O'Reilly Automotive (NASDAQ:ORLY) Shares Down 5.4% - Time to Sell?

Key Points

• O'Reilly Automotive's shares dropped 5.4% during mid-day trading, closing at $95.70, down from a previous close of $101.21, indicating increased volatility in the stock's performance.
• Analysts have a positive outlook for O'Reilly Automotive, with recent price target increases from firms like Evercore ISI, Morgan Stanley, and JPMorgan, suggesting strong buy sentiments from 17 analysts.
• The company reported earnings per share (EPS) of $0.85 for the last quarter, surpassing expectations, while its revenue saw a 7.8% increase from the previous year, indicating solid operational performance despite stock price fluctuations.

O'Reilly Automotive, Inc. (NASDAQ:ORLY - Get Free Report) fell 5.4% during mid-day trading on Thursday . The company traded as low as $94.02 and last traded at $95.70. 4,508,786 shares traded hands during mid-day trading, a decline of 16% from the average session volume of 5,377,786 shares. The stock had previously closed at $101.21.

Wall Street Analyst Weigh In

A number of research firms have issued reports on ORLY. Evercore ISI raised their price target on shares of O'Reilly Automotive from $108.00 to $110.00 and gave the stock an "outperform" rating in a report on Tuesday, August 12th. Morgan Stanley increased their price objective on shares of O'Reilly Automotive from $105.00 to $115.00 and gave the stock an "overweight" rating in a research note on Thursday. JPMorgan Chase & Co. increased their price objective on shares of O'Reilly Automotive from $101.00 to $113.00 and gave the stock an "overweight" rating in a research note on Monday, July 21st. Weiss Ratings reiterated a "buy (b)" rating on shares of O'Reilly Automotive in a research note on Wednesday, October 8th. Finally, DA Davidson raised their price target on shares of O'Reilly Automotive from $107.00 to $115.00 and gave the company a "buy" rating in a research report on Friday, July 25th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $111.12.

O'Reilly Automotive Price Performance

The firm has a market capitalization of $83.31 billion, a PE ratio of 35.06, a P/E/G ratio of 2.68 and a beta of 0.60. The company's fifty day simple moving average is $103.73 and its 200-day simple moving average is $96.48.

O'Reilly Automotive (NASDAQ:ORLY - Get Free Report) last posted its quarterly earnings data on Wednesday, October 22nd. The specialty retailer reported $0.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.02. The business had revenue of $4.71 billion for the quarter, compared to the consensus estimate of $4.69 billion. O'Reilly Automotive had a net margin of 14.15% and a negative return on equity of 181.53%. The company's revenue was up 7.8% compared to the same quarter last year. During the same period last year, the firm posted $11.41 earnings per share. O'Reilly Automotive has set its FY 2025 guidance at 2.900-3.000 EPS. Analysts forecast that O'Reilly Automotive, Inc. will post 43.94 earnings per share for the current year.

Insider Activity at O'Reilly Automotive

In other news, SVP Carl David Wilbanks sold 88,485 shares of the firm's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $102.54, for a total value of $9,073,251.90. Following the transaction, the senior vice president directly owned 10,305 shares of the company's stock, valued at approximately $1,056,674.70. This trade represents a 89.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, SVP Mark Joseph Merz sold 29,505 shares of the firm's stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $98.25, for a total transaction of $2,898,866.25. Following the completion of the transaction, the senior vice president directly owned 4,234 shares in the company, valued at approximately $415,990.50. This represents a 87.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 125,635 shares of company stock valued at $12,740,916. 1.01% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On O'Reilly Automotive

Hedge funds and other institutional investors have recently modified their holdings of the business. Lindbrook Capital LLC raised its position in O'Reilly Automotive by 2.6% in the 1st quarter. Lindbrook Capital LLC now owns 313 shares of the specialty retailer's stock valued at $448,000 after purchasing an additional 8 shares during the last quarter. Geneos Wealth Management Inc. raised its position in O'Reilly Automotive by 1.2% in the 1st quarter. Geneos Wealth Management Inc. now owns 665 shares of the specialty retailer's stock valued at $953,000 after purchasing an additional 8 shares during the last quarter. Deseret Mutual Benefit Administrators raised its position in O'Reilly Automotive by 3.2% in the 1st quarter. Deseret Mutual Benefit Administrators now owns 291 shares of the specialty retailer's stock valued at $417,000 after purchasing an additional 9 shares during the last quarter. Journey Strategic Wealth LLC raised its position in O'Reilly Automotive by 4.2% in the 1st quarter. Journey Strategic Wealth LLC now owns 221 shares of the specialty retailer's stock valued at $317,000 after purchasing an additional 9 shares during the last quarter. Finally, Foundations Investment Advisors LLC raised its position in O'Reilly Automotive by 2.3% in the 1st quarter. Foundations Investment Advisors LLC now owns 395 shares of the specialty retailer's stock valued at $566,000 after purchasing an additional 9 shares during the last quarter. 85.00% of the stock is owned by hedge funds and other institutional investors.

About O'Reilly Automotive

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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