AutoZone (NYSE:AZO) Hits New 12-Month Low - Here's What Happened

Key Points

• AutoZone shares fell to a new 52-week low of $2,899.88, closing near $2,912, below both its 50-day and 200-day moving averages.
• Analysts lowered several price targets, but sentiment remains positive: AutoZone has a consensus “Moderate Buy” rating and an average price target of $3,999.04.
• The company authorized a $1.5 billion stock-repurchase program, while institutional investors own 92.74% of shares; an AutoZone vice president also sold most of his holdings in August.

AutoZone, Inc. (NYSE:AZO - Get Free Report)'s stock price hit a new 52-week low on Wednesday . The company traded as low as $2,899.88 and last traded at $2,912.1630, with a volume of 17954 shares trading hands. The stock had previously closed at $2,951.61.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. JPMorgan Chase & Co. reduced their target price on shares of AutoZone from $4,300.00 to $3,850.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 27th. Roth Capital decreased their price objective on shares of AutoZone from $4,526.00 to $4,023.00 and set a "buy" rating on the stock in a research note on Wednesday, May 27th. Evercore reaffirmed an "outperform" rating on shares of AutoZone in a research note on Tuesday, May 26th. BMO Capital Markets reduced their target price on shares of AutoZone from $4,300.00 to $4,000.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 27th. Finally, TD Cowen decreased their price objective on shares of AutoZone from $3,700.00 to $3,500.00 and set a "buy" rating for the company in a report on Monday, August 31st. One investment analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, AutoZone presently has a consensus rating of "Moderate Buy" and a consensus price target of $3,999.04.

AutoZone Price Performance

The firm has a 50-day moving average of $3,028.16 and a 200 day moving average of $3,265.89. The stock has a market capitalization of $47.29 billion, a price-to-earnings ratio of 19.93, a PEG ratio of 1.49 and a beta of 0.34.

AutoZone declared that its board has approved a stock repurchase plan on Tuesday, June 16th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 3% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other AutoZone news, VP Dennis LeRiche sold 1,455 shares of the firm's stock in a transaction that occurred on 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 owned 441 shares in the company, valued at $1,367,100. This trade represents a 76.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 2.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On AutoZone

Hedge funds and other institutional investors have recently modified their holdings of the company. California State Teachers Retirement System boosted its position in shares of AutoZone by 320,651.9% during the second quarter. California State Teachers Retirement System now owns 79,677,980 shares of the company's stock valued at $254,646,043,000 after buying an additional 79,653,139 shares during the last quarter. BlackRock Inc. bought a new stake in shares of AutoZone in the 2nd quarter worth $3,938,566,000. Norges Bank purchased a new stake in shares of AutoZone in the fourth quarter valued at about $939,205,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of AutoZone during the second quarter valued at about $572,885,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in AutoZone by 11,577.6% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 141,066 shares of the company's stock worth $450,838,000 after purchasing an additional 139,858 shares during the last quarter. Institutional investors own 92.74% of the company's stock.

AutoZone Company Profile

AutoZone, Inc is a retailer and distributor of automotive replacement parts and accessories. The company serves do-it-yourself customers, professional repair shops and commercial customers through its stores, websites and commercial sales programs.

Its merchandise includes replacement parts, maintenance products, accessories, tools and diagnostic equipment for cars, sport utility vehicles, vans and light trucks. AutoZone also provides services such as loaning diagnostic and specialty tools, testing batteries and electrical systems, and offering parts-ordering and delivery support for professional customers.

Founded in 1979 as Auto Shack, the company is headquartered in Memphis, Tennessee.

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