AutoZone (NYSE:AZO) Sees Unusually-High Trading Volume – Here’s Why

AutoZone, Inc. (NYSE:AZO) saw unusually-high trading volume on Thursday . 768,865 shares were traded during mid-day trading, an increase of 242% from the previous session’s volume of 224,493 shares.The stock last traded at $3,060.25 and had previously closed at $3,059.63.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. JPMorgan Chase & Co. dropped their price objective on AutoZone from $4,300.00 to $3,850.00 and set an “overweight” rating for the company in a research note on Wednesday, May 27th. Oppenheimer reaffirmed an “outperform” rating and issued a $4,300.00 target price (up from $4,150.00) on shares of AutoZone in a research note on Tuesday, March 10th. BMO Capital Markets lowered their price target on shares of AutoZone from $4,300.00 to $4,000.00 and set an “outperform” rating for the company in a report on Wednesday, May 27th. Raymond James Financial reissued a “strong-buy” rating on shares of AutoZone in a research report on Wednesday, May 27th. Finally, Roth Mkm cut their price target on shares of AutoZone from $4,526.00 to $4,023.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, AutoZone presently has a consensus rating of “Moderate Buy” and an average price target of $4,040.87.

AutoZone Stock Performance

The business has a 50-day simple moving average of $3,348.30 and a 200 day simple moving average of $3,493.73. The firm has a market cap of $50.00 billion, a P/E ratio of 21.04, a price-to-earnings-growth ratio of 1.59 and a beta of 0.35.

AutoZone (NYSE:AZO) last issued its quarterly earnings data 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. AutoZone had a negative return on equity of 80.35% and a net margin of 12.40%.The firm had revenue of $4.84 billion for the quarter, compared to analyst estimates of $4.86 billion. During the same period last year, the company earned $35.36 EPS. The business’s quarterly revenue was up 8.4% compared to the same quarter last year. On average, research analysts expect that AutoZone, Inc. will post 150.45 EPS for the current year.

AutoZone declared that its Board of Directors has approved a share repurchase plan on Tuesday, June 16th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the company to buy up to 3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, Director Brian Hannasch purchased 165 shares of the business’s stock in a transaction that occurred on Friday, May 29th. The shares were acquired at an average price of $2,987.00 per share, for a total transaction of $492,855.00. Following the completion of the acquisition, the director directly owned 1,219 shares in the company, valued at approximately $3,641,153. The trade was a 15.65% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Earl G. Graves, Jr. sold 50 shares of the business’s stock in a transaction on 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 approximately $16,826,568.64. The trade was a 1.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 2.60% of the company’s stock.

Institutional Investors Weigh In On AutoZone

Large investors have recently modified their holdings of the stock. Crestwood Advisors Group LLC increased its position in shares of AutoZone by 1.7% during the third quarter. Crestwood Advisors Group LLC now owns 184 shares of the company’s stock valued at $791,000 after buying an additional 3 shares during the period. Assetmark Inc. raised its stake in AutoZone by 1.4% in the third quarter. Assetmark Inc. now owns 212 shares of the company’s stock worth $908,000 after buying an additional 3 shares in the last quarter. Bridgewater Advisors Inc. lifted its holdings in AutoZone by 1.3% in the third quarter. Bridgewater Advisors Inc. now owns 229 shares of the company’s stock worth $982,000 after buying an additional 3 shares during the period. Compass Capital Corp MA ADV lifted its holdings in AutoZone by 3.7% in the third quarter. Compass Capital Corp MA ADV now owns 85 shares of the company’s stock worth $365,000 after buying an additional 3 shares during the period. Finally, KCM Investment Advisors LLC boosted its position in AutoZone by 0.3% during the 3rd quarter. KCM Investment Advisors LLC now owns 1,153 shares of the company’s stock valued at $4,947,000 after acquiring an additional 3 shares in the last quarter. Institutional investors own 92.74% of the company’s stock.

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.