Erste Group Bank Downgrades AutoZone (NYSE:AZO) to Hold

AutoZone (NYSE:AZO) was downgraded by research analysts at Erste Group Bank from a “buy” rating to a “hold” rating in a research note issued to investors on Friday, MarketBeat Ratings reports.

Several other brokerages also recently weighed in on AZO. Weiss Ratings reissued a “buy (b-)” rating on shares of AutoZone in a report on Wednesday, October 8th. Raymond James Financial lowered their price target on AutoZone from $4,900.00 to $4,800.00 and set a “strong-buy” rating for the company in a report on Wednesday, September 24th. Wells Fargo & Company reduced their price objective on AutoZone from $4,800.00 to $4,700.00 and set an “overweight” rating for the company in a research note on Wednesday, September 24th. UBS Group reduced their price objective on AutoZone from $4,925.00 to $4,800.00 and set a “buy” rating for the company in a research note on Wednesday, September 24th. Finally, Morgan Stanley raised their price objective on AutoZone from $4,000.00 to $4,700.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $4,544.68.

AutoZone Stock Performance

Shares of NYSE AZO opened at $3,674.69 on Friday. The company has a market cap of $61.12 billion, a PE ratio of 25.36, a P/E/G ratio of 1.75 and a beta of 0.40. The business has a 50-day simple moving average of $4,104.75 and a two-hundred day simple moving average of $3,883.12. AutoZone has a fifty-two week low of $2,980.10 and a fifty-two week high of $4,388.11.

AutoZone (NYSE:AZO) last issued its quarterly earnings results on Tuesday, September 23rd. The company reported $48.71 earnings per share for the quarter, missing the consensus estimate of $50.52 by ($1.81). The business had revenue of $6.24 billion during the quarter, compared to analyst estimates of $6.26 billion. AutoZone had a negative return on equity of 60.49% and a net margin of 13.19%.AutoZone’s revenue was up .6% compared to the same quarter last year. During the same period in the prior year, the business posted $51.58 EPS. On average, sell-side analysts predict that AutoZone will post 152.94 earnings per share for the current fiscal year.

AutoZone declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, October 8th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to purchase shares 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 at AutoZone

In related news, CEO Philip B. Daniele sold 2,533 shares of AutoZone stock in a transaction that occurred on Friday, October 17th. The stock was sold at an average price of $4,020.88, for a total transaction of $10,184,889.04. Following the completion of the transaction, the chief executive officer directly owned 55 shares in the company, valued at approximately $221,148.40. This trade represents a 97.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP K. Michelle Borninkhof sold 300 shares of AutoZone stock in a transaction that occurred on Monday, October 27th. The shares were sold at an average price of $3,775.00, for a total value of $1,132,500.00. Following the transaction, the senior vice president owned 416 shares of the company’s stock, valued at approximately $1,570,400. This represents a 41.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 5,693 shares of company stock worth $23,259,891. 2.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of AZO. Brighton Jones LLC raised its position in AutoZone by 14.4% during the fourth quarter. Brighton Jones LLC now owns 111 shares of the company’s stock valued at $356,000 after acquiring an additional 14 shares in the last quarter. Golden State Wealth Management LLC grew its holdings in AutoZone by 100.0% in the first quarter. Golden State Wealth Management LLC now owns 14 shares of the company’s stock valued at $53,000 after purchasing an additional 7 shares during the period. Vontobel Holding Ltd. grew its holdings in AutoZone by 13.6% in the first quarter. Vontobel Holding Ltd. now owns 593 shares of the company’s stock valued at $2,261,000 after purchasing an additional 71 shares during the period. Keybank National Association OH grew its holdings in AutoZone by 1.5% in the first quarter. Keybank National Association OH now owns 414 shares of the company’s stock valued at $1,578,000 after purchasing an additional 6 shares during the period. Finally, First Horizon Advisors Inc. grew its holdings in AutoZone by 1.9% in the first quarter. First Horizon Advisors Inc. now owns 320 shares of the company’s stock valued at $1,220,000 after purchasing an additional 6 shares during the period. 92.74% of the stock is currently owned by hedge funds and other institutional investors.

AutoZone Company Profile

AutoZone, Inc retails and distributes automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.