Value: I am trying to understand the Q1 report. I believe the key to this company is in the buy back. So here is what is says:
"Under its ongoing share repurchase program, AutoZone repurchased 0.4 million shares of its common stock for $30 million during the first quarter, at an average price of $84 per share. Since 1998, cumulative share repurchases have totaled $3.7 billion, or 82.6 million shares at an average price of $45 per share."
How can you buy back 400K shares at $84 per share and spend only 30M? shouldn't it be $75 per share?
Also, why is there only 400K shares this Q? At the rate of 82.6M shares over 5 years (20 Quaters), 0.4M shares represent a 90% reduction in the effort to buy back:
Are they hiding the cash to do more buy back in the future? Why not now, unless they expect AZO prices to go lower soon? Hope not.
I am a little upset the buyback was not more. I just am wondering that they may have slowed the buybacks to keep the debt from increasing. At 0.4 million shares that is only like a 3 percent annual buyback rate, which is not enough imho. Anyway, I'll give AZO another quarter before I re-assess the situation. I like stocks with a minimum of 20 percent growth which is (revenue percentage gain + loss in shares outstanding). I will never buy a company with a net positive shares outstanding gain since it is corporate shareholder theft, seems to be working since I have averaged 20 percent annual gains doing this.