Strs Ohio Reduces Holdings in AutoZone, Inc. $AZO

Key Points

• Strs Ohio cut its AutoZone stake by 12.4% in the first quarter, selling 720 shares and leaving it with 5,065 shares valued at about $17.1 million.
• AutoZone reported stronger-than-expected earnings for the latest quarter, posting $38.07 per share versus estimates of $36.22, while revenue rose 8.4% year over year to $4.84 billion.
• The company announced a $1.5 billion share buyback program that can retire up to 3% of its stock, a move often seen as a sign management believes shares are undervalued.

Strs Ohio reduced its stake in AutoZone, Inc. (NYSE:AZO - Free Report) by 12.4% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 5,065 shares of the company's stock after selling 720 shares during the quarter. Strs Ohio's holdings in AutoZone were worth $17,108,000 as of its most recent SEC filing.

A number of other institutional investors also recently bought and sold shares of AZO. Boston Trust Walden Corp increased its stake in AutoZone by 1.8% during the 1st quarter. Boston Trust Walden Corp now owns 16,572 shares of the company's stock valued at $55,977,000 after purchasing an additional 292 shares in the last quarter. Keybank National Association OH increased its position in shares of AutoZone by 10.9% in the 1st quarter. Keybank National Association OH now owns 487 shares of the company's stock valued at $1,645,000 after acquiring an additional 48 shares during the period. Physician Wealth Advisors Inc. increased its position in shares of AutoZone by 15.6% in the 1st quarter. Physician Wealth Advisors Inc. now owns 52 shares of the company's stock valued at $174,000 after acquiring an additional 7 shares during the period. Root Financial Partners LLC raised its stake in AutoZone by 118.2% in the 1st quarter. Root Financial Partners LLC now owns 24 shares of the company's stock worth $81,000 after acquiring an additional 13 shares during the last quarter. Finally, USS Investment Management Ltd raised its stake in AutoZone by 63.9% in the 1st quarter. USS Investment Management Ltd now owns 46,842 shares of the company's stock worth $158,147,000 after acquiring an additional 18,257 shares during the last quarter. 92.74% of the stock is currently owned by institutional investors and hedge funds.

AutoZone Stock Performance

Shares of NYSE AZO opened at $3,158.56 on Friday. The company has a market capitalization of $51.58 billion, a PE ratio of 21.72, a price-to-earnings-growth ratio of 1.60 and a beta of 0.33. The company's fifty day moving average price is $3,248.95 and its 200 day moving average price is $3,444.46. AutoZone, Inc. has a 1 year low of $2,928.11 and a 1 year high of $4,388.11.

AutoZone (NYSE:AZO - Get Free Report) last released its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 earnings per share for the quarter, beating 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 analysts' expectations of $4.86 billion. During the same quarter in the previous year, the company earned $35.36 earnings per share. The firm's revenue for the quarter was up 8.4% on a year-over-year basis. On average, equities analysts expect that AutoZone, Inc. will post 150.51 EPS for the current year.

AutoZone declared that its board has authorized a share buyback program on Tuesday, June 16th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the company to purchase up to 3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research firms have weighed in on AZO. Truist Financial set a $3,700.00 price target on AutoZone in a research note on Wednesday, May 27th. Morgan Stanley reduced their price objective on AutoZone from $4,020.00 to $3,605.00 and set an "overweight" rating for the company in a research note on Wednesday, May 27th. Citigroup decreased their target price on AutoZone from $4,300.00 to $3,700.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. Argus upgraded AutoZone from a "hold" rating to a "buy" rating and set a $4,325.00 target price on the stock in a research report on Monday, March 9th. Finally, Evercore reiterated an "outperform" rating on shares of AutoZone in a report on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, AutoZone has a consensus rating of "Moderate Buy" and a consensus target price of $4,040.87.

Insider Activity

In other AutoZone news, Director Brian Hannasch acquired 165 shares of the company's stock in a transaction on Friday, May 29th. The shares were bought at an average cost of $2,987.00 per share, with a total value of $492,855.00. Following the completion of the acquisition, 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 purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Earl G. Graves, Jr. sold 50 shares of the company's stock in a transaction that occurred on 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 transaction, the director directly 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. Additional details regarding this sale are available in the official SEC disclosure. 2.60% of the stock is owned by insiders.

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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