AutoZone, Inc. (AZO), the automotive replacement parts retailer, made a significant announcement on June 14, 2023. The company revealed its intention to carry out a massive $2 billion additional buyback, which accounts for approximately 5% of their market capitalization at the time of the announcement. AutoZone has been consistently repurchasing its shares, earning it the label of an “uber cannibal” according to Mohnish Pabrai, referring to a company that aggressively buys back its own stock. While AutoZone remains an active participant in the realm of uber cannibals due to its ongoing series of buybacks, it has also found a place on another list called the Double Dipper, a custom screen created by InsideArbitrage.
The Double Dipper consists of companies that engage in share buybacks while their insiders independently purchase stock on the open market for their personal portfolios. Notably, AutoZone’s Chief Information Officer, Michelle Borninkhof, was identified as an insider who independently acquired shares of the company during the past week. For further details, you can refer to our last Insider weekends article.