O'Reilly Automotive (NASDAQ:ORLY) Reaches New 52-Week Low - Should You Sell?

Key Points

• O'Reilly Automotive shares fell to a new 52-week low, trading as low as $85.03 and ending near $85.56, down about 1.9% on the day.
• Wall Street remains broadly optimistic despite the stock weakness, with analysts maintaining mostly Buy/Overweight ratings and an average price target of $112.25.
• Recent earnings topped expectations, as the company reported $0.72 EPS on $4.56 billion in revenue, both above consensus, while insiders have recently sold shares.

O'Reilly Automotive, Inc. (NASDAQ:ORLY - Get Free Report) shares hit a new 52-week low on Monday . The company traded as low as $85.03 and last traded at $85.5580, with a volume of 350301 shares changing hands. The stock had previously closed at $86.84.

Analyst Ratings Changes

A number of analysts recently issued reports on ORLY shares. Morgan Stanley reiterated an "overweight" rating and issued a $112.00 price target on shares of O'Reilly Automotive in a report on Thursday, April 30th. TD Cowen reiterated a "buy" rating and issued a $117.00 target price (up from $115.00) on shares of O'Reilly Automotive in a report on Friday, May 1st. DA Davidson increased their price target on O'Reilly Automotive from $110.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Mizuho increased their price target on O'Reilly Automotive from $105.00 to $110.00 and gave the stock an "outperform" rating in a research report on Friday, May 8th. Finally, Wells Fargo & Company restated an "overweight" rating and set a $110.00 price target (up from $105.00) on shares of O'Reilly Automotive in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $112.25.

O'Reilly Automotive Trading Down 1.9%

The stock has a market cap of $70.60 billion, a PE ratio of 27.92, a P/E/G ratio of 1.92 and a beta of 0.53. The business's 50-day moving average price is $91.27 and its 200-day moving average price is $92.88.

O'Reilly Automotive (NASDAQ:ORLY - Get Free Report) last announced its earnings results on Wednesday, April 29th. The specialty retailer reported $0.72 earnings per share for the quarter, beating the consensus estimate of $0.69 by $0.03. O'Reilly Automotive had a net margin of 14.30% and a negative return on equity of 263.22%. The company had revenue of $4.56 billion during the quarter, compared to the consensus estimate of $4.46 billion. During the same period last year, the firm earned $9.35 earnings per share. O'Reilly Automotive's revenue was up 10.2% compared to the same quarter last year. O'Reilly Automotive has set its FY 2026 guidance at 3.150-3.250 EPS. As a group, analysts predict that O'Reilly Automotive, Inc. will post 3.24 earnings per share for the current year.

Insider Activity

In other news, Director Thomas Hendrickson sold 1,200 shares of the firm's stock in a transaction on Friday, May 29th. The stock was sold at an average price of $88.32, for a total value of $105,984.00. Following the completion of the sale, the director owned 19,675 shares of the company's stock, valued at $1,737,696. This trade represents a 5.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John Raymond Murphy sold 2,595 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $88.67, for a total value of $230,098.65. Following the transaction, the director directly owned 4,000 shares in the company, valued at $354,680. This represents a 39.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 105,730 shares of company stock worth $9,815,388. Company insiders own 0.77% of the company's stock.

Institutional Trading of O'Reilly Automotive

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in shares of O'Reilly Automotive by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 79,730,143 shares of the specialty retailer's stock worth $7,272,186,000 after buying an additional 458,613 shares during the last quarter. State Street Corp grew its holdings in shares of O'Reilly Automotive by 0.4% during the fourth quarter. State Street Corp now owns 37,206,098 shares of the specialty retailer's stock valued at $3,393,568,000 after buying an additional 140,387 shares during the last quarter. Geode Capital Management LLC increased its position in shares of O'Reilly Automotive by 1.6% in the 4th quarter. Geode Capital Management LLC now owns 24,140,497 shares of the specialty retailer's stock valued at $2,201,555,000 after acquiring an additional 372,896 shares during the period. Wellington Management Group LLP increased its position in shares of O'Reilly Automotive by 25.1% in the 4th quarter. Wellington Management Group LLP now owns 14,755,276 shares of the specialty retailer's stock valued at $1,345,829,000 after acquiring an additional 2,964,945 shares during the period. Finally, Norges Bank purchased a new position in O'Reilly Automotive in the 4th quarter worth $1,134,311,000. 85.00% of the stock is currently owned by institutional investors and hedge funds.

O'Reilly Automotive Company Profile

O'Reilly Automotive, Inc is a leading retailer and distributor in the automotive aftermarket, supplying parts, tools, supplies and accessories for both professional service providers and do‑it‑yourself (DIY) customers. The company's product assortment covers replacement parts, maintenance items, performance parts, collision components and shop equipment, complemented by diagnostic tools, batteries, chemicals and consumables. O'Reilly serves customers through company-operated retail stores, commercial sales programs for repair shops and maintenance fleets, and digital channels that support parts lookup, ordering and fulfillment.

The company operates a broad supply chain that includes regional distribution centers to support rapid replenishment of store inventory and commercial deliveries.

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