AutoZone (NYSE:AZO) Price Target Lowered to $3,500.00 at BMO Capital Markets

AutoZone (NYSE:AZO) had its price target cut by analysts at BMO Capital Markets from $4,000.00 to $3,500.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage presently has an “outperform” rating on the stock. BMO Capital Markets’ target price would indicate a potential upside of 21.07% from the stock’s current price.

Several other analysts have also commented on AZO. Weiss Ratings lowered shares of AutoZone from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, July 23rd. Morgan Stanley dropped their target price on AutoZone from $4,020.00 to $3,605.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 27th. Piper Sandler set a $3,500.00 target price on AutoZone in a research report on Monday, August 31st. Roth Capital reduced their target price on AutoZone from $4,526.00 to $4,023.00 and set a “buy” rating on the stock in a research report on Wednesday, May 27th. Finally, UBS Group reiterated a “buy” rating on shares of AutoZone in a research note on Tuesday, September 15th. 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’s stock. According to data from MarketBeat, AutoZone presently has a consensus rating of “Moderate Buy” and a consensus price target of $3,788.12.

AutoZone Stock Performance

AutoZone stock opened at $2,891.00 on Wednesday. The company has a 50 day moving average price of $2,986.72 and a 200-day moving average price of $3,205.00. AutoZone has a fifty-two week low of $2,796.85 and a fifty-two week high of $4,332.68. The company has a market capitalization of $47.21 billion, a PE ratio of 19.88, a P/E/G ratio of 1.41 and a beta of 0.34.

AutoZone (NYSE:AZO) last released its quarterly earnings data on Tuesday, September 22nd. The company reported $56.05 earnings per share for the quarter, beating the consensus estimate of $0.54 by $55.51. AutoZone had a negative return on equity of 80.35% and a net margin of 12.40%.The firm had revenue of $6.59 billion during the quarter, compared to the consensus estimate of $6.70 billion. During the same period in the previous year, the company posted $48.71 earnings per share. The firm’s quarterly revenue was up 5.6% on a year-over-year basis. On average, analysts forecast that AutoZone will post 150.61 earnings per share for the current year.

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

Insider Activity

In other AutoZone news, VP Dennis LeRiche sold 1,455 shares of the company’s stock in a transaction dated 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 completion of the transaction, the vice president owned 441 shares in the company, valued at approximately $1,367,100. This represents a 76.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 2.60% of the stock is currently owned by corporate insiders.

Institutional Trading of AutoZone

Institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in AutoZone in the 2nd quarter worth about $3,938,566,000. Norges Bank acquired a new position in shares of AutoZone during the fourth quarter valued at approximately $939,205,000. First Manhattan CO. LLC. raised its holdings in shares of AutoZone by 2.7% during the fourth quarter. First Manhattan CO. LLC. now owns 261,314 shares of the company’s stock valued at $886,246,000 after acquiring an additional 6,765 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of AutoZone in the second quarter valued at approximately $572,885,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of AutoZone by 11,577.6% in 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 acquiring an additional 139,858 shares during the last quarter. Institutional investors and hedge funds own 92.74% of the company’s stock.

AutoZone News Roundup

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: Profit significantly exceeded expectations: AutoZone reported fiscal fourth-quarter diluted EPS of $56.05, up from $48.71 a year earlier and above analyst estimates of roughly $54.50. Net income rose to $931.6 million, while operating profit increased 10.1% to approximately $1.3 billion. AutoZone fourth-quarter results
• Positive Sentiment: Expansion and market-share gains support the outlook: Quarterly sales increased 5.6% to $6.59 billion, AutoZone opened 175 stores, and management said it is well positioned for fiscal 2027 sales growth. International same-store sales were particularly strong, and analysts highlighted the company’s expanding global store network as a source of future growth. Why AutoZone stock rallied
• Positive Sentiment: Margin gains and capital returns helped investor sentiment: Gross margin improved to 53.3%, aided by tariff refunds and a favorable LIFO comparison. AutoZone also repurchased about $697.5 million of stock during the quarter, supporting per-share earnings.
• Neutral Sentiment: Revenue and comparable-store growth were mixed: Quarterly revenue fell short of forecasts, while domestic same-store sales rose only 1.6% on a constant-currency basis. The earnings beat therefore depended partly on margin benefits that may not recur.
• Negative Sentiment: Analyst downgrade remains an overhang: AutoZone reached a new 12-month low following an analyst downgrade before the earnings-driven rebound, reflecting concerns about slowing comparable sales and the sustainability of recent earnings growth. AutoZone reaches new 12-month low

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.