PCM Encore LLC Makes New $1.09 Million Investment in AutoZone, Inc. $AZO

PCM Encore LLC purchased a new stake in AutoZone, Inc. (NYSE:AZO) during the 2nd quarter, HoldingsChannel.com reports. The fund purchased 341 shares of the company’s stock, valued at approximately $1,091,000.

Other institutional investors and hedge funds have also recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of AutoZone in the 2nd quarter valued at $3,938,566,000. Norges Bank acquired a new position in shares of AutoZone during the 4th quarter valued at $939,205,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in AutoZone during the second quarter worth $572,885,000. Bank of New York Mellon Corp acquired a new stake in AutoZone in the second quarter worth $335,157,000. Finally, Morgan Stanley grew its holdings in AutoZone by 17.8% in the fourth quarter. Morgan Stanley now owns 492,794 shares of the company’s stock worth $1,671,323,000 after purchasing an additional 74,555 shares during the period. 92.74% of the stock is currently owned by institutional investors.

AutoZone Trading Down 3.8%

AutoZone stock opened at $2,960.32 on Friday. The firm has a market capitalization of $48.34 billion, a price-to-earnings ratio of 20.35, a price-to-earnings-growth ratio of 1.56 and a beta of 0.33. The firm’s fifty day moving average price is $3,057.93 and its two-hundred day moving average price is $3,334.62. AutoZone, Inc. has a 1-year low of $2,902.20 and a 1-year high of $4,388.11.

AutoZone (NYSE:AZO) last posted its earnings results on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, topping the consensus estimate of $36.22 by $1.85. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. The company had revenue of $4.84 billion during the quarter, compared to the consensus estimate of $4.86 billion. During the same period in the previous year, the firm posted $35.36 earnings per share. The firm’s revenue for the quarter was up 8.4% on a year-over-year basis. On average, research analysts forecast that AutoZone, Inc. will post 150.39 EPS for the current year.

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

Analysts Set New Price Targets

Several research firms have weighed in on AZO. Evercore reaffirmed an “outperform” rating on shares of AutoZone in a research note on Tuesday, May 26th. Guggenheim reduced their target price on AutoZone from $4,400.00 to $4,000.00 and set a “buy” rating for the company in a research note on Wednesday, May 27th. BMO Capital Markets decreased their target price on AutoZone from $4,300.00 to $4,000.00 and set an “outperform” rating for the company in a research report on Wednesday, May 27th. Jefferies Financial Group dropped their price target on AutoZone from $4,400.00 to $4,000.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Finally, The Goldman Sachs Group cut their price target on AutoZone from $4,345.00 to $4,096.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $4,029.43.

Insider Transactions at AutoZone

In other news, VP Dennis W. Leriche sold 1,455 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $3,100.00, for a total value of $4,510,500.00. Following the completion of the sale, the vice president directly owned 441 shares of the company’s stock, valued at $1,367,100. This represents a 76.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Brian Hannasch bought 165 shares of the company’s stock in a transaction dated Friday, May 29th. The stock was bought at an average price of $2,987.00 per share, for a total transaction of $492,855.00. Following the acquisition, the director directly owned 1,219 shares of the company’s stock, valued at approximately $3,641,153. This represents a 15.65% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 2.60% of the stock is currently owned by insiders.

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.