Vanguard Group Inc. has expanded its investment in AutoZone, Inc. (NYSE: AZO) by 0.6% during the second quarter of 2023. According to its latest Form 13F filing with the Securities and Exchange Commission, Vanguard now holds 1,771,004 shares of AutoZone, valued at approximately $6.57 billion. This increase was facilitated by the acquisition of an additional 11,142 shares during the quarter.
The firm’s stake in AutoZone represents 10.55% of the company’s total shares. Other institutional investors have also made adjustments to their positions in AutoZone. For instance, AlphaCore Capital LLC acquired a new stake in the first quarter valued at about $27,000, while Saudi Central Bank similarly entered a new position worth $27,000. Aspect Partners LLC notably increased its stake by an impressive 700% in the second quarter, now owning a total of 8 shares valued at $30,000.
Among other changes, Bank of Jackson Hole Trust purchased a new stake worth $33,000, and NewSquare Capital LLC enhanced its position by 50%, now holding 9 shares valued at $33,000. In total, institutional investors and hedge funds own 92.74% of AutoZone’s stock.
Analysts Upgrade AutoZone Ratings
Recently, several analysts have positively revised their outlook for AutoZone. Jefferies Financial Group raised its target price from $4,255 to $4,750, designating the stock with a “buy” rating. TD Cowen also increased its target price from $4,300 to $4,900 while maintaining a “buy” rating. JPMorgan Chase & Co. increased their price objective from $4,200 to $4,850, giving AutoZone an “overweight” rating.
Currently, one analyst has given AutoZone a “Strong Buy” rating, while twenty-six analysts have issued a “Buy” rating. Two have rated it as “Hold,” and one has assigned a “Sell” rating. According to MarketBeat, the consensus rating for AutoZone is a “Moderate Buy,” with an average target price of $4,551.56.
Insider Transactions and Stock Performance
In recent insider trading activities, K. Michelle Borninkhof, Senior Vice President, sold 300 shares of AutoZone stock on October 27, 2023, at an average price of $3,775, totaling $1,132,500. Following this transaction, she directly owns 416 shares, valued at approximately $1,570,400. This sale reflects a 41.90% decrease in her holdings.
Additionally, CEO Philip B. Daniele sold 2,533 shares on October 17, 2023, at an average price of $4,020.88, amounting to $10,184,889.04. Post-transaction, Daniele holds just 55 shares of the company, valued at around $221,148.40, marking a significant 97.87% reduction in his position. In total, insiders sold 5,693 shares worth $23,259,891 during the last quarter, with insiders now owning 2.60% of the company’s stock.
As of Wednesday, AutoZone shares opened at $3,823.08, reflecting a 0.8% decrease. The company has a market capitalization of $63.59 billion, a PE ratio of 26.39, and a PEG ratio of 1.75. Over the past year, the stock has fluctuated between a low of $3,036.40 and a high of $4,388.11. The company’s 50-day moving average price stands at $3,993.94, while the two-hundred day moving average price is $3,892.71.
AutoZone last reported its earnings on September 23, 2023, revealing earnings per share of $48.71, which fell short of analysts’ expectations of $50.52. While revenue for the quarter reached $6.24 billion, it slightly missed the projected $6.26 billion. Compared to the same quarter last year, revenue increased by 0.6%.
Looking ahead, analysts anticipate that AutoZone will achieve an earnings per share of 152.94 for the current year. Notably, on October 8, 2023, AutoZone’s Board of Directors approved a share buyback program, signaling confidence in the company’s valuation.
