Bank of America Begins Coverage on O'Reilly Automotive (NASDAQ:ORLY)

Key Points

• Bank of America initiated coverage of O’Reilly Automotive with a Buy rating and a $106 price target, implying approximately 16.25% upside. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $107.25.
• O’Reilly reported quarterly earnings of $0.86 per share, in line with estimates, while revenue reached $4.89 billion and increased 8.1% year over year.
• The stock recently traded at $91.18, with institutional investors holding approximately 85% of shares. Company insiders sold 6,000 shares worth about $550,530 over the past 90 days.

Equities research analysts at Bank of America initiated coverage on shares of O'Reilly Automotive (NASDAQ:ORLY - Get Free Report) in a research note issued to investors on Monday. The firm set a "buy" rating and a $106.00 price target on the specialty retailer's stock. Bank of America's price objective suggests a potential upside of 16.25% from the company's current price.

A number of other research firms have also recently weighed in on ORLY. Roth Capital reissued a "buy" rating and issued a $111.00 target price (up from $109.00) on shares of O'Reilly Automotive in a research note on Friday, July 31st. Morgan Stanley decreased their price target on shares of O'Reilly Automotive from $112.00 to $108.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Wolfe Research set a $98.00 price target on shares of O'Reilly Automotive in a research report on Wednesday, July 15th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of O'Reilly Automotive in a research report on Monday, August 3rd. Finally, DA Davidson reaffirmed a "buy" rating and set a $106.00 target price on shares of O'Reilly Automotive in a research report on Wednesday, September 16th. Seventeen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $107.25.

O'Reilly Automotive Stock Performance

NASDAQ:ORLY traded up $1.26 during mid-day trading on Monday, hitting $91.18. 696,649 shares of the company's stock traded hands, compared to its average volume of 6,378,077. O'Reilly Automotive has a 1 year low of $82.59 and a 1 year high of $102.46. The firm's 50 day simple moving average is $87.23 and its 200 day simple moving average is $89.17. The company has a market cap of $73.76 billion, a PE ratio of 29.05, a price-to-earnings-growth ratio of 2.23 and a beta of 0.54.

O'Reilly Automotive (NASDAQ:ORLY - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The specialty retailer reported $0.86 earnings per share for the quarter, meeting analysts' consensus estimates of $0.86. The company had revenue of $4.89 billion during the quarter, compared to analysts' expectations of $4.86 billion. O'Reilly Automotive had a net margin of 14.27% and a negative return on equity of 232.45%. The firm's revenue for the quarter was up 8.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.78 EPS. O'Reilly Automotive has set its FY 2026 guidance at 3.200-3.300 EPS. On average, research analysts expect that O'Reilly Automotive will post 3.28 earnings per share for the current fiscal year.

Insider Activity

In related news, SVP Christopher Mancini sold 3,000 shares of the stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $93.00, for a total transaction of $279,000.00. Following the sale, the senior vice president directly owned 189 shares of the company's stock, valued at $17,577. This trade represents a 94.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Maria Sastre sold 2,000 shares of the company's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $91.85, for a total transaction of $183,700.00. Following the sale, the director directly owned 14,970 shares of the company's stock, valued at $1,374,994.50. The trade was a 11.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 6,000 shares of company stock valued at $550,530. Corporate insiders own 0.77% of the company's stock.

Institutional Investors Weigh In On O'Reilly Automotive

A number of hedge funds have recently added to or reduced their stakes in ORLY. Signaturefd LLC raised its stake in O'Reilly Automotive by 8.3% during the third quarter. Signaturefd LLC now owns 23,771 shares of the specialty retailer's stock valued at $2,030,000 after buying an additional 1,815 shares in the last quarter. Citizens Financial Group Inc. RI raised its holdings in O'Reilly Automotive by 0.5% during the third quarter. Citizens Financial Group Inc. RI now owns 83,242 shares of the specialty retailer's stock worth $7,110,000 after purchasing an additional 410 shares in the last quarter. Gibbs Wealth Management boosted its stake in O'Reilly Automotive by 45.4% during the third quarter. Gibbs Wealth Management now owns 7,796 shares of the specialty retailer's stock valued at $666,000 after buying an additional 2,434 shares in the last quarter. Wedbush Securities Inc. boosted its holdings in O'Reilly Automotive by 7.6% during the third quarter. Wedbush Securities Inc. now owns 22,012 shares of the specialty retailer's stock worth $1,880,000 after buying an additional 1,549 shares in the last quarter. Finally, BIP Wealth LLC boosted its position in shares of O'Reilly Automotive by 3.0% in the 3rd quarter. BIP Wealth LLC now owns 4,807 shares of the specialty retailer's stock valued at $411,000 after purchasing an additional 142 shares during the period. Institutional investors and hedge funds own 85.00% of the company's stock.

O'Reilly Automotive Company Profile

O'Reilly Automotive, Inc is a specialty retailer of automotive aftermarket parts, tools, supplies and accessories. The company serves both do-it-yourself customers and professional service technicians, offering products used for vehicle maintenance, repair and customization. Its merchandise includes replacement parts, batteries, filters, lighting products, shop equipment, automotive chemicals and related accessories.

Founded in 1957 by the O'Reilly family, the company began as a single store in Springfield, Missouri.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.