The Manufacturers Life Insurance Company Buys New Position in AutoZone, Inc. $AZO

Key Points

• The Manufacturers Life Insurance Company acquired 19,577 AutoZone shares worth approximately $62.6 million in the second quarter, while institutional investors collectively owned 92.74% of the company.
• AutoZone reported quarterly EPS of $38.07, beating estimates of $36.22, while revenue rose 8.4% year over year to $4.84 billion. The board also authorized a $1.5 billion share-repurchase plan.
• Shares opened at $3,023.78, well below their 52-week high of $4,388.11. Analysts maintain a “Moderate Buy” consensus with an average price target of $4,029.43, despite several recent target reductions.

The Manufacturers Life Insurance Company acquired a new position in shares of AutoZone, Inc. (NYSE:AZO - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 19,577 shares of the company's stock, valued at approximately $62,567,000. The Manufacturers Life Insurance Company owned 0.12% of AutoZone as of its most recent SEC filing.

Other hedge funds also recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of AutoZone in the 2nd quarter worth approximately $3,938,566,000. Norges Bank purchased a new position in AutoZone during the 4th quarter valued at about $939,205,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of AutoZone in the 2nd quarter worth approximately $572,885,000. Bank of New York Mellon Corp purchased a new stake in shares of AutoZone in the second quarter worth $335,157,000. Finally, Morgan Stanley grew its position in AutoZone by 17.8% during the 4th quarter. Morgan Stanley now owns 492,794 shares of the company's stock valued at $1,671,323,000 after purchasing an additional 74,555 shares during the last quarter. Institutional investors own 92.74% of the company's stock.

AutoZone Stock Performance

NYSE:AZO opened at $3,023.78 on Wednesday. The stock's fifty day moving average is $3,050.91 and its 200 day moving average is $3,319.59. AutoZone, Inc. has a fifty-two week low of $2,902.20 and a fifty-two week high of $4,388.11. The firm has a market capitalization of $49.38 billion, a PE ratio of 20.79, a PEG ratio of 1.53 and a beta of 0.33.

AutoZone (NYSE:AZO - Get Free Report) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, topping the consensus estimate 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 in the previous year, the firm earned $35.36 earnings per share. AutoZone's quarterly revenue was up 8.4% compared to the same quarter last year. Equities analysts forecast that AutoZone, Inc. will post 150.39 EPS for the current year.

AutoZone announced that its board has authorized a stock repurchase plan 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 plans are usually a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In related news, VP Dennis W. Leriche sold 1,455 shares of the stock in a transaction dated 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 directly owned 441 shares of the company's stock, valued at $1,367,100. This represents a 76.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Brian Hannasch acquired 165 shares of the firm's stock in a transaction on Friday, May 29th. The stock was purchased at an average cost of $2,987.00 per share, with a total value of $492,855.00. Following the purchase, the director owned 1,219 shares of the company's stock, valued at $3,641,153. The trade was a 15.65% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 2.60% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently weighed in on AZO. Mizuho decreased their price objective on shares of AutoZone from $3,600.00 to $3,200.00 and set a "neutral" rating for the company in a report on Wednesday, May 27th. Robert W. Baird decreased their price objective on AutoZone from $3,900.00 to $3,600.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 27th. Morgan Stanley lowered their target price on shares of AutoZone from $4,020.00 to $3,605.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 27th. Evercore restated an "outperform" rating on shares of AutoZone in a research note on Tuesday, May 26th. Finally, BNP Paribas Exane cut their price target on AutoZone from $4,478.00 to $3,979.00 and set an "outperform" rating for the company in a report on Wednesday, May 27th. One equities research 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 company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $4,029.43.

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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