AutoZone (NYSE:AZO – Free Report) had its price target reduced by Mizuho from $3,200.00 to $3,000.00 in a report published on Wednesday, MarketBeat.com reports. They currently have a neutral rating on the stock.
Other equities research analysts have also recently issued reports about the stock. Wells Fargo & Company reduced their target price on shares of AutoZone from $4,150.00 to $3,500.00 and set an “overweight” rating for the company in a report on Thursday, September 10th. Piper Sandler set a $3,500.00 price objective on AutoZone in a research note on Monday, August 31st. Truist Financial set a $3,700.00 price objective on AutoZone in a research report on Wednesday, May 27th. Barclays decreased their price target on AutoZone from $3,637.00 to $3,400.00 and set an “overweight” rating for the company in a report on Wednesday. Finally, Raymond James Financial dropped their price objective on shares of AutoZone from $4,000.00 to $3,700.00 and set a “strong-buy” rating on the stock in a research note on Wednesday. One equities 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 stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $3,717.12.
AutoZone Trading Up 0.3%
AutoZone (NYSE:AZO – Get Free Report) last released its quarterly earnings results on Tuesday, September 22nd. The company reported $56.05 EPS for the quarter, beating the consensus estimate of $0.54 by $55.51. The firm had revenue of $6.59 billion during the quarter, compared to the consensus estimate of $6.70 billion. AutoZone had a net margin of 12.65% and a negative return on equity of 90.08%. AutoZone’s revenue for the quarter was up 5.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $48.71 EPS. Research analysts predict that AutoZone will post 172.97 EPS for the current fiscal year.
AutoZone announced that its Board of Directors has approved a stock repurchase plan on Tuesday, June 16th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 3% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.
Insider Activity at AutoZone
In related news, VP Dennis LeRiche sold 1,455 shares of the company’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $3,100.00, for a total transaction of $4,510,500.00. Following the sale, the vice president directly owned 441 shares of the company’s stock, valued at approximately $1,367,100. This represents a 76.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 2.60% of the company’s stock.
Institutional Inflows and Outflows
Institutional investors have recently added to or reduced their stakes in the business. Benchmark Investment Advisors LLC acquired a new position in shares of AutoZone in the 2nd quarter worth approximately $713,000. CYBER HORNET ETFs LLC grew its holdings in shares of AutoZone by 33,193.5% in the 2nd quarter. CYBER HORNET ETFs LLC now owns 15,315 shares of the company’s stock worth $48,946,000 after acquiring an additional 15,269 shares during the last quarter. Jupiter Asset Management Ltd. acquired a new stake in shares of AutoZone during the fourth quarter worth $1,808,000. Nykredit A S purchased a new stake in shares of AutoZone during the second quarter valued at $27,287,000. Finally, Bank of America Corp DE acquired a new position in shares of AutoZone in the 2nd quarter valued at $233,576,000. Institutional investors and hedge funds own 92.74% of the company’s stock.
Key AutoZone News
Here are the key news stories impacting AutoZone this week:
- Positive Sentiment: Strong earnings and free cash flow: AutoZone reported fiscal Q4 revenue of approximately $6.59 billion, up 5.6% year over year, while earnings exceeded expectations. Strong free-cash-flow margins and the company’s cash-generation profile are fueling the view that AZO shares may be undervalued. One analysis estimates roughly 28% upside based on forecasts, valuation multiples and analyst price targets. AutoZone Generates Strong Q4 Free Cash Flow – Is AZO Stock Too Cheap?
- Positive Sentiment: Jefferies maintains a Buy rating: The continued bullish stance reinforces investor confidence in AutoZone’s earnings resilience and long-term growth prospects. Jefferies Remains a Buy on AutoZone
- Positive Sentiment: Store expansion supports the investment narrative: Record fourth-quarter results alongside continued store growth suggest management is expanding AutoZone’s earnings base and may improve its longer-term growth outlook. Did Record Q4 Results and Store Expansion Just Shift AutoZone’s Investment Narrative?
- Neutral Sentiment: Mixed analyst actions: Goldman Sachs still rates AZO Buy and sees substantial potential upside, but reduced its target to $3,917 from $4,096. DA Davidson and Raymond James also cut their targets, while Roth Capital issued a more pessimistic forecast. These revisions temper the bullish reaction without changing the broader debate over valuation.
- Negative Sentiment: Revenue missed expectations: Although sales increased year over year, quarterly revenue came in below the roughly $6.70 billion consensus estimate. The shortfall and cautious target revisions could limit upside if investors begin to question the pace of growth.
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.
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