AutoZone (NYSE:AZO) Downgraded to Hold Rating by Mizuho

AutoZone (NYSE:AZO) was downgraded by stock analysts at Mizuho from a “strong-buy” rating to a “hold” rating in a research report issued on Monday,Zacks.com reports.

A number of other brokerages have also issued reports on AZO. UBS Group decreased their target price on shares of AutoZone from $4,800.00 to $4,325.00 and set a “buy” rating for the company in a research report on Wednesday, December 10th. Evercore ISI restated an “outperform” rating and set a $4,100.00 price objective on shares of AutoZone in a research report on Wednesday, December 10th. Cowen reissued a “buy” rating on shares of AutoZone in a research note on Thursday, September 18th. Roth Capital reaffirmed 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, December 10th. Finally, Rothschild & Co Redburn increased their price target on shares of AutoZone from $4,300.00 to $4,700.00 and gave the company a “buy” rating in a report on Tuesday, October 7th. Two analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, AutoZone currently has an average rating of “Moderate Buy” and an average target price of $4,330.84.

AutoZone Price Performance

Shares of NYSE AZO opened at $3,268.38 on Monday. The stock has a fifty day moving average price of $3,649.96 and a 200 day moving average price of $3,865.57. AutoZone has a 1-year low of $3,162.00 and a 1-year high of $4,388.11. The company has a market cap of $54.15 billion, a PE ratio of 22.79, a P/E/G ratio of 1.57 and a beta of 0.42.

AutoZone (NYSE:AZO) last announced its earnings results on Tuesday, December 9th. The company reported $31.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $32.69 by ($1.65). The business had revenue of $4.63 billion for the quarter, compared to analyst estimates of $4.64 billion. AutoZone had a negative return on equity of 65.38% and a net margin of 12.78%.The business’s revenue was up 8.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $32.52 EPS. Analysts anticipate that AutoZone will post 152.94 earnings per share for the current fiscal year.

AutoZone announced that its Board of Directors has approved a share repurchase plan on Wednesday, October 8th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other news, Director Brian Hannasch acquired 147 shares of the stock in a transaction dated Thursday, December 18th. The shares were bought at an average cost of $3,393.09 per share, for a total transaction of $498,784.23. Following the purchase, the director directly owned 962 shares of the company’s stock, valued at approximately $3,264,152.58. This trade represents a 18.04% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director George R. Mrkonic, Jr. sold 97 shares of the stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $3,341.99, for a total transaction of $324,173.03. Following the completion of the transaction, the director directly owned 3,564 shares in the company, valued at approximately $11,910,852.36. This represents a 2.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have acquired 347 shares of company stock valued at $1,179,256 and have sold 3,180 shares valued at $12,465,312. Insiders own 2.60% of the company’s stock.

Institutional Investors Weigh In On AutoZone

Several institutional investors have recently added to or reduced their stakes in the business. McLean Asset Management Corp lifted its stake in AutoZone by 3.6% in the 2nd quarter. McLean Asset Management Corp now owns 87 shares of the company’s stock worth $320,000 after purchasing an additional 3 shares in the last quarter. NBC Securities Inc. increased its stake in AutoZone by 0.9% in the 2nd quarter. NBC Securities Inc. now owns 347 shares of the company’s stock worth $1,288,000 after purchasing an additional 3 shares during the period. Valeo Financial Advisors LLC boosted its position in AutoZone by 4.3% during the 2nd quarter. Valeo Financial Advisors LLC now owns 72 shares of the company’s stock valued at $267,000 after buying an additional 3 shares during the period. Ritholtz Wealth Management increased its holdings in AutoZone by 0.3% during the 2nd quarter. Ritholtz Wealth Management now owns 1,179 shares of the company’s stock valued at $4,377,000 after purchasing an additional 3 shares during the period. Finally, Pittenger & Anderson Inc. raised its holdings in shares of AutoZone by 4.3% during the second quarter. Pittenger & Anderson Inc. now owns 72 shares of the company’s stock valued at $267,000 after acquiring an additional 3 shares in the last quarter. 92.74% of the stock is owned by hedge funds and other institutional investors.

Key AutoZone News

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: Brokerage consensus remains constructive — analysts collectively rate AZO a “Moderate Buy,” which supports baseline investor demand and can cushion downside. AutoZone, Inc. (NYSE:AZO) Given Consensus Rating of “Moderate Buy” by Brokerages
• Neutral Sentiment: A recent analyst piece lays out a shifting investment story for AutoZone (valuation, margin pressure and slower comps), useful context for longer-term positioning but not a single near-term catalyst. What Recent Developments Mean For The Changing AutoZone AZO Investment Story
• Negative Sentiment: Mizuho downgraded AZO from Outperform to Neutral and trimmed its price target (citing valuation and nearer?term earnings visibility), a direct sell?side catalyst that likely pressured the stock. AutoZone downgraded to neutral from outperform at Mizuho
• Negative Sentiment: Company insiders disclosed small director stock sales in early January — Earl G. Graves, Jr. sold 250 shares and George R. Mrkonic, Jr. sold 97 shares. While amounts are modest relative to their holdings, the filings can amplify near?term negative sentiment. Earl G. Graves Jr SEC filing George R. Mrkonic Jr SEC filing
• Negative Sentiment: Recent quarterly results missed EPS and revenue estimates modestly (reported Dec. 9), which worsens near?term earnings visibility and likely factored into analyst caution. AZO company financials and earnings summary

AutoZone Company Profile

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.