Swedbank AB Sells 2,508 Shares of AutoZone, Inc. $AZO

Key Points

• Swedbank AB reduced its AutoZone stake by 7.5% in the first quarter, selling 2,508 shares and leaving it with 30,971 shares valued at about $104.6 million.
• AutoZone reported stronger-than-expected earnings for its latest quarter, posting $38.07 EPS versus $36.22 expected, while revenue rose 8.4% year over year to $4.84 billion.
• The company authorized a $1.5 billion share buyback, which could allow it to repurchase up to 3% of outstanding shares and signals management may view the stock as undervalued.

Swedbank AB lessened its holdings in shares of AutoZone, Inc. (NYSE:AZO - Free Report) by 7.5% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 30,971 shares of the company's stock after selling 2,508 shares during the quarter. Swedbank AB owned approximately 0.19% of AutoZone worth $104,613,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Brighton Jones LLC increased its position in AutoZone by 14.4% in the fourth quarter. Brighton Jones LLC now owns 111 shares of the company's stock worth $356,000 after buying an additional 14 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in shares of AutoZone during the 2nd quarter valued at about $356,000. Guggenheim Capital LLC grew its stake in shares of AutoZone by 3.8% during the 2nd quarter. Guggenheim Capital LLC now owns 248 shares of the company's stock valued at $921,000 after acquiring an additional 9 shares during the period. NewEdge Advisors LLC increased its holdings in AutoZone by 8.9% in the 2nd quarter. NewEdge Advisors LLC now owns 1,376 shares of the company's stock worth $5,110,000 after acquiring an additional 112 shares in the last quarter. Finally, Treasurer of the State of North Carolina increased its holdings in AutoZone by 52.3% in the 2nd quarter. Treasurer of the State of North Carolina now owns 11,763 shares of the company's stock worth $43,667,000 after acquiring an additional 4,039 shares in the last quarter. 92.74% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, Director Brian Hannasch bought 165 shares of the firm's stock in a transaction that occurred on Friday, May 29th. The shares were bought at an average cost of $2,987.00 per share, for a total transaction of $492,855.00. Following the completion of the transaction, the director owned 1,219 shares of the company's stock, valued at approximately $3,641,153. This represents a 15.65% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Earl G. Graves, Jr. sold 50 shares of the stock in a transaction that occurred on Friday, April 10th. The shares were 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. The disclosure for this sale is available in the SEC filing. Insiders own 2.60% of the company's stock.

AutoZone Stock Performance

AZO stock opened at $3,074.26 on Wednesday. The company's fifty day moving average price is $3,225.99 and its 200-day moving average price is $3,438.63. AutoZone, Inc. has a one year low of $2,928.11 and a one year high of $4,388.11. The company has a market capitalization of $50.20 billion, a PE ratio of 21.14, a price-to-earnings-growth ratio of 1.50 and a beta of 0.33.

AutoZone (NYSE:AZO - Get Free Report) last posted its earnings results on Tuesday, May 26th. The company reported $38.07 earnings per share 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 analysts' expectations of $4.86 billion. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. AutoZone's quarterly revenue was up 8.4% on a year-over-year basis. During the same period last year, the company posted $35.36 earnings per share. On average, research analysts predict that AutoZone, Inc. will post 150.51 EPS for the current fiscal year.

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

Analyst Ratings Changes

Several brokerages have weighed in on AZO. BNP Paribas Exane lowered their price target on shares of AutoZone from $4,478.00 to $3,979.00 and set an "outperform" rating on the stock in a report on Wednesday, May 27th. Roth Capital reduced their price objective on shares of AutoZone from $4,526.00 to $4,023.00 and set a "buy" rating for the company in a research note on Wednesday, May 27th. Citigroup decreased their price objective on shares of AutoZone from $4,300.00 to $3,700.00 and set a "buy" rating on the stock in a research report on Wednesday, May 27th. Oppenheimer restated an "outperform" rating and set a $4,300.00 target price (up from $4,150.00) on shares of AutoZone in a research note on Tuesday, March 10th. Finally, The Goldman Sachs Group dropped their target price on shares of AutoZone from $4,345.00 to $4,096.00 and set a "buy" 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 stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $4,040.87.

AutoZone Company 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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