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program and how the same has a bearing on its stock price performance (if any). Further, following
the exit of Lampert, a major shareholder in the company, it also made an attempt to advice Johnson,
a minor shareholder in the company, to hold or exit his holding in the company. Overall, through
this paper, an attempt has been made to answer the following five key questions.
1. How has AutoZone’s stock price performed over the previous five years? What other
financial measures can you cite that are consistent with the stock price performance?
2. How does a stock repurchase work? Why would a company use this tactic? What impact
3. How much of AutoZone’s stock price performance should we attribute to the share
repurchase program?
4. Assume for the moment that AutoZone is planning on stopping its share repurchase
program. What would be the best alternative use of those cash flows? Why?
pg. 1