AutoZone tumbles as margin pressure and international softness overshadow Q3 EPS growth

AutoZone, Inc. (AZO) is down 9.6% today. Here is some analysis on what might have caused this price movement.

Analysis: The selloff appears tied to AutoZone’s fiscal third-quarter results, where investors focused on gross-margin pressure (including a non-cash LIFO impact) and ongoing challenges in international performance, despite higher sales and EPS. With the stock priced for consistency, even a modest profitability headwind can trigger an outsized reaction.

Details:

In its May 26, 2026 earnings release for the quarter ended May 9, 2026, AutoZone posted net sales of about $4.8 billion (up 8.4% year over year) and diluted EPS of $38.07.

Gross margin declined to 52.2% (down 57 basis points), and the company said the decline was driven largely by a 77 basis point net non-cash LIFO impact, partially offset by other improvements.

AutoZone highlighted that international results were “challenged,” with Mexico and Brazil performing similarly to the prior quarter on a constant-currency basis.

AutoZone continued aggressive capital returns, repurchasing 164 thousand shares for $586.3 million during the quarter, leaving roughly $0.8 billion remaining under its authorization.

Sources:

AutoZone (press release), SEC (8-K), MarketScreener

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$AZO Insider Trading Activity

$AZO insiders have traded $AZO stock on the open market 9 times in the past 6 months. Of those trades, 3 have been purchases and 6 have been sales.

Here’s a breakdown of recent trading of $AZO stock by insiders over the last 6 months:

RICHARD CRAIG SMITH (Sr. Vice President) has made 0 purchases and 2 sales selling 9,100 shares for an estimated $33,032,000.
EARL G JR GRAVES has made 0 purchases and 2 sales selling 300 shares for an estimated $997,686.
BRIAN HANNASCH purchased 147 shares for an estimated $498,784
MICHAEL A GEORGE purchased 145 shares for an estimated $492,728
GEORGE R JR MRKONIC has made 0 purchases and 2 sales selling 96 shares for an estimated $323,538.
JAMERE JACKSON (CFO) purchased 55 shares for an estimated $187,742

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

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$AZO Hedge Fund Activity

We have seen 477 institutional investors add shares of $AZO stock to their portfolio, and 775 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC removed 134,042 shares (-99.1%) from their portfolio in Q1 2026, for an estimated $449,687,452
BOSTON PARTNERS removed 100,705 shares (-42.5%) from their portfolio in Q1 2026, for an estimated $337,847,651
NUVEEN, LLC removed 78,427 shares (-48.9%) from their portfolio in Q1 2026, for an estimated $263,108,860
NORTHWESTERN MUTUAL WEALTH MANAGEMENT CO removed 74,930 shares (-96.3%) from their portfolio in Q1 2026, for an estimated $251,377,037
NINETY ONE UK LTD removed 66,724 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $226,294,446
CAPITAL WORLD INVESTORS added 65,041 shares (+136.3%) to their portfolio in Q1 2026, for an estimated $218,201,172
BAILLIE GIFFORD & CO removed 57,789 shares (-40.2%) from their portfolio in Q4 2025, for an estimated $195,991,393

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$AZO Congressional Stock Trading

Members of Congress have traded $AZO stock 3 times in the past 6 months. Of those trades, 1 have been purchases and 2 have been sales.

Here’s a breakdown of recent trading of $AZO stock by members of Congress over the last 6 months:

SENATOR MARKWAYNE MULLIN sold up to $100,000 on 02/25.
REPRESENTATIVE GILBERT RAY CISNEROS, JR. has traded it 2 times. They made 1 purchase worth up to $15,000 on 01/30 and 1 sale worth up to $15,000 on 12/24.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard. You can access data on congressional stock trades through the Quiver Quantitative API Congress trades endpoint.

$AZO Analyst Ratings

Wall Street analysts have issued reports on $AZO in the last several months. We have seen 9 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

JP Morgan issued a "Overweight" rating on 12/18/2025
DA Davidson issued a "Buy" rating on 12/10/2025
Barclays issued a "Overweight" rating on 12/10/2025
Mizuho issued a "Outperform" rating on 12/10/2025
Truist Securities issued a "Buy" rating on 12/10/2025
Roth Capital issued a "Buy" rating on 12/10/2025
UBS issued a "Buy" rating on 12/10/2025

To track analyst ratings and price targets for $AZO, check out Quiver Quantitative's $AZO forecast page.

$AZO Price Targets

Multiple analysts have issued price targets for $AZO recently. We have seen 18 analysts offer price targets for $AZO in the last 6 months, with a median target of $4300.0.

Here are some recent targets:

Max Rakhlenko from TD Cowen set a target price of $4250.0 on 03/16/2026
Brian Nagel from Oppenheimer set a target price of $4300.0 on 03/10/2026
Bill Selesky from Argus Research set a target price of $4325.0 on 03/09/2026
David Bellinger from Mizuho set a target price of $3600.0 on 03/05/2026
Tristan Thomas-Martin from BMO Capital set a target price of $4300.0 on 03/04/2026
Greg Melich from Evercore ISI Group set a target price of $4100.0 on 03/04/2026
Simeon Gutman from Morgan Stanley set a target price of $4020.0 on 03/04/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.