On Friday, PineStone Asset Management Inc. disclosed in a Securities and Exchange Commission filing that it sold AutoZone (AZO 0.56%) shares for an estimated $65.7 million in the third quarter.
What Happened
According to a filing with the U.S. Securities and Exchange Commission released on Friday, PineStone Asset Management Inc. reduced its stake in AutoZone (AZO 0.56%) by 16,388 shares during the third quarter. The estimated value of the shares sold was $65.7 million. After the sale, PineStone reported holding 265,305 shares valued at $1.1 billion as of September 30.
What Else to Know
This was a partial sale; AutoZone now represents 7.1% of PineStone’s 13F assets under management as of September 30.
Top five holdings after the filing:
- NYSE:TSM: $1.8 billion (11.4% of AUM)
- NASDAQ:GOOGL: $1.6 billion (9.7% of AUM)
- NASDAQ:MSFT: $1.5 billion (9.37% of AUM)
- NYSE:AZO: $1.1 billion (7.1% of AUM)
- NYSE:MCO: $1.1 billion (6.7% of AUM)
As of Friday's market close, AutoZone shares were priced at $4,030.17, up 25% over the past year and outperforming the S&P 500's nearly 14% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close on Friday) | $4,030.17 |
| Market Capitalization | $67.4 billion |
| Revenue (TTM) | $18.9 billion |
| Net Income (TTM) | $2.5 billion |
Company Snapshot
- AutoZone offers a comprehensive range of automotive replacement parts, maintenance items, accessories, and related products for cars, SUVs, vans, and light trucks, including both new and remanufactured components.
- The retailer operates a retail and distribution business model, generating revenue through in-store sales, commercial delivery programs, and online channels, including proprietary diagnostic software under the ALLDATA brand.
- It serves a broad customer base of do-it-yourself consumers and professional automotive repair shops across the United States, Mexico, and Brazil.
AutoZone is a leading retailer and distributor in the automotive aftermarket sector, leveraging its extensive store network, product assortment, and integrated commercial programs to maintain a strong market position.
Foolish Take
Montreal-based PineStone Asset Management trimmed its position in AutoZone last quarter, selling about $65.7 million worth of shares but retaining a sizable $1.1 billion stake that still ranks among its top holdings. With AutoZone continuing to represent 7.1% of PineStone’s 13F assets, the move looks more like portfolio fine-tuning than a shift in conviction.
After all, AutoZone’s fundamentals remain strong despite a slight pullback. The retailer’s most recent results showed same-store sales growth of 5.1% and full-year EPS of $144.87, supported by a 14% increase in inventory to fuel new store openings and commercial expansion. CEO Phil Daniele credited continued strength in both the do-it-yourself and commercial segments and reaffirmed the company’s “disciplined approach of increasing earnings and cash flow.”
Shares have fallen about 7% since hitting a record high in mid-September, suggesting investors are consolidating gains after a long rally. For long-term investors, AutoZone’s consistent cash generation, share buybacks, and durable demand for aftermarket parts remain a solid foundation for steady value creation—especially as the company continues to expand domestically and around the world.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly in SEC Form 13F filings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Partial sale: Selling only a portion of a holding, rather than the entire position, in a security or asset.
Holding: The amount of a particular security or asset owned by an investor or fund.
Outperforming: Achieving a higher return than a specified benchmark or index over a given period.
Distribution business model: A strategy where a company sells products through both retail locations and delivery to commercial customers.
Proprietary diagnostic software: Specialized software owned and developed by a company, used for vehicle diagnostics or other technical purposes.
Remanufactured components: Used parts that have been restored to like-new condition for resale.
Commercial delivery programs: Services that provide direct delivery of products to business or professional customers.
TTM: The 12-month period ending with the most recent quarterly report.
