Vanguard Group Inc. has increased its ownership of AutoZone, Inc. (NYSE: AZO) to a substantial $6.57 billion, reflecting a 0.6% rise in holdings during the second quarter of 2023. According to its recent Form 13F filing with the Securities and Exchange Commission, Vanguard now owns 1,771,004 shares of AutoZone after purchasing an additional 11,142 shares in that period. This investment represents approximately 10.55% of the company’s total stock.
Other institutional investors have also made notable changes to their positions in AutoZone. For instance, AlphaCore Capital LLC acquired a new stake valued at approximately $27,000 during the first quarter, while the Saudi Central Bank matched that investment with a similar purchase. Aspect Partners LLC significantly boosted its stake by 700%, now holding 8 shares valued at $30,000 following an additional buy. Meanwhile, Bank of Jackson Hole Trust and NewSquare Capital LLC have also increased their investments, contributing to a total institutional ownership of 92.74% in the company.
Analysts Upgrade AutoZone’s Stock Ratings
AutoZone has attracted attention from several analysts, leading to multiple upgrades in stock ratings. Jefferies Financial Group raised its target price from $4,255 to $4,750, maintaining a “buy” rating in a research note on September 24. Similarly, TD Cowen increased its target from $4,300 to $4,900, also assigning a “buy” rating. Other firms, including Gabelli and JPMorgan Chase & Co., have echoed these sentiments with their own upgrades.
Currently, one research analyst rates AutoZone with a “Strong Buy,” while 26 others have issued “Buy” ratings. Two analysts have rated it as a “Hold,” and one has assigned a “Sell” rating. As a result, the stock has a consensus rating of “Moderate Buy” and an average target price of $4,551.56, according to MarketBeat.
Insider Activity and Recent Performance
Recent insider trading activity has raised eyebrows, particularly concerning Senior Vice President K. Michelle Borninkhof, who sold 300 shares on October 27 at an average price of $3,775, totaling $1,132,500. Following this transaction, Borninkhof retained just 416 shares, a decrease of nearly 42% in her position. Similarly, CEO Philip B. Daniele sold 2,533 shares on October 17 at an average price of $4,020.88, amounting to approximately $10.18 million. Following the sale, Daniele holds only 55 shares, reflecting a dramatic reduction of nearly 98%.
In the last quarter, insiders sold a total of 5,693 shares worth $23,259,891. Despite these transactions, insiders maintain a 2.60% stake in AutoZone.
As of Wednesday, AutoZone’s stock traded down by 0.8%, opening at $3,823.08. The company boasts a market capitalization of $63.59 billion, a price-to-earnings ratio of 26.39, and a beta of 0.37. Over the past year, the stock has fluctuated between a low of $3,036.40 and a high of $4,388.11.
In its latest earnings report on September 23, AutoZone announced earnings per share (EPS) of $48.71, which fell short of analysts’ expectations of $50.52. The company reported revenues of $6.24 billion for the quarter, slightly below the anticipated $6.26 billion, but still demonstrating a year-over-year increase of 0.6%. Analysts predict that AutoZone will achieve an EPS of 152.94 for the current fiscal year.
In a significant move, AutoZone’s Board of Directors approved a share buyback program on October 8, allowing the company to repurchase shares through open market purchases. Such programs typically indicate that company leadership believes the stock is undervalued, reflecting a commitment to enhancing shareholder value.
AutoZone, Inc. is a leading retailer and distributor of automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company offers a wide range of products for various vehicle types, including cars, SUVs, vans, and light trucks, emphasizing both new and remanufactured parts.
As the company navigates through market fluctuations and insider trading activities, AutoZone continues to attract significant interest from both institutional investors and analysts, positioning itself strongly within the automotive retail sector.
