AutoZone Inc. (AZO) stock falls, “Hold” rating reiterated by Jefferies Group Analysts

AutoZone Inc. (NYSE: AZO) shares fell on in early trade Wednesday with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.

Jefferies Group analysts reiterated its Hold rating on AutoZone Inc. (NYSE: AZO) in a note to investors, making it one of the more closely watched stocks on Wall Street. Jefferies Group currently has a rating of Hold on the stock. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and AutoZone Inc. has secured a consensus one-year price target of $859.80, higher than the opening price of $749.00. AutoZone Inc. stock has a 52-week high of $819.54. Typically, after analysts assign a “reiterated rating” report on a stock, they will subsequently issue recurring revisions, such as a price target change.

U.S. stocks mostly climbed on Wednesday as crude-oil prices traded above $51 a barrel.

The Dow Jones Industrial Average DJIA, +0.18% gained 33 points, or 0.2% at 18,195, the S&P 500 index SPX, +0.07% advanced 2 points, or less than 0.1%, at 2,141, while the Nasdaq Composite Index COMP, -0.08% traded little-changed at 5,240.

U.S. stocks closed higher Tuesday as investors welcomed stronger-than-expected quarterly results from a host of companies

The S&P 500 index SPX, +0.62% finished up 13.10 points, or 0.6%, at 2,139.60, with all 11 main sectors trading higher.

The Dow Jones Industrial Average DJIA, +0.42% rose 75.54 points, or 0.4%, to close at 18,161.94.

Meanwhile, the Nasdaq Composite Index COMP, +0.85% added 44.01 points, or 0.9%, to close at 5,243.84.

Shares of AutoZone Inc. (NYSE: AZO) opened at $749.00 on Monday and traded in a range between, $734.32 and $749.00, and last traded at $739.51, a drop of $14.29 per share or -1.90% over the previous closing price.

AutoZone Inc. (NYSE: AZO) now has a market cap of 21.53B.

AutoZone Inc.Trading Volume

The stock’s average daily volume is 303,197 shares out of a total float 28,958,000 and some 86,961 shares crossed the trading desk yesterday, lower than the average. Momentum traders often use upticks in trading volume to identify heavy volume growth or distribution by institutional investors, so look for trading volume to pick up in the coming days.

However, a single day of significant buy side trading is not enough to assert a trend. As such, market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these have teams of analysts that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re researching.

AutoZone Inc. Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

Traders can make smarter trades when they track the activity of professional investors.

Trades for AutoZone Inc. (NYSE: AZO) have ranged from $681.01 – 819.54, and the stock now has a 50-day MA of $751.16 and 200-day MA of $773.24. Today’s last price is 9.77%% under the 52 week high of $819.54.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings by at least 25% over a 3 year period.

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