AutoZone (NYSE:AZO) Hits New 52-Week Low - Here's Why

Key Points

• AutoZone shares hit a new 52-week low, falling to $2,860.13 from a prior close of $2,965.52, with the stock trading below both its 50-day and 200-day moving averages.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $3,946.96, despite several firms recently lowering their targets.
• AutoZone authorized a $1.5 billion stock repurchase program covering up to 3% of outstanding shares, while a company vice president sold $4.51 million worth of shares.

AutoZone, Inc. (NYSE:AZO - Get Free Report)'s stock price hit a new 52-week low on Tuesday . The company traded as low as $2,860.13 and last traded at $2,866.0370, with a volume of 146417 shares. The stock had previously closed at $2,965.52.

Analysts Set New Price Targets

Several research firms have issued reports on AZO. Morgan Stanley dropped their price target on AutoZone from $4,020.00 to $3,605.00 and set an "overweight" rating on the stock in a report on Wednesday, May 27th. UBS Group reissued a "buy" rating on shares of AutoZone in a research note on Tuesday. Truist Financial set a $3,700.00 target price on AutoZone in a report on Wednesday, May 27th. Robert W. Baird cut their target price on AutoZone from $3,900.00 to $3,600.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 27th. Finally, BMO Capital Markets cut their target price on AutoZone from $4,300.00 to $4,000.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 27th. 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. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $3,946.96.

AutoZone Price Performance

The firm has a market cap of $46.70 billion, a price-to-earnings ratio of 19.65, a price-to-earnings-growth ratio of 1.44 and a beta of 0.34. The stock's fifty day moving average price is $3,011.00 and its 200-day moving average price is $3,241.45.

AutoZone declared that its board has authorized a stock repurchase program on Tuesday, June 16th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 3% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board believes its stock is undervalued.

Insider Transactions at AutoZone

In other news, VP Dennis LeRiche sold 1,455 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $3,100.00, for a total value of $4,510,500.00. Following the completion of the sale, the vice president owned 441 shares in the company, valued at $1,367,100. This represents a 76.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. MCF Advisors LLC lifted its position in AutoZone by 50.0% in the 4th quarter. MCF Advisors LLC now owns 9 shares of the company's stock valued at $31,000 after acquiring an additional 3 shares in the last quarter. Arrowroot Family Office LLC increased its holdings in AutoZone by 5.4% during the 4th quarter. Arrowroot Family Office LLC now owns 59 shares of the company's stock worth $200,000 after purchasing an additional 3 shares in the last quarter. Pure Financial Advisors LLC grew its holdings in shares of AutoZone by 2.4% during the fourth quarter. Pure Financial Advisors LLC now owns 127 shares of the company's stock worth $430,000 after buying an additional 3 shares in the last quarter. IVC Wealth Advisors LLC raised its holdings in shares of AutoZone by 2.9% in the first quarter. IVC Wealth Advisors LLC now owns 107 shares of the company's stock valued at $361,000 after purchasing an additional 3 shares during the last quarter. Finally, Petredis Investment Advisors LLC increased its stake in AutoZone by 0.4% in the 1st quarter. Petredis Investment Advisors LLC now owns 762 shares of the company's stock valued at $2,574,000 after buying an additional 3 shares during the last quarter. Hedge funds and other institutional investors own 92.74% of the company's stock.

AutoZone Company Profile

AutoZone, Inc is a retailer and distributor of automotive replacement parts, accessories, and maintenance products. The company serves do-it-yourself customers, professional service technicians, and commercial repair businesses through its stores, distribution network, and online platform.

Its product offerings include replacement parts such as batteries, brakes, engine components, and ignition products, along with tools, fluids, filters, and other automotive accessories. AutoZone also provides services such as parts lookup, diagnostic assistance, battery testing and charging, and loaner tools for eligible repairs.

Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates primarily in the United States, with additional locations in Mexico and Brazil.

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