AutoZone VP Sells $12 Million Worth of Stock After the Company’s 5th Straight Earnings Miss

Scott Murphy, one of AutoZone’s top financial executives, sold 2,860 shares of company stock on Sept. 24. (Eva Marie Uzcategui/Bloomberg)

Key Points

• AutoZone executive Scott Murphy acquired 2,860 shares through options and sold them for approximately $12 million.
• AutoZone’s recent earnings missed Wall Street projections for the fifth consecutive quarter, impacted by a $80 million LIFO charge.
• The company’s CEO anticipates continued price increases due to tariffs, but expects the industry to remain disciplined in pricing.

One of AutoZone top financial executives purchased thousands in company stock last week and, on the same day, sold the shares for around $12 million.

Scott Murphy, vice president, controller, exercised an option to acquire 2,860 shares in two separate transactions on Sept. 24, according to a Form 4 filed with the Securities and Exchange Commission.

Murphy bought 1,660 shares for $587.13 apiece, followed by a second purchase of 1,200 shares for $744.85 each, amounting to roughly $1.9 million in total. The options were granted as part of his incentive plan in 2016 and 2017, respectively, and exercised last week, according to a separate SEC filing.

Murphy then sold the 2,860 shares in a series of 18 transactions for a total of around $12 million. Following the sale, he directly owned around 1,244 shares, which were valued at $5.28 million based on Wednesday’s closing price of $4,247.96. Since Sept. 24, shares have gained 1.7%.

AutoZone didn’t respond to a request for comment on Murphy’s transactions.

AutoZone, an automotive parts retailer that counts O’Reilly Automotive and Advance Auto Parts as competitors, reported earnings that missed Wall Street’s projections for the fifth straight quarter on Sept. 23.

The company’s financials were affected by price increases attributed to President Donald Trump’s 25% tariff on imported auto parts. The company uses last-in, first-out accounting, a method that counts the most recently produced items as sold first. An $80 million LIFO charge in the latest quarter weighed on margins and earnings.

CEO Philip Daniele said tariffs would lead to further price hikes, though he noted those costs would be easier for consumers to bear than buying a new vehicle. “We do expect it’s going to continue, and we expect the industry will remain rational and disciplined in its approach to pricing,” Daniele said on the earnings call.

Barron’s selected AutoZone as a stock pick in March, saying that a selloff resulting from trade uncertainty created a buying opportunity. Shares have gained 18% since the article was published and are up 32% this year.

Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com