Rakuten Investment Management Inc. Cuts Holdings in AutoZone, Inc. $AZO

Key Points

• Rakuten Investment Management cut its AutoZone stake by 93.7% in the fourth quarter, selling 32,691 shares and leaving it with 2,192 shares valued at about $7.49 million.
• AutoZone announced a $1.5 billion share repurchase program, authorizing it to buy back up to 3% of its stock, a move often seen as a sign management believes shares are undervalued.
• The company recently beat earnings expectations, posting $38.07 EPS versus the $36.22 consensus, while analysts currently rate the stock Moderate Buy with a consensus price target of $4,040.87.

Rakuten Investment Management Inc. decreased its holdings in shares of AutoZone, Inc. (NYSE:AZO - Free Report) by 93.7% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 2,192 shares of the company's stock after selling 32,691 shares during the quarter. Rakuten Investment Management Inc.'s holdings in AutoZone were worth $7,487,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Banco Bilbao Vizcaya Argentaria S.A. grew its stake in AutoZone by 6.6% in the third quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 4,966 shares of the company's stock valued at $21,315,000 after purchasing an additional 306 shares during the last quarter. Numerai GP LLC grew its stake in AutoZone by 1,199.3% in the third quarter. Numerai GP LLC now owns 1,754 shares of the company's stock valued at $7,525,000 after purchasing an additional 1,619 shares during the last quarter. Jupiter Asset Management Ltd. purchased a new position in AutoZone in the fourth quarter valued at about $1,808,000. ANTIPODES PARTNERS Ltd grew its stake in AutoZone by 185.7% in the third quarter. ANTIPODES PARTNERS Ltd now owns 640 shares of the company's stock valued at $2,746,000 after purchasing an additional 416 shares during the last quarter. Finally, United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund grew its stake in AutoZone by 15.2% in the fourth quarter. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund now owns 14,224 shares of the company's stock valued at $48,241,000 after purchasing an additional 1,882 shares during the last quarter. Hedge funds and other institutional investors own 92.74% of the company's stock.

Insider Activity at AutoZone

In related news, Director Brian Hannasch bought 165 shares of the company's stock in a transaction on Friday, May 29th. The shares were bought at an average price of $2,987.00 per share, with a total value of $492,855.00. Following the transaction, the director owned 1,219 shares in the company, valued at approximately $3,641,153. This trade represents a 15.65% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Earl G. Graves, Jr. sold 50 shares of the firm's stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $3,478.72, for a total value of $173,936.00. Following the completion of the transaction, the director owned 4,837 shares of the company's stock, valued at approximately $16,826,568.64. The trade was a 1.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.60% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several research firms have issued reports on AZO. Truist Financial set a $3,700.00 target price on AutoZone in a research note on Wednesday, May 27th. TD Cowen reiterated a "buy" rating and issued a $3,700.00 target price on shares of AutoZone in a research note on Thursday, June 4th. BMO Capital Markets decreased their price objective on AutoZone from $4,300.00 to $4,000.00 and set an "outperform" rating for the company in a report on Wednesday, May 27th. Barclays increased their price objective on AutoZone from $3,800.00 to $3,900.00 and gave the company an "overweight" rating in a report on Wednesday, March 4th. Finally, Mizuho decreased their price objective on AutoZone from $3,600.00 to $3,200.00 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 issued a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $4,040.87.

AutoZone Trading Up 0.7%

NYSE:AZO opened at $3,128.25 on Wednesday. The company has a market cap of $51.08 billion, a PE ratio of 21.51, a P/E/G ratio of 1.58 and a beta of 0.35. AutoZone, Inc. has a twelve month low of $2,928.11 and a twelve month high of $4,388.11. The company's 50 day moving average is $3,355.86 and its two-hundred day moving average is $3,500.15.

AutoZone (NYSE:AZO - Get Free Report) last released its earnings results on Tuesday, May 26th. The company reported $38.07 earnings per share for the quarter, topping the consensus estimate of $36.22 by $1.85. The company had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.86 billion. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. AutoZone's revenue was up 8.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $35.36 EPS. As a group, analysts expect that AutoZone, Inc. will post 150.45 EPS for the current fiscal year.

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

AutoZone Profile

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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