AutoZone (NYSE:AZO) Sees Strong Trading Volume – Still a Buy?

AutoZone, Inc. (NYSE:AZO) saw strong trading volume on Thursday . 768,865 shares traded hands during 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.

Analysts Set New Price Targets

Several research firms have weighed in on AZO. Morgan Stanley lowered 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. Citigroup cut their price objective on AutoZone from $4,300.00 to $3,700.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. UBS Group set a $4,800.00 price objective on shares of AutoZone in a research report on Tuesday, March 3rd. Raymond James Financial reaffirmed a “strong-buy” rating on shares of AutoZone in a research note on Wednesday, May 27th. Finally, TD Cowen reiterated a “buy” rating and set a $3,700.00 target price on shares of AutoZone in a research report on Thursday, June 4th. One research 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, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $4,040.87.

AutoZone Price Performance

The company has a 50 day simple moving average of $3,348.30 and a 200-day simple moving average of $3,493.73. The stock 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 announced its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, beating the consensus estimate of $36.22 by $1.85. The firm had revenue of $4.84 billion for the quarter, compared to analyst estimates of $4.86 billion. AutoZone had a negative return on equity of 80.35% and a net margin of 12.40%.The company’s revenue was up 8.4% on a year-over-year basis. During the same period in the prior year, the company earned $35.36 EPS. As a group, research analysts expect that AutoZone, Inc. will post 150.45 earnings per share for the current year.

AutoZone announced that its Board of Directors has initiated a stock buyback program on Tuesday, June 16th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the company to buy up to 3% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity at AutoZone

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

Hedge Funds Weigh In On AutoZone

Institutional investors and hedge funds have recently made changes to their positions in the business. Crestwood Advisors Group LLC boosted its position in 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. lifted its stake in shares of AutoZone by 1.4% in the 3rd quarter. Assetmark Inc. now owns 212 shares of the company’s stock valued at $908,000 after acquiring an additional 3 shares during the last quarter. Bridgewater Advisors Inc. lifted its stake in shares of AutoZone by 1.3% in the 3rd quarter. Bridgewater Advisors Inc. now owns 229 shares of the company’s stock valued at $982,000 after acquiring an additional 3 shares during the last quarter. Compass Capital Corp MA ADV boosted its holdings in AutoZone by 3.7% during the 3rd quarter. Compass Capital Corp MA ADV now owns 85 shares of the company’s stock valued at $365,000 after acquiring an additional 3 shares during the period. Finally, KCM Investment Advisors LLC boosted its holdings 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 during the period. 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.