BMO Capital Markets Issues Pessimistic Forecast for AutoZone (NYSE:AZO) Stock Price

AutoZone (NYSE:AZO) had its price target cut by stock analysts at BMO Capital Markets from $4,000.00 to $3,500.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm presently has an “outperform” rating on the stock. BMO Capital Markets’ price target points to a potential upside of 21.07% from the company’s current price.

AZO has been the topic of several other research reports. Weiss Ratings cut shares of AutoZone from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, July 23rd. Truist Financial set a $3,700.00 price target on shares of AutoZone in a report on Wednesday, May 27th. Jefferies Financial Group decreased their price target on shares of 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. Raymond James Financial cut their price objective on AutoZone from $4,000.00 to $3,700.00 and set a “strong-buy” rating for the company in a research report on Wednesday. Finally, DA Davidson reduced their target price on AutoZone from $4,300.00 to $3,750.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $3,788.12.

AutoZone Stock Up 3.1%

Shares of AutoZone stock opened at $2,891.00 on Wednesday. The company has a market capitalization of $47.21 billion, a price-to-earnings ratio of 19.88, a PEG ratio of 1.41 and a beta of 0.34. The stock’s 50-day simple moving average is $2,986.72 and its 200-day simple moving average is $3,205.00. AutoZone has a 52 week low of $2,796.85 and a 52 week high of $4,332.68.

AutoZone (NYSE:AZO) last issued its earnings results on Tuesday, September 22nd. The company reported $56.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.54 by $55.51. AutoZone had a negative return on equity of 80.35% and a net margin of 12.40%.The company had revenue of $6.59 billion for the quarter, compared to the consensus estimate of $6.70 billion. During the same quarter last year, the company earned $48.71 EPS. The firm’s quarterly revenue was up 5.6% on a year-over-year basis. On average, equities analysts expect that AutoZone will post 150.61 earnings per share for the current year.

AutoZone announced that its Board of Directors has authorized a stock repurchase program on Tuesday, June 16th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the company to reacquire up to 3% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Insider Transactions at AutoZone

In related news, VP Dennis LeRiche sold 1,455 shares of the company’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $3,100.00, for a total transaction of $4,510,500.00. Following the sale, the vice president 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 2.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AutoZone

Institutional investors and hedge funds have recently modified their holdings of the stock. Cherry Tree Wealth Management LLC raised its stake in shares of AutoZone by 47,900.0% in the second quarter. Cherry Tree Wealth Management LLC now owns 1,920 shares of the company’s stock valued at $6,136,000 after acquiring an additional 1,916 shares during the period. SkyView Investment Advisors LLC boosted its stake in shares of AutoZone by 11.1% during the 2nd quarter. SkyView Investment Advisors LLC now owns 100 shares of the company’s stock worth $320,000 after purchasing an additional 10 shares during the period. Tidal Investments LLC boosted its stake in shares of AutoZone by 29.6% during the 2nd quarter. Tidal Investments LLC now owns 7,922 shares of the company’s stock worth $25,318,000 after purchasing an additional 1,809 shares during the period. National Pension Service grew its holdings in AutoZone by 3.6% during the 2nd quarter. National Pension Service now owns 45,649 shares of the company’s stock valued at $145,891,000 after purchasing an additional 1,578 shares during the last quarter. Finally, WINTON GROUP Ltd grew its holdings in AutoZone by 48.6% during the 2nd quarter. WINTON GROUP Ltd now owns 110 shares of the company’s stock valued at $352,000 after purchasing an additional 36 shares during the last quarter. Hedge funds and other institutional investors own 92.74% of the company’s stock.

More AutoZone News

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: Profit significantly exceeded expectations: AutoZone reported fiscal fourth-quarter diluted EPS of $56.05, up from $48.71 a year earlier and above analyst estimates of roughly $54.50. Net income rose to $931.6 million, while operating profit increased 10.1% to approximately $1.3 billion. AutoZone fourth-quarter results
• Positive Sentiment: Expansion and market-share gains support the outlook: Quarterly sales increased 5.6% to $6.59 billion, AutoZone opened 175 stores, and management said it is well positioned for fiscal 2027 sales growth. International same-store sales were particularly strong, and analysts highlighted the company’s expanding global store network as a source of future growth. Why AutoZone stock rallied
• Positive Sentiment: Margin gains and capital returns helped investor sentiment: Gross margin improved to 53.3%, aided by tariff refunds and a favorable LIFO comparison. AutoZone also repurchased about $697.5 million of stock during the quarter, supporting per-share earnings.
• Neutral Sentiment: Revenue and comparable-store growth were mixed: Quarterly revenue fell short of forecasts, while domestic same-store sales rose only 1.6% on a constant-currency basis. The earnings beat therefore depended partly on margin benefits that may not recur.
• Negative Sentiment: Analyst downgrade remains an overhang: AutoZone reached a new 12-month low following an analyst downgrade before the earnings-driven rebound, reflecting concerns about slowing comparable sales and the sustainability of recent earnings growth. AutoZone reaches new 12-month low

About AutoZone

AutoZone, Inc is a retailer and distributor of automotive replacement parts, accessories, and maintenance products. The company serves do-it-yourself customers, professional service technicians, and commercial repair businesses through its stores, distribution network, and online platform.

Its product offerings include replacement parts such as batteries, brakes, engine components, and ignition products, along with tools, fluids, filters, and other automotive accessories. AutoZone also provides services such as parts lookup, diagnostic assistance, battery testing and charging, and loaner tools for eligible repairs.

Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates primarily in the United States, with additional locations in Mexico and Brazil.