RB Capital Management LLC Takes Position in AutoZone, Inc. $AZO

Key Points

• RB Capital Management acquired 642 AutoZone shares worth approximately $2.05 million in the second quarter. Institutional investors collectively own 92.74% of the company.
• Analysts maintain a generally bullish outlook, with a consensus “Moderate Buy” rating and an average price target of $4,029.43, despite several recent target reductions.
• AutoZone reported quarterly EPS of $38.07, exceeding estimates, while revenue rose 8.4% year over year to $4.84 billion. The company also authorized a $1.5 billion share-repurchase program, though a vice president recently sold $4.51 million of stock.

RB Capital Management LLC acquired a new position in AutoZone, Inc. (NYSE:AZO - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 642 shares of the company's stock, valued at approximately $2,052,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Turning Point Benefit Group Inc. purchased a new stake in AutoZone in the third quarter valued at about $25,000. Torren Management LLC purchased a new stake in shares of AutoZone during the fourth quarter worth about $27,000. Transamerica Financial Advisors LLC increased its holdings in shares of AutoZone by 100.0% during the fourth quarter. Transamerica Financial Advisors LLC now owns 8 shares of the company's stock valued at $28,000 after acquiring an additional 4 shares in the last quarter. MCF Advisors LLC increased its holdings in shares of AutoZone by 50.0% during the fourth quarter. MCF Advisors LLC now owns 9 shares of the company's stock valued at $31,000 after acquiring an additional 3 shares in the last quarter. Finally, Bard Associates Inc. purchased a new position in shares of AutoZone in the 4th quarter valued at approximately $31,000. 92.74% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts recently commented on AZO shares. 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. JPMorgan Chase & Co. cut their price target on shares of AutoZone from $4,300.00 to $3,850.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 27th. Barclays decreased their price target on shares of AutoZone from $3,900.00 to $3,637.00 and set an "overweight" rating for the company in a report on Tuesday, August 4th. Jefferies Financial Group dropped 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 report on Wednesday, May 27th. Finally, BMO Capital Markets cut their target price on AutoZone from $4,300.00 to $4,000.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 27th. One 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. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $4,029.43.

AutoZone Stock Up 1.2%

Shares of NYSE AZO opened at $2,967.55 on Friday. AutoZone, Inc. has a 52 week low of $2,902.20 and a 52 week high of $4,388.11. The business's 50 day moving average price is $3,045.07 and its 200 day moving average price is $3,307.64. The firm has a market cap of $48.46 billion, a P/E ratio of 20.40, a P/E/G ratio of 1.49 and a beta of 0.33.

AutoZone (NYSE:AZO - Get Free Report) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $38.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $36.22 by $1.85. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. The company had revenue of $4.84 billion during the quarter, compared to analyst estimates of $4.86 billion. During the same period last year, the firm posted $35.36 EPS. AutoZone's revenue for the quarter was up 8.4% compared to the same quarter last year. As a group, research analysts expect that AutoZone, Inc. will post 150.39 earnings per share for the current year.

AutoZone announced that its board has approved a stock repurchase plan on Tuesday, June 16th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 3% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Insider Activity at AutoZone

In other news, VP Dennis W. Leriche sold 1,455 shares of the stock in a transaction 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 sale, the vice president owned 441 shares in the company, valued at $1,367,100. This represents a 76.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 2.60% of the stock is owned by company insiders.

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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