On September 21, 2023, Domingo Hurtado, Senior Vice President of AutoZone Inc (AZO, Financial), sold 120 shares of the company's stock. This move is part of a broader trend of insider selling at AutoZone Inc, which we will explore in this article.
Who is Domingo Hurtado?
Domingo Hurtado is the Senior Vice President of AutoZone Inc, a leading retailer and distributor of automotive replacement parts and accessories in the Americas. With his extensive experience in the automotive industry, Hurtado plays a crucial role in the company's strategic planning and operations.
About AutoZone Inc
AutoZone Inc is a Fortune 500 company based in Memphis, Tennessee. The company operates through a network of stores in the United States, Puerto Rico, Mexico, and Brazil. Each store carries an extensive product line for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. AutoZone also sells the ALLDATA brand diagnostic and repair software.
Insider Sell Analysis
Over the past year, the insider has sold a total of 210 shares and purchased 0 shares. This recent transaction of selling 120 shares is a continuation of this trend. The insider's selling activities can sometimes be an indicator of the company's future performance. However, it's essential to consider other factors, such as the company's financial health, market conditions, and other insider trading activities.
The insider transaction history for AutoZone Inc shows that there have been 1 insider buys and 22 insider sells over the past year. This suggests a trend towards insider selling, which could be a signal for investors to be cautious.
Stock Price and Valuation
On the day of the insider's recent sell, shares of AutoZone Inc were trading for $2,548.03 apiece, giving the stock a market cap of $45.9 billion. The price-earnings ratio is 19.37, which is higher than the industry median of 16.78 and the company’s historical median price-earnings ratio.
With a price of $2,548.03 and a GuruFocus Value of $2,532.44, AutoZone Inc has a price-to-GF-Value ratio of 1.01. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sell of AutoZone Inc shares may raise some eyebrows, it's crucial to consider the broader context. The company's stock is currently fairly valued, and the overall trend of insider selling could be a signal for investors to be cautious. However, it's always essential to conduct thorough research and consider multiple factors before making investment decisions.
