AutoZone (NYSE:AZO) Trading Down 5.5% – Should You Sell?

Shares of AutoZone, Inc. (NYSE:AZO) traded down 5.5% on Monday . The stock traded as low as $2,990.00 and last traded at $2,984.2470. Approximately 35,265 shares were traded during trading, a decline of 86% from the average daily volume of 259,915 shares. The stock had previously closed at $3,159.28.

Analyst Ratings Changes

Several equities research analysts have commented on the company. Citigroup cut their target price on AutoZone from $4,300.00 to $3,700.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. BNP Paribas Exane decreased their price target on shares of AutoZone from $4,478.00 to $3,979.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Evercore reiterated an “outperform” rating on shares of AutoZone in a report on Tuesday, May 26th. TD Cowen reissued a “buy” rating and issued a $3,700.00 price objective on shares of AutoZone in a research report on Thursday, June 4th. Finally, JPMorgan Chase & Co. reduced their target price on shares of AutoZone from $4,300.00 to $3,850.00 and set an “overweight” rating for the company in a 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 given a Hold rating to the company. Based on data from MarketBeat.com, AutoZone has an average rating of “Moderate Buy” and an average price target of $4,040.87.

AutoZone Trading Down 5.8%

The firm has a market capitalization of $48.60 billion, a price-to-earnings ratio of 20.45, a P/E/G ratio of 1.60 and a beta of 0.33. The company’s 50 day moving average is $3,248.95 and its 200-day moving average is $3,444.13.

AutoZone (NYSE:AZO) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $38.07 earnings per share for the quarter, topping analysts’ consensus estimates of $36.22 by $1.85. The firm had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.86 billion. AutoZone had a negative return on equity of 80.35% and a net margin of 12.40%.The business’s revenue was up 8.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $35.36 earnings per share. Research analysts expect that AutoZone, Inc. will post 150.51 EPS for the current year.

AutoZone declared that its Board of Directors has approved a stock buyback program on Tuesday, June 16th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the company to repurchase up to 3% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Earl G. Graves, Jr. sold 50 shares of the business’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 transaction of $173,936.00. Following the transaction, the director directly owned 4,837 shares of the company’s stock, valued at approximately $16,826,568.64. The trade was a 1.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Brian Hannasch purchased 165 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The stock was acquired at an average price of $2,987.00 per share, for a total transaction of $492,855.00. Following the purchase, the director owned 1,219 shares in the company, valued at $3,641,153. This trade represents a 15.65% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 2.60% of the stock is currently owned by insiders.

Institutional Trading of AutoZone

A number of hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new position in AutoZone in the 4th quarter valued at about $939,205,000. Morgan Stanley lifted its position in AutoZone by 17.8% during the fourth quarter. Morgan Stanley now owns 492,794 shares of the company’s stock worth $1,671,323,000 after acquiring an additional 74,555 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in AutoZone by 387.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 77,792 shares of the company’s stock worth $263,832,000 after acquiring an additional 61,821 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings 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 acquiring an additional 50,071 shares during the period. Finally, AQR Capital Management LLC boosted its holdings 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 acquiring an additional 45,212 shares during the period. Institutional investors and hedge funds own 92.74% 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.