Schroder Investment Increases Stake in AutoZone by 5.8%

Investment firm Schroder Investment Management Group has raised its stake in AutoZone, Inc. (NYSE: AZO) by 5.8% during the third quarter, according to a recent Form 13F filing with the Securities and Exchange Commission (SEC). Following this acquisition, Schroder now holds 97,063 shares, valued at approximately $414.8 million. This increase reflects a growing interest among institutional investors in AutoZone, which is headquartered in Memphis, Tennessee.

Other significant investment movements include Laurel Wealth Advisors LLC, which raised its stake dramatically by 371,123% in the second quarter, bringing its total holdings to 935,482 shares worth around $3.47 billion. Additionally, Norges Bank acquired a new stake in AutoZone worth about $981.2 million, while Vontobel Holding Ltd. increased its holdings by 277.3%, now owning 102,567 shares valued at $440 million.

Investment activity has not been limited to these entities. Evelyn Partners Investment Management Services Ltd. significantly boosted its position by 1,185.5% during the second quarter, and Victory Capital Management Inc. increased its stake by 401.2% in the third quarter. Collectively, institutional investors own 92.74% of AutoZone’s stock.

Analyst Ratings and Market Performance

Recent analysis has shown a positive outlook for AutoZone, with several research firms adjusting their price targets. Evercore raised its price objective from $4,100 to $4,125, maintaining an “outperform” rating. Meanwhile, TD Cowen reaffirmed its “buy” rating, and Truist Financial slightly adjusted its target from $4,076 to $4,045. Citigroup increased its target from $4,200 to $4,300, while Barclays lifted its price target from $3,800 to $3,900.

MarketBeat reports that AutoZone currently enjoys a consensus rating of “Moderate Buy” and a consensus price target of approximately $4,311.57. Notably, one analyst has issued a “Strong Buy” rating, whereas twenty have given it a “Buy” rating, and six have assigned a “Hold” rating.

Insider Activity and Stock Performance

In related insider trading news, Michael A. George, a director at AutoZone, purchased 145 shares at an average price of $3,398.13 per share on December 22, 2023, bringing his total to 566 shares valued at approximately $1.92 million. This acquisition represents a 34.44% increase in his holdings. Conversely, George R. Mrkonic, Jr. sold 97 shares at an average price of $3,341.99 on January 2, 2024, resulting in a total value of $324,173.03 and a 2.65% decrease in his position.

Insider activity over the past three months shows a total of 347 shares acquired, valued at around $1.18 million, while 9,447 shares were sold, amounting to approximately $34.18 million. Corporate insiders currently own 2.60% of the company’s stock.

AutoZone’s stock opened at $3,641.03 on Monday, reflecting a twelve-month range of $3,210.72 to $4,388.11. The company has a market capitalization of $60.32 billion and a price-to-earnings (P/E) ratio of 25.51. The firm’s 50-day moving average price stands at $3,621.83, while the 200-day moving average price is $3,816.86.

AutoZone recently released its earnings results on March 3, 2024, reporting earnings per share (EPS) of $27.63, surpassing analysts’ expectations of $27.59. The company’s revenue for the quarter reached $4.27 billion, although it fell short of the anticipated $4.31 billion. Compared to the same quarter last year, AutoZone’s revenue increased by 8.2%, while the company reported a net margin of 12.47%.

Looking ahead, analysts anticipate AutoZone will post an EPS of 152.94 for the current fiscal year. AutoZone continues to be a key player in the retail and distribution of automotive replacement parts and accessories, catering to both do-it-yourself consumers and commercial clients.