JPMorgan Chase & Co. Has Lowered Expectations for AutoZone (NYSE:AZO) Stock Price

Key Points

• JPMorgan Chase & Co. cut its price target on AutoZone from $4,300 to $3,850 while keeping an overweight rating. The new target still implies about 26% upside from the prior close.
• AutoZone's stock fell to $3,053.75 on Wednesday, near its 52-week low of $3,001, and traded well below both its 50-day and 200-day moving averages. Trading volume was also far below average.
• Despite the analyst caution, AutoZone recently beat quarterly EPS estimates with $38.07 per share and posted 8.4% revenue growth year over year to $4.84 billion. Analysts still generally view the stock favorably, with a consensus Moderate Buy rating.

AutoZone (NYSE:AZO - Get Free Report) had its target price reduced by equities research analysts at JPMorgan Chase & Co. from $4,300.00 to $3,850.00 in a note issued to investors on Wednesday,MarketScreener reports. The brokerage currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price target would indicate a potential upside of 26.07% from the company's previous close.

A number of other brokerages also recently issued reports on AZO. Raymond James Financial reissued a "strong-buy" rating on shares of AutoZone in a research report on Wednesday. Oppenheimer restated an "outperform" rating and issued a $4,300.00 price objective (up from $4,150.00) on shares of AutoZone in a report on Tuesday, March 10th. Argus upgraded shares of AutoZone from a "hold" rating to a "buy" rating and set a $4,325.00 target price for the company in a report on Monday, March 9th. Barclays raised their price target on AutoZone from $3,800.00 to $3,900.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 4th. Finally, Guggenheim cut their price objective on AutoZone from $4,400.00 to $4,000.00 and set a "buy" rating on the stock in a report on Wednesday. One 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 stock. Based on data from MarketBeat.com, AutoZone has an average rating of "Moderate Buy" and an average target price of $4,099.83.

AutoZone Stock Performance

Shares of NYSE AZO traded down $46.36 during trading on Wednesday, hitting $3,053.75. 20,426 shares of the company were exchanged, compared to its average volume of 191,540. The company has a fifty day moving average price of $3,448.20 and a 200-day moving average price of $3,579.65. The firm has a market capitalization of $50.32 billion, a PE ratio of 21.39, a P/E/G ratio of 1.74 and a beta of 0.43. AutoZone has a 12-month low of $3,001.00 and a 12-month high of $4,388.11.

AutoZone (NYSE:AZO - Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $36.22 by $1.85. AutoZone had a net margin of 12.47% and a negative return on equity of 72.31%. The firm had revenue of $4.84 billion during the quarter, compared to analyst estimates of $4.86 billion. During the same quarter in the prior year, the firm posted $35.36 earnings per share. AutoZone's quarterly revenue was up 8.4% on a year-over-year basis. Research analysts anticipate that AutoZone will post 149.16 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, 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 completion of the transaction, the director directly owned 4,837 shares of the company's stock, valued at $16,826,568.64. This represents a 1.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 2.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in AutoZone by 1.5% in the third quarter. Vanguard Group Inc. now owns 1,797,548 shares of the company's stock valued at $7,711,912,000 after acquiring an additional 26,544 shares in the last quarter. Morgan Stanley lifted its holdings in shares of AutoZone by 17.8% in 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. Price T Rowe Associates Inc. MD lifted its holdings in shares of AutoZone by 1.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 387,042 shares of the company's stock valued at $1,312,654,000 after purchasing an additional 7,390 shares during the last quarter. Norges Bank acquired a new stake in shares of AutoZone in the 4th quarter valued at about $939,205,000. Finally, PineStone Asset Management Inc. grew its stake in AutoZone by 1.5% during the 4th quarter. PineStone Asset Management Inc. now owns 269,173 shares of the company's stock worth $912,900,000 after buying an additional 3,868 shares during the last quarter. 92.74% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about AutoZone

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone reported fiscal Q3 EPS of $38.07, ahead of consensus estimates, and revenue rose 8.4% year over year to $4.84 billion, with same-store sales up 3.9% companywide and 4.1% domestically. Article Title
• Positive Sentiment: Domestic growth and commercial expansion remained strong, and management said the repair business stayed resilient even as consumers cut back elsewhere. Article Title
• Neutral Sentiment: AutoZone announced a partnership with Google Cloud, which could support longer-term operational and digital initiatives, but it was not the main driver of the stock move. Article Title
• Neutral Sentiment: Several analysts cut price targets after the report, including BMO Capital Markets to $4,000 and Robert W. Baird to $3,600, signaling some caution but still implying upside from recent levels. Article Title
• Negative Sentiment: The stock fell sharply after the company missed revenue expectations, and multiple reports pointed to margin pressure, including a non-cash LIFO impact, as well as softer international results. Article Title

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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