Truist Financial Issues Pessimistic Forecast for AutoZone (NYSE:AZO) Stock Price

AutoZone (NYSE:AZO) had its target price lowered by equities research analysts at Truist Financial from $4,076.00 to $4,045.00 in a research note issued on Wednesday,MarketScreener reports. The brokerage presently has a “buy” rating on the stock. Truist Financial’s price objective would indicate a potential upside of 9.50% from the company’s previous close.

Other research analysts have also recently issued research reports about the stock. Robert W. Baird cut shares of AutoZone from an “outperform” rating to a “neutral” rating and set a $3,900.00 price objective on the stock. in a research report on Monday, February 9th. Barclays set a $3,880.00 price target on shares of AutoZone in a report on Thursday, January 8th. Jefferies Financial Group reissued a “buy” rating and issued a $4,400.00 price objective on shares of AutoZone in a research note on Wednesday, December 10th. Wolfe Research cut AutoZone from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, December 16th. Finally, Raymond James Financial decreased their price target on AutoZone from $4,800.00 to $4,600.00 and set a “strong-buy” rating for the company in a research note on Wednesday, December 10th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $4,279.00.

AutoZone Trading Up 1.6%

Shares of NYSE:AZO traded up $56.80 during trading on Wednesday, reaching $3,693.97. The company’s stock had a trading volume of 10,109 shares, compared to its average volume of 166,450. The firm’s 50 day simple moving average is $3,607.18 and its two-hundred day simple moving average is $3,825.54. AutoZone has a 12 month low of $3,210.72 and a 12 month high of $4,388.11. The stock has a market capitalization of $61.21 billion, a PE ratio of 25.76, a price-to-earnings-growth ratio of 1.85 and a beta of 0.41.

AutoZone (NYSE:AZO) last posted its quarterly earnings data on Tuesday, March 3rd. The company reported $27.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $27.59 by $0.04. The business had revenue of $4.27 billion during the quarter, compared to analyst estimates of $4.31 billion. AutoZone had a negative return on equity of 65.38% and a net margin of 12.78%.The company’s revenue for the quarter was up 8.2% on a year-over-year basis. During the same period last year, the company earned $28.29 EPS. Research analysts anticipate that AutoZone will post 152.94 EPS for the current fiscal year.

Insider Buying and Selling at AutoZone

In other news, Director George R. Mrkonic, Jr. sold 97 shares of the firm’s stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $3,341.99, for a total transaction of $324,173.03. Following the transaction, the director owned 3,564 shares in the company, valued at approximately $11,910,852.36. This trade represents a 2.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Richard Craig Smith sold 5,910 shares of the stock in a transaction dated Friday, January 23rd. The stock was sold at an average price of $3,700.00, for a total transaction of $21,867,000.00. Following the transaction, the vice president owned 2,627 shares in the company, valued at approximately $9,719,900. The trade was a 69.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have purchased 347 shares of company stock worth $1,179,256 and have sold 9,447 shares worth $34,179,923. 2.60% of the stock is owned by corporate insiders.

Institutional Trading of AutoZone

A number of hedge funds have recently bought and sold shares of AZO. Turning Point Benefit Group Inc. purchased a new stake in AutoZone during the 3rd quarter worth approximately $25,000. Raleigh Capital Management Inc. purchased a new stake in shares of AutoZone during the third quarter valued at $26,000. Torren Management LLC acquired a new position in shares of AutoZone in the 4th quarter valued at $27,000. Transamerica Financial Advisors LLC increased its position in shares of AutoZone by 100.0% in the 4th quarter. Transamerica Financial Advisors LLC now owns 8 shares of the company’s stock valued at $28,000 after acquiring an additional 4 shares during the period. Finally, Global Trust Asset Management LLC raised its stake in AutoZone by 600.0% in the 3rd quarter. Global Trust Asset Management LLC now owns 7 shares of the company’s stock worth $30,000 after acquiring an additional 6 shares during the last quarter. Hedge funds and other institutional investors own 92.74% of the company’s stock.

AutoZone News Summary

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: Small EPS beat and revenue growth: AutoZone reported EPS of $27.63, slightly above consensus, and total net sales rose ~8.1% year-over-year, showing underlying demand. MarketBeat Earnings
• Positive Sentiment: Same-store sales improvement: Total company same-store sales increased ~3.3% (domestic ~3.4%), indicating continued traffic and resiliency in core retail operations. GlobeNewswire Release
• Positive Sentiment: Analyst support remains: DA Davidson kept a Buy rating while trimming its price target (from $4,500 to $4,100), signaling some analysts view the pullback as a buying opportunity. MarketScreener
• Neutral Sentiment: Management commentary and call details: The earnings call/transcript reviewed operational drivers and margin dynamics; useful for longer?term positioning but did not materially change near-term outlook. Seeking Alpha Transcript
• Negative Sentiment: Revenue missed expectations: Net sales of ~$4.27B came in below the ~ $4.31B analyst consensus, which investors view as a key miss given AutoZone’s size and recent growth run. Yahoo Finance Sales Report
• Negative Sentiment: Margin pressure and profit decline: Company cited inflationary headwinds and margin compression; second-quarter profit fell and net margin weakened, a major driver of investor concern about near-term profitability. Reuters
• Negative Sentiment: Operational headwinds and market reaction: Winter storms were called out as a sales headwind and investors sold off sharply after the revenue miss and margin commentary (coverage notes report a ~9% intraday drop), amplifying the stock decline. WSJ

About AutoZone

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.