Portfolio Solutions Inc. raised its position in shares of AutoZone by 247,417.8% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 249,993 shares of the company's stock valued at $798,963,000 after buying an additional 249,892 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of AutoZone during the second quarter valued at about $572,885,000. Institutional investors own 92.74% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Barclays decreased their target price on AutoZone from $3,637.00 to $3,400.00 and set an "overweight" rating on the stock in a research report on Wednesday. Robert W. Baird reduced their price objective on AutoZone from $3,600.00 to $3,400.00 and set a "neutral" rating for the company in a research report on Wednesday. DA Davidson decreased their price objective on AutoZone from $3,750.00 to $3,500.00 and set a "buy" rating on the stock in a report on Wednesday. Roth Capital lowered their price objective on AutoZone from $4,023.00 to $3,850.00 and set a "buy" rating on the stock in a research report on Wednesday. Finally, Raymond James Financial cut their target price on AutoZone from $4,000.00 to $3,700.00 and set a "strong-buy" rating for the company in a research note on Wednesday. One 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 data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $3,724.58.

Key Stories Impacting AutoZone

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone reported fiscal fourth-quarter diluted EPS of $56.05, up from $48.71 a year earlier and above analyst expectations. Net sales rose 5.6% to approximately $6.6 billion, while operating profit increased 10.1% to $1.3 billion. AutoZone fourth-quarter results
• Positive Sentiment: Gross margin improved to 53.3%, helped by tariff refunds and a favorable non-cash LIFO comparison. The company also repurchased about $697.5 million of stock and opened 175 stores during the quarter, supporting per-share results and its long-term expansion strategy. AutoZone earnings and margin gains
• Positive Sentiment: Management said AutoZone is well positioned for sales growth in fiscal 2027, with commercial sales and international operations providing momentum. International same-store sales increased 10.7%, and investors have viewed the company as gaining market share while expanding its store network. Why AutoZone stock rallied
• Neutral Sentiment: Analysts remain broadly constructive, but several firms lowered their targets after the report: Roth Capital cut its target to $3,850, while BMO Capital Markets and DA Davidson reduced theirs to $3,500. Raymond James, Roth and DA Davidson retained bullish ratings, while Mizuho and Baird maintained neutral ratings. AutoZone analyst target changes
• Negative Sentiment: Revenue fell short of consensus estimates, and same-store sales growth was modest at 1.5% on a constant-currency basis domestically and internationally combined. Investors are concerned that the earnings beat was partly driven by tariff refunds and accounting benefits rather than solely by underlying demand. AutoZone earnings beat and sales miss

Insider Activity

In other news, VP Dennis 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 value of $4,510,500.00. Following the completion of 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 position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 2.60% of the company's stock.

AutoZone Trading Down 1.6%

NYSE AZO traded down $46.57 on Wednesday, reaching $2,848.16. The company's stock had a trading volume of 652,550 shares, compared to its average volume of 261,270. AutoZone, Inc. has a 52 week low of $2,764.88 and a 52 week high of $4,332.68. The firm has a market cap of $46.51 billion, a PE ratio of 19.58, a price-to-earnings-growth ratio of 1.41 and a beta of 0.34. The business has a 50-day moving average price of $2,986.72 and a 200 day moving average price of $3,205.00.

AutoZone (NYSE:AZO - Get Free Report) last announced its quarterly earnings results on Tuesday, September 22nd. The company reported $56.05 EPS for the quarter, topping analysts' consensus estimates of $0.54 by $55.51. The firm had revenue of $6.59 billion during the quarter, compared to analysts' expectations of $6.70 billion. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. The company's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter last year, the company earned $48.71 earnings per share. Analysts anticipate that AutoZone, Inc. will post 150.61 earnings per share for the current fiscal year.

AutoZone declared that its Board of Directors has initiated a share buyback plan 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 plans are typically an indication that the company's board believes its shares are undervalued.

AutoZone Profile

AutoZone, Inc is a retailer and distributor of automotive replacement parts, accessories, and maintenance products. The company serves do-it-yourself customers, professional service technicians, and commercial repair businesses through its stores, distribution network, and online platform.

Its product offerings include replacement parts such as batteries, brakes, engine components, and ignition products, along with tools, fluids, filters, and other automotive accessories. AutoZone also provides services such as parts lookup, diagnostic assistance, battery testing and charging, and loaner tools for eligible repairs.

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

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