DA Davidson Cuts AutoZone (NYSE:AZO) Price Target to $3,500.00

AutoZone (NYSE:AZO) had its price objective cut by DA Davidson from $3,750.00 to $3,500.00 in a report published on Wednesday morning,Benzinga reports. They currently have a buy rating on the stock.

Other research analysts also recently issued reports about the company. Evercore reiterated an “outperform” rating on shares of AutoZone in a report on Wednesday. Robert W. Baird decreased their price objective on AutoZone from $3,600.00 to $3,400.00 and set a “neutral” rating for the company in a research note on Wednesday. Citigroup dropped their price objective on AutoZone from $3,700.00 to $3,450.00 and set a “buy” rating on the stock in a research report on Monday, September 14th. Raymond James Financial cut their target price on AutoZone from $4,000.00 to $3,700.00 and set a “strong-buy” rating on the stock in a research note on Wednesday. Finally, Piper Sandler set a $3,500.00 target price on shares of AutoZone in a report on Monday, August 31st. One 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.com, the stock has an average rating of “Moderate Buy” and an average price target of $3,717.12.

AutoZone Stock Performance

Shares of AZO opened at $2,870.31 on Wednesday. The company has a 50 day moving average price of $2,976.93 and a 200-day moving average price of $3,190.97. AutoZone has a fifty-two week low of $2,764.88 and a fifty-two week high of $4,332.68. The stock has a market capitalization of $46.87 billion, a PE ratio of 18.79, a PEG ratio of 1.32 and a beta of 0.34.

AutoZone (NYSE:AZO) last issued its quarterly earnings data on Tuesday, September 22nd. The company reported $56.05 EPS for the quarter, topping analysts’ consensus estimates of $0.54 by $55.51. The company 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% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $48.71 earnings per share. Equities research analysts forecast that AutoZone will post 172.97 EPS for the current year.

AutoZone announced that its Board of Directors has approved a stock repurchase plan on Tuesday, June 16th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the company to buy up to 3% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling at AutoZone

In related news, VP Dennis LeRiche sold 1,455 shares of the business’s stock in a transaction 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 transaction, the vice president directly owned 441 shares in the company, valued at $1,367,100. The trade was a 76.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 2.60% of the stock is owned by insiders.

Institutional Investors Weigh In On AutoZone

Institutional investors have recently added to or reduced their stakes in the business. Benchmark Investment Advisors LLC acquired a new stake in AutoZone in the 2nd quarter worth approximately $713,000. CYBER HORNET ETFs LLC increased its stake in AutoZone by 33,193.5% during the 2nd quarter. CYBER HORNET ETFs LLC now owns 15,315 shares of the company’s stock valued at $48,946,000 after purchasing an additional 15,269 shares in the last quarter. Jupiter Asset Management Ltd. acquired a new position in AutoZone during the 4th quarter valued at approximately $1,808,000. Nykredit A S purchased a new position in shares of AutoZone in the second quarter worth $27,287,000. Finally, Bank of America Corp DE purchased a new position in shares of AutoZone in the second quarter worth $233,576,000. Institutional investors and hedge funds own 92.74% of the company’s stock.

Key Headlines Impacting AutoZone

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.

About AutoZone

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.