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

AutoZone, Inc. (NYSE:AZO)’s share price traded down 5.5% during mid-day trading on Monday . The stock traded as low as $2,990.00 and last traded at $2,984.2470. Approximately 35,265 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 259,915 shares. The stock had previously closed at $3,159.28.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the stock. Mizuho dropped their target price on shares of AutoZone from $3,600.00 to $3,200.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 27th. Guggenheim decreased their price target on shares of AutoZone from $4,400.00 to $4,000.00 and set a “buy” rating on the stock in a research report on Wednesday, May 27th. The Goldman Sachs Group dropped their price objective on shares of AutoZone from $4,345.00 to $4,096.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. Truist Financial set a $3,700.00 price objective on shares of AutoZone in a research report on Wednesday, May 27th. Finally, Jefferies Financial Group reduced their target price on shares of AutoZone from $4,400.00 to $4,000.00 and set a “buy” rating for the company in a research note on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $4,040.87.

AutoZone Trading Down 5.8%

The company has a market capitalization of $48.60 billion, a P/E ratio of 20.45, a PEG ratio of 1.60 and a beta of 0.33. The business has a 50 day moving average price of $3,248.95 and a 200 day moving average price of $3,444.13.

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

AutoZone announced that its board has approved a share buyback plan 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 stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In other AutoZone news, Director Earl G. Graves, Jr. sold 50 shares of AutoZone stock in a transaction dated 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 in the company, valued at approximately $16,826,568.64. The trade was a 1.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Brian Hannasch purchased 165 shares of the stock in a transaction on Friday, May 29th. The stock was acquired at an average price of $2,987.00 per share, with a total value of $492,855.00. Following the completion of the acquisition, 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 ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 2.60% of the company’s stock.

Institutional Trading of AutoZone

Several hedge funds have recently bought and sold shares of AZO. Turning Point Benefit Group Inc. bought a new stake in shares of AutoZone during the third quarter worth $25,000. Torren Management LLC bought a new stake in AutoZone in the 4th quarter valued at $27,000. Transamerica Financial Advisors LLC lifted its position in AutoZone by 100.0% in the 4th quarter. Transamerica Financial Advisors LLC now owns 8 shares of the company’s stock valued at $28,000 after acquiring an additional 4 shares in the last quarter. MCF Advisors LLC boosted its stake in AutoZone by 50.0% in the 4th quarter. MCF Advisors LLC now owns 9 shares of the company’s stock worth $31,000 after purchasing an additional 3 shares during the period. Finally, Bard Associates Inc. acquired a new position in AutoZone in the 4th quarter worth $31,000. 92.74% of the stock is currently owned by institutional investors and hedge funds.

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.