AutoZone (NYSE:AZO) Reaches New 1-Year Low – What’s Next?

Shares of AutoZone, Inc. (NYSE:AZO) reached a new 52-week low on Tuesday . The stock traded as low as $3,071.71 and last traded at $3,112.00, with a volume of 62469 shares traded. The stock had previously closed at $3,406.50.

AutoZone News Summary

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone delivered a solid earnings beat, reporting $38.07 per share versus consensus around $36.22, and same-store sales rose 3.9% companywide and 4.1% domestically.
• Positive Sentiment: Domestic growth remains a key strength, with the company saying its repair business is still “pretty inelastic,” suggesting demand is holding up even as consumers cut back in other areas. Article Title
• Neutral Sentiment: Management is continuing aggressive expansion and capital returns, including significant share repurchases, which supports the long-term investment case but may be offset near term by execution costs and margin pressure. Article Title
• Negative Sentiment: Investors were disappointed that revenue missed forecasts and gross margin fell, leading to a sharp selloff despite the EPS beat.
• Negative Sentiment: International results were described as challenged, and the stock has fallen further as traders react to profitability concerns and a softer outlook for non-U.S. operations.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the company. BMO Capital Markets lowered their target price on AutoZone from $4,400.00 to $4,300.00 and set an “outperform” rating on the stock in a research note on Wednesday, March 4th. Morgan Stanley raised their price objective on shares of AutoZone from $4,000.00 to $4,020.00 and gave the stock an “overweight” rating in a report on Wednesday, March 4th. Mizuho boosted their target price on shares of AutoZone from $3,550.00 to $3,600.00 and gave the company a “neutral” rating in a research note on Thursday, March 5th. UBS Group set a $4,800.00 target price on shares of AutoZone in a research report on Tuesday, March 3rd. Finally, Citigroup raised their price target on shares of AutoZone from $4,200.00 to $4,300.00 and gave the stock a “buy” rating in a research note on Wednesday, March 4th. One 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. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $4,290.91.

AutoZone Trading Down 9.6%

The firm has a fifty day moving average of $3,457.35 and a two-hundred day moving average of $3,583.61. The company has a market cap of $50.74 billion, a PE ratio of 21.57, a price-to-earnings-growth ratio of 1.74 and a beta of 0.43.

AutoZone (NYSE:AZO) last released 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 business had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.86 billion. AutoZone had a net margin of 12.47% and a negative return on equity of 72.31%. The company’s revenue was up 8.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $35.36 earnings per share. Sell-side analysts expect that AutoZone, Inc. will post 149.16 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Earl G. Graves, Jr. sold 50 shares of the firm’s 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 value of $173,936.00. Following the completion of the transaction, the director directly owned 4,837 shares of the company’s stock, valued at approximately $16,826,568.64. This trade represents a 1.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On AutoZone

A number of large investors have recently made changes to their positions in AZO. Turning Point Benefit Group Inc. purchased a new stake in AutoZone during the 3rd quarter worth about $25,000. Raleigh Capital Management Inc. purchased a new position in AutoZone during the 3rd quarter valued at about $26,000. Torren Management LLC bought a new stake in shares of AutoZone during the fourth quarter valued at about $27,000. Transamerica Financial Advisors LLC lifted its holdings in shares of AutoZone by 100.0% in the fourth quarter. Transamerica Financial Advisors LLC now owns 8 shares of the company’s stock worth $28,000 after buying an additional 4 shares in the last quarter. Finally, MCF Advisors LLC boosted its position in shares of AutoZone by 50.0% in the fourth quarter. MCF Advisors LLC now owns 9 shares of the company’s stock valued at $31,000 after acquiring an additional 3 shares during the period. 92.74% of the stock is owned by institutional investors.

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.