Quantitative Investment Management Boosts AutoZone Stake by 346%

Quantitative Investment Management LLC has increased its stake in AutoZone, Inc. (NYSE: AZO) by a significant 345.9% during the third quarter of 2023, according to a recent filing with the Securities and Exchange Commission. The institutional investor now owns 330 shares of AutoZone, valued at approximately $1.42 million as of the end of the quarter, after acquiring an additional 256 shares.

A wave of adjustments by other institutional investors has also been observed in AutoZone’s stock. Brighton Jones LLC enhanced its holdings by 14.4% in the fourth quarter, bringing its total to 111 shares worth about $356,000 after buying 14 additional shares. Similarly, Sivia Capital Partners LLC entered a new stake in AutoZone during the second quarter, valued at $356,000. AE Wealth Management LLC raised its investment by 7.2%, now owning 74 shares worth $276,000, while Prospera Financial Services Inc. increased its position by 2.4%, owning 304 shares valued at $1.13 million post-acquisition. Campbell & CO Investment Adviser LLC also made a new investment in the company worth about $245,000.

Institutional investors and hedge funds now control 92.74% of AutoZone’s stock, reflecting strong confidence in the company’s future.

Analysts Adjust AutoZone Ratings and Price Targets

Wall Street analysts have recently updated their outlook on AutoZone. Wells Fargo & Company reduced its target price from $4,700 to $4,500 while maintaining an “overweight” rating. Argus upgraded AutoZone from a “hold” to a “buy” rating, setting a price target of $4,325. Jefferies Financial Group reaffirmed its “buy” rating with a $4,400 target, and Oppenheimer raised its price objective from $4,150 to $4,300. UBS Group also set a target price of $4,800 in a recent note.

Currently, one analyst has rated AutoZone with a Strong Buy rating, twenty-one have given a Buy rating, and six have issued a Hold rating. According to data from MarketBeat, the stock holds a consensus rating of “Moderate Buy” with a consensus target price of $4,318.38.

AutoZone’s Current Market Performance

As of the latest trading session, AutoZone shares opened at $3,612.86. The stock has a fifty-day moving average of $3,644.59 and a 200-day moving average of $3,809.00. With a market capitalization of $59.87 billion, AutoZone has a price-to-earnings (P/E) ratio of 25.31 and a P/E/G ratio of 1.90. The stock has experienced a fifty-two week low of $3,210.72 and a high of $4,388.11.

In its latest earnings report released on March 3, 2024, AutoZone reported earnings per share (EPS) of $27.63, surpassing the consensus estimate of $27.59 by $0.04. The company achieved a net margin of 12.47% and a return on equity of -72.31%. Revenue for the quarter reached $4.27 billion, slightly below the estimate of $4.31 billion, though this figure represents an 8.2% increase compared to the same quarter in the previous year. Analysts project that AutoZone will post an average of 152.94 earnings per share for the current fiscal year.

In addition to these developments, insider transactions have also been noteworthy. Director Earl G. Graves, Jr. sold 250 shares on January 2, 2024, at an average price of $3,295.00, totaling $823,750.00. Following this sale, Graves holds 4,887 shares, valued at approximately $16.1 million. Conversely, Director Brian Hannasch purchased 147 shares at an average cost of $3,393.09, amounting to $498,784.23. Following this transaction, Hannasch owns 962 shares, valued at around $3.26 million.

Over the past ninety days, insiders have sold a total of 9,447 shares worth approximately $34.18 million. Currently, company insiders own 2.60% of AutoZone’s stock.

AutoZone, Inc., headquartered in Memphis, Tennessee, specializes in the retail and distribution of automotive replacement parts and accessories. The company serves both do-it-yourself consumers and commercial clients, providing a comprehensive selection of aftermarket components and maintenance items for a wide range of vehicles.