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O'Reilly Automotive (NASDAQ:ORLY) Hits New 12-Month High - Still a Buy?

O'Reilly Automotive logo with Retail/Wholesale background

Key Points

  • O'Reilly Automotive's stock recently reached a new 52-week high of $100.60 with a last trading price of $99.37, indicating strong market performance.
  • Analysts are bullish on the stock, with a consensus buy rating and an average price target increase to $102.22, reflecting positive sentiment in the market.
  • Despite posting earnings that met expectations, the company recorded a negative return on equity of 181.53%, raising questions about its financial health relative to growth.
  • MarketBeat previews top five stocks to own in September.

Shares of O'Reilly Automotive, Inc. (NASDAQ:ORLY - Get Free Report) reached a new 52-week high during trading on Wednesday . The company traded as high as $100.60 and last traded at $99.37, with a volume of 768401 shares traded. The stock had previously closed at $98.90.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on ORLY. Citigroup upped their price objective on shares of O'Reilly Automotive from $104.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, July 25th. Royal Bank Of Canada upped their price objective on shares of O'Reilly Automotive from $98.00 to $104.00 and gave the company an "outperform" rating in a research note on Friday, July 25th. JPMorgan Chase & Co. upped their price objective on shares of O'Reilly Automotive from $101.00 to $113.00 and gave the company an "overweight" rating in a research note on Monday, July 21st. Morgan Stanley reaffirmed an "overweight" rating on shares of O'Reilly Automotive in a research note on Thursday, April 24th. Finally, UBS Group upped their price objective on shares of O'Reilly Automotive from $105.00 to $115.00 and gave the company a "buy" rating in a research note on Thursday, July 24th. Two investment analysts have rated the stock with a hold rating, sixteen have given a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $102.22.

Check Out Our Latest Analysis on ORLY

O'Reilly Automotive Trading Up 0.3%

The firm's fifty day moving average price is $91.83 and its 200 day moving average price is $90.26. The stock has a market capitalization of $84.26 billion, a price-to-earnings ratio of 35.27, a price-to-earnings-growth ratio of 2.63 and a beta of 0.58.

O'Reilly Automotive (NASDAQ:ORLY - Get Free Report) last released its earnings results on Wednesday, July 23rd. The specialty retailer reported $0.78 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.78. The company had revenue of $4.53 billion for the quarter, compared to analyst estimates of $4.54 billion. O'Reilly Automotive had a net margin of 14.15% and a negative return on equity of 181.53%. The firm's quarterly revenue was up 5.9% on a year-over-year basis. During the same period in the prior year, the business earned $10.55 EPS. On average, analysts forecast that O'Reilly Automotive, Inc. will post 43.94 earnings per share for the current fiscal year.

Insider Buying and Selling at O'Reilly Automotive

In other O'Reilly Automotive news, SVP Mark Joseph Merz sold 5,050 shares of the stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $99.07, for a total value of $500,303.50. Following the sale, the senior vice president directly owned 2,876 shares of the company's stock, valued at approximately $284,925.32. This represents a 63.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director John Raymond Murphy sold 3,000 shares of the stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $91.93, for a total transaction of $275,800.00. Following the completion of the sale, the director directly owned 4,560 shares in the company, valued at approximately $419,216. This represents a 39.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 67,840 shares of company stock valued at $6,421,556 in the last quarter. Corporate insiders own 1.01% of the company's stock.

Institutional Investors Weigh In On O'Reilly Automotive

A number of large investors have recently modified their holdings of ORLY. Bank Pictet & Cie Europe AG increased its position in shares of O'Reilly Automotive by 3.5% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 35,291 shares of the specialty retailer's stock valued at $41,848,000 after purchasing an additional 1,208 shares during the last quarter. American Century Companies Inc. increased its position in shares of O'Reilly Automotive by 2.9% in the 4th quarter. American Century Companies Inc. now owns 5,682 shares of the specialty retailer's stock valued at $6,738,000 after purchasing an additional 160 shares during the last quarter. Trexquant Investment LP purchased a new stake in shares of O'Reilly Automotive in the 4th quarter valued at approximately $5,380,000. World Investment Advisors increased its position in shares of O'Reilly Automotive by 23.4% in the 4th quarter. World Investment Advisors now owns 660 shares of the specialty retailer's stock valued at $783,000 after purchasing an additional 125 shares during the last quarter. Finally, Arete Wealth Advisors LLC purchased a new stake in shares of O'Reilly Automotive in the 4th quarter valued at approximately $210,000. 85.00% of the stock is owned by hedge funds and other institutional investors.

O'Reilly Automotive Company Profile

(Get Free Report)

O'Reilly Automotive, Inc, together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, and Mexico. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories.

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