AutoZone (NYSE:AZO) to Buyback $1.50 billion in Outstanding Stock

AutoZone (NYSE:AZO) announced that its board has initiated a stock buyback program on Tuesday, June 16th, RTT News reports. The company plans to repurchase $1.50 billion in shares. This repurchase authorization permits the company to buy up to 3% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

AZO has been the subject of several recent analyst reports. Mizuho reduced their target price on shares of AutoZone from $3,600.00 to $3,200.00 and set a “neutral” rating for the company in a research note on Wednesday, May 27th. Barclays upped their target price on shares of AutoZone from $3,800.00 to $3,900.00 and gave the stock an “overweight” rating in a research note on Wednesday, March 4th. UBS Group set a $4,800.00 target price on shares of AutoZone in a research note on Tuesday, March 3rd. BMO Capital Markets reduced their target price on shares of AutoZone from $4,300.00 to $4,000.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Finally, Robert W. Baird reduced their target price on shares of AutoZone from $3,900.00 to $3,600.00 and set a “neutral” rating for the company in a research note on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, AutoZone has a consensus rating of “Moderate Buy” and an average price target of $4,040.87.

AutoZone Trading Up 0.7%

Shares of NYSE:AZO traded up $22.77 during midday trading on Tuesday, reaching $3,128.25. The company had a trading volume of 622,031 shares, compared to its average volume of 346,044. The company’s 50 day moving average price is $3,355.86 and its 200 day moving average price is $3,500.15. The stock has a market cap of $51.08 billion, a P/E ratio of 21.51, a P/E/G ratio of 1.58 and a beta of 0.35. AutoZone has a 52-week low of $2,928.11 and a 52-week high of $4,388.11.

AutoZone (NYSE:AZO) last released its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, beating 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 business had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.86 billion. During the same period in the prior year, the firm earned $35.36 earnings per share. The company’s revenue was up 8.4% compared to the same quarter last year. Research analysts forecast that AutoZone will post 150.45 EPS for the current fiscal year.

Insider Buying and Selling at AutoZone

In other AutoZone news, Director Brian Hannasch bought 165 shares of AutoZone stock in a transaction that occurred on Friday, May 29th. The shares were bought at an average price of $2,987.00 per share, with a total value of $492,855.00. Following the acquisition, the director owned 1,219 shares in the company, valued at approximately $3,641,153. This trade represents a 15.65% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Earl G. Graves, Jr. sold 50 shares of AutoZone stock in a transaction on Friday, April 10th. The stock was sold at an average price of $3,478.72, for a total transaction of $173,936.00. Following the completion of the transaction, the director directly owned 4,837 shares in the company, valued at approximately $16,826,568.64. The trade was a 1.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.60% of the stock is owned by company 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.