O’Reilly Automotive, Inc. (ORLY) Stock Price Up 5.6% Following Strong Earnings

Shares of O’Reilly Automotive, Inc. (NASDAQ:ORLY) rose 5.6% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $215.82 and last traded at $214.00. Approximately 4,258,925 shares traded hands during mid-day trading, an increase of 243% from the average daily volume of 1,242,480 shares. The stock had previously closed at $202.72.

The specialty retailer reported $3.22 EPS for the quarter, beating the Zacks’ consensus estimate of $3.15 by $0.07. O’Reilly Automotive had a net margin of 12.13% and a return on equity of 80.84%. The business had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.34 billion. During the same quarter in the prior year, the business earned $2.90 earnings per share. The firm’s revenue for the quarter was up 5.3% on a year-over-year basis.

O’Reilly Automotive declared that its board has initiated a stock buyback program on Friday, September 1st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the specialty retailer to buy up to 5.8% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its stock is undervalued.

Several research analysts recently issued reports on ORLY shares. J P Morgan Chase & Co reissued a “neutral” rating and issued a $210.00 price target (down previously from $295.00) on shares of O’Reilly Automotive in a research report on Thursday, July 6th. Morgan Stanley lowered shares of O’Reilly Automotive from an “overweight” rating to an “equal weight” rating and dropped their price target for the stock from $200.00 to $195.00 in a research report on Thursday, July 6th. Northcoast Research raised shares of O’Reilly Automotive from a “neutral” rating to a “buy” rating and set a $230.00 price target for the company in a research report on Tuesday, July 18th. They noted that the move was a valuation call. UBS Group AG reissued a “buy” rating and issued a $230.00 price target (down previously from $255.00) on shares of O’Reilly Automotive in a research report on Tuesday, July 25th. Finally, Bank of America Corporation reissued a “buy” rating and issued a $250.00 price target on shares of O’Reilly Automotive in a research report on Tuesday, September 5th. One analyst has rated the stock with a sell rating, eleven have issued a hold rating, nine have issued a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $242.63.

In other news, SVP Randy Johnson sold 1,040 shares of the stock in a transaction that occurred on Tuesday, August 1st. The shares were sold at an average price of $204.44, for a total transaction of $212,617.60. Following the sale, the senior vice president now directly owns 9,232 shares of the company’s stock, valued at $1,887,390.08. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Rosalie Oreilly Wooten sold 5,000 shares of the stock in a transaction that occurred on Friday, August 25th. The shares were sold at an average price of $200.87, for a total transaction of $1,004,350.00. Following the sale, the director now directly owns 72,562 shares in the company, valued at $14,575,528.94. The disclosure for this sale can be found here. Insiders have sold 18,120 shares of company stock worth $3,684,364 over the last ninety days. Insiders own 3.12% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Monetary Management Group Inc. grew its stake in shares of O’Reilly Automotive by 16.3% during the second quarter. Monetary Management Group Inc. now owns 465 shares of the specialty retailer’s stock valued at $102,000 after purchasing an additional 65 shares during the last quarter. Barrett Asset Management LLC grew its stake in shares of O’Reilly Automotive by 261.5% during the second quarter. Barrett Asset Management LLC now owns 470 shares of the specialty retailer’s stock valued at $103,000 after purchasing an additional 340 shares during the last quarter. Proficio Capital Partners LLC grew its stake in shares of O’Reilly Automotive by 23.1% during the first quarter. Proficio Capital Partners LLC now owns 496 shares of the specialty retailer’s stock valued at $119,000 after purchasing an additional 93 shares during the last quarter. Sun Life Financial INC grew its stake in shares of O’Reilly Automotive by 5,107.7% during the second quarter. Sun Life Financial INC now owns 677 shares of the specialty retailer’s stock valued at $148,000 after purchasing an additional 664 shares during the last quarter. Finally, FUKOKU MUTUAL LIFE INSURANCE Co grew its stake in shares of O’Reilly Automotive by 15.9% during the second quarter. FUKOKU MUTUAL LIFE INSURANCE Co now owns 730 shares of the specialty retailer’s stock valued at $160,000 after purchasing an additional 100 shares during the last quarter. 96.66% of the stock is currently owned by institutional investors and hedge funds.

The company has a market cap of $18.84 billion, a price-to-earnings ratio of 18.75 and a beta of 0.78. The company’s 50 day moving average is $208.14 and its 200-day moving average is $218.68.

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About O’Reilly Automotive

O’Reilly Automotive, Inc is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The Company sells its products to both do-it-yourself (DIY) and professional service provider customers. The Company’s product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories.

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