The Goldman Sachs Group Has Lowered Expectations for AutoZone (NYSE:AZO) Stock Price

Key Points

• Goldman Sachs cut its price target on AutoZone from $4,345 to $4,096, but kept a buy rating and still sees about 34% upside from the prior close.
• AutoZone shares fell 1.5% on the day to $3,053.75, leaving the stock near its 52-week low and well below its moving averages.
• The company recently beat earnings expectations with Q3 EPS of $38.07, while revenue rose 8.4% year over year to $4.84 billion, though it slightly missed revenue estimates.

AutoZone (NYSE:AZO - Get Free Report) had its target price decreased by equities research analysts at The Goldman Sachs Group from $4,345.00 to $4,096.00 in a report released on Wednesday,MarketScreener reports. The firm presently has a "buy" rating on the stock. The Goldman Sachs Group's price objective points to a potential upside of 34.13% from the company's previous close.

Several other equities research analysts have also recently weighed in on AZO. Morgan Stanley increased their price objective on shares of AutoZone from $4,000.00 to $4,020.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 4th. TD Cowen lowered their price objective on AutoZone from $4,250.00 to $3,700.00 and set a "buy" rating for the company in a research note on Wednesday. JPMorgan Chase & Co. decreased their price target on AutoZone from $4,300.00 to $3,850.00 and set an "overweight" rating for the company in a research report on Wednesday. UBS Group set a $4,800.00 price target on shares of AutoZone in a research note on Tuesday, March 3rd. Finally, Robert W. Baird reduced their price objective on shares of AutoZone from $3,900.00 to $3,600.00 and set a "neutral" rating on the stock in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $4,099.83.

AutoZone Trading Down 1.5%

NYSE AZO traded down $46.36 during trading on Wednesday, hitting $3,053.75. 20,426 shares of the company's stock were exchanged, compared to its average volume of 191,540. The company has a market cap 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 fifty-two week low of $3,001.00 and a fifty-two week high of $4,388.11. The stock's 50 day moving average price is $3,448.20 and its two-hundred day moving average price is $3,579.65.

AutoZone (NYSE:AZO - Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $38.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $36.22 by $1.85. AutoZone had a net margin of 12.47% and a negative return on equity of 72.31%. The company 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 earned $35.36 earnings per share. The company's revenue for the quarter was up 8.4% compared to the same quarter last year. Analysts forecast that AutoZone will post 149.16 earnings per share for the current fiscal year.

Insider Transactions at AutoZone

In other AutoZone news, Director Earl G. Graves, Jr. sold 50 shares of the stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $3,478.72, for a total transaction of $173,936.00. Following the transaction, the director directly owned 4,837 shares in the company, valued at $16,826,568.64. This represents a 1.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AutoZone

Hedge funds have recently made changes to their positions in the stock. SYM FINANCIAL Corp boosted its position in shares of AutoZone by 3.6% in the 3rd quarter. SYM FINANCIAL Corp now owns 86 shares of the company's stock worth $369,000 after purchasing an additional 3 shares in the last quarter. Camden National Bank grew its stake in AutoZone by 3.6% during the 3rd quarter. Camden National Bank now owns 86 shares of the company's stock valued at $369,000 after purchasing an additional 3 shares during the last quarter. Crestwood Advisors Group LLC increased its holdings in shares of AutoZone by 1.7% in the third quarter. Crestwood Advisors Group LLC now owns 184 shares of the company's stock valued at $791,000 after purchasing an additional 3 shares during the period. Assetmark Inc. raised its stake in shares of AutoZone by 1.4% in the third quarter. Assetmark Inc. now owns 212 shares of the company's stock worth $908,000 after purchasing an additional 3 shares during the last quarter. Finally, Bridgewater Advisors Inc. boosted its position in AutoZone by 1.3% in the third quarter. Bridgewater Advisors Inc. now owns 229 shares of the company's stock valued at $982,000 after buying an additional 3 shares during the last quarter. 92.74% of the stock is currently owned by hedge funds and other institutional investors.

Key AutoZone News

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

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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