Is AutoZone Inc. (AZO) Splitting in the Near Future?
Monday, Jan 20, 2025 10:02 pm ET
3min read AutoZone Inc. (AZO) has been a standout performer in the retail sector, with a strong track record of earnings and revenue growth. As the company's stock price continues to rise, investors are speculating about a potential stock split in the near future. In this article, we will explore the factors that suggest AutoZone could be considering a stock split and analyze the company's financial performance and market conditions to support this hypothesis.
AutoZone's stock price has surged by 179.62% over the past five years, reaching $3,228.40 as of January 19, 2025. This significant increase in share price often prompts companies to split their stocks to make them more affordable for a broader range of investors. Additionally, AutoZone has a history of stock splits, with two splits occurring in 1992 and 1994. This historical pattern suggests that the company is not averse to splitting its stock when the time is right.
AZO Interval Closing Price
| Name |
|---|
| Date |
| Interval Closing Price(USD) |
| AutozoneAZO |
| 20200117-20250117 |
| 3.23K |
AutoZone's strong financial performance is another indicator that the company could be considering a stock split. In 2024, the company's revenue increased by 5.92% to $18.49 billion, and earnings grew by 5.30% to $2.66 billion. Analysts have a positive outlook on the company, with an average rating of "Strong Buy" and a 12-month stock price forecast of $3,213.47, which represents a 3.06% increase from the current price. This suggests that the company's stock is undervalued and has room for growth, potentially leading to a stock split.
Moreover, AutoZone's commitment to share buybacks supports the idea that management is confident in the company's future prospects and is willing to invest in its own stock. The company's share repurchases have driven up the stock price and made a stock split more likely.
In conclusion, AutoZone's current share price, historical pattern of stock splits, strong financial performance, and commitment to share buybacks suggest that the company could be considering a stock split in the near future. However, the final decision will depend on various factors, including the company's financial performance, market conditions, and management's assessment of the company's future prospects. Investors should monitor the company's financial performance and any announcements regarding a potential stock split to make informed investment decisions.
