The Manufacturers Life Insurance Company Trims Stock Holdings in AutoZone, Inc. $AZO

Key Points

• Manulife reduced its AutoZone stake by 49.7% during the first quarter, selling 22,531 shares and retaining 22,803 shares valued at approximately $77 million.
• 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 company also authorized a $1.5 billion share-buyback program covering up to 3% of outstanding shares.
• Despite a recent share-price pullback, analysts maintain a consensus “Moderate Buy” rating with an average price target of $4,040.87; institutional investors own 92.74% of the stock.

The Manufacturers Life Insurance Company cut its holdings in shares of AutoZone, Inc. (NYSE:AZO - Free Report) by 49.7% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 22,803 shares of the company's stock after selling 22,531 shares during the period. The Manufacturers Life Insurance Company owned 0.14% of AutoZone worth $77,023,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Norges Bank acquired a new stake in AutoZone during the 4th quarter worth $939,205,000. Morgan Stanley increased its stake in AutoZone by 17.8% in the fourth 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 period. Northwestern Mutual Wealth Management Co. raised its holdings in shares of AutoZone by 387.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 77,792 shares of the company's stock valued at $263,832,000 after buying an additional 61,821 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in shares of AutoZone by 39.5% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 176,986 shares of the company's stock worth $584,730,000 after buying an additional 50,071 shares during the period. Finally, AQR Capital Management LLC boosted its stake in shares of AutoZone by 80.8% during the third quarter. AQR Capital Management LLC now owns 101,185 shares of the company's stock worth $432,059,000 after buying an additional 45,212 shares during the period. 92.74% of the stock is owned by institutional investors and hedge funds.

AutoZone Trading Up 0.9%

NYSE AZO opened at $3,147.02 on Thursday. The business's 50 day moving average is $3,085.63 and its two-hundred day moving average is $3,399.22. AutoZone, Inc. has a 12-month low of $2,902.20 and a 12-month high of $4,388.11. The stock has a market capitalization of $51.39 billion, a price-to-earnings ratio of 21.64, a PEG ratio of 1.58 and a beta of 0.33.

AutoZone (NYSE:AZO - Get Free Report) last issued its 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 negative return on equity of 80.35% and a net margin of 12.40%.The business had revenue of $4.84 billion during the quarter, compared to the consensus estimate of $4.86 billion. During the same period in the prior year, the business posted $35.36 EPS. The company's revenue for the quarter was up 8.4% on a year-over-year basis. Equities analysts forecast that AutoZone, Inc. will post 150.39 earnings per share for the current fiscal 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 outstanding shares. This buyback authorization authorizes the company to purchase up to 3% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on AZO. Jefferies Financial Group dropped their price target on AutoZone from $4,400.00 to $4,000.00 and set a "buy" rating on the stock in a research report on Wednesday, May 27th. Evercore reissued an "outperform" rating on shares of AutoZone in a report on Tuesday, May 26th. Mizuho decreased their price target 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. Weiss Ratings downgraded AutoZone from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, July 23rd. Finally, DA Davidson lowered their price objective on shares of AutoZone from $4,300.00 to $3,750.00 and set a "buy" 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 stock. According to MarketBeat, AutoZone presently has a consensus rating of "Moderate Buy" and an average price target of $4,040.87.

Insider Transactions at AutoZone

In other AutoZone news, Director Brian Hannasch acquired 165 shares of the business's stock in a transaction on Friday, May 29th. The stock was purchased at an average price 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 $3,641,153. The trade was a 15.65% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 2.60% of the company's stock.

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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