AutoZone (NYSE:AZO) Trading Down 4.3% After Earnings Miss

AutoZone, Inc. (NYSE:AZO)’s share price fell 4.3% on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $3,536.96 and last traded at $3,605.8840. 85,780 shares traded hands during trading, a decline of 34% from the average session volume of 129,404 shares. The stock had previously closed at $3,766.96.

The company reported $31.04 earnings per share for the quarter, missing analysts’ consensus estimates of $32.69 by ($1.65). AutoZone had a net margin of 12.78% and a negative return on equity of 65.38%. The company had revenue of $4.63 billion during the quarter, compared to the consensus estimate of $4.64 billion. During the same quarter last year, the company earned $32.52 earnings per share. The business’s revenue was up 8.2% on a year-over-year basis.

AutoZone announced that its board has authorized a stock buyback program on Wednesday, October 8th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. Roth Capital reiterated a “buy” rating and set a $4,650.00 target price (down previously from $4,750.00) on shares of AutoZone in a research report on Wednesday. Baird R W raised shares of AutoZone to a “strong-buy” rating in a report on Thursday, December 4th. Truist Financial cut their target price on shares of AutoZone from $4,499.00 to $4,076.00 and set a “buy” rating for the company in a research note on Wednesday. Weiss Ratings restated a “buy (b-)” rating on shares of AutoZone in a research report on Monday. Finally, BMO Capital Markets dropped their price target on AutoZone from $4,600.00 to $4,400.00 and set an “outperform” rating for the company in a report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, AutoZone presently has a consensus rating of “Moderate Buy” and an average target price of $4,398.31.

Insider Transactions at AutoZone

In related news, SVP K. Michelle Borninkhof sold 300 shares of the business’s stock in a transaction that occurred on Monday, October 27th. The shares were sold at an average price of $3,775.00, for a total transaction of $1,132,500.00. Following the completion of the sale, the senior vice president directly owned 416 shares of the company’s stock, valued at $1,570,400. The trade was a 41.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP John Scott Murphy sold 2,860 shares of the stock in a transaction that occurred on Wednesday, September 24th. The shares were sold at an average price of $4,175.70, for a total transaction of $11,942,502.00. Following the completion of the transaction, the vice president owned 1,244 shares in the company, valued at $5,194,570.80. This represents a 69.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 5,693 shares of company stock worth $23,259,891 in the last quarter. 2.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On AutoZone

Institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC grew its position in shares of AutoZone by 14.4% during the 4th quarter. Brighton Jones LLC now owns 111 shares of the company’s stock worth $356,000 after buying an additional 14 shares during the period. Public Sector Pension Investment Board boosted its stake in AutoZone by 10.7% during the 1st quarter. Public Sector Pension Investment Board now owns 2,299 shares of the company’s stock worth $8,766,000 after acquiring an additional 222 shares during the last quarter. Resona Asset Management Co. Ltd. increased its stake in AutoZone by 5.1% in the first quarter. Resona Asset Management Co. Ltd. now owns 7,052 shares of the company’s stock valued at $26,852,000 after purchasing an additional 345 shares in the last quarter. National Pension Service raised its holdings in AutoZone by 5.1% in the first quarter. National Pension Service now owns 42,339 shares of the company’s stock worth $161,429,000 after purchasing an additional 2,065 shares during the period. Finally, Tokio Marine Asset Management Co. Ltd. raised its holdings in AutoZone by 6.7% in the first quarter. Tokio Marine Asset Management Co. Ltd. now owns 523 shares of the company’s stock worth $1,994,000 after purchasing an additional 33 shares during the period. 92.74% of the stock is owned by institutional investors and hedge funds.

AutoZone Price Performance

The company has a market capitalization of $56.97 billion, a P/E ratio of 23.89, a PEG ratio of 1.67 and a beta of 0.40. The business’s 50-day moving average price is $3,870.19 and its two-hundred day moving average price is $3,899.19.

AutoZone Company Profile

AutoZone, Inc retails and distributes automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.