O’Reilly Automotive (NASDAQ:ORLY) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The firm presently has a $388.00 price target on the specialty retailer’s stock. Zacks Investment Research‘s price target suggests a potential upside of 13.98% from the company’s current price.
According to Zacks, “O’Reilly’s benefits from its store expansions in new as well as existing markets. During the first nine months, ending on Sep 30, 2018, the company opened 171 stores, totaling to a store count of 5,190. Also, offering products to both Do-it-Yourself customers and Do-it-for-Me or professional installers aid O’Reilly in attracting a large number of customers across all markets. It also follows an aggressive share-repurchase policy to reward shareholders. In the past three months, shares of the company have outperformed the industry it belongs to. However, dependence on weather cycles and rising SG&A expenses are headwinds for O’Reilly.”
ORLY has been the subject of several other research reports. Oppenheimer raised their target price on shares of O’Reilly Automotive from $305.00 to $360.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 8th. Morgan Stanley raised their target price on shares of O’Reilly Automotive from $345.00 to $355.00 and gave the stock an “equal weight” rating in a research note on Tuesday, November 6th. BidaskClub upgraded shares of O’Reilly Automotive from a “buy” rating to a “strong-buy” rating in a research note on Thursday, October 11th. JPMorgan Chase & Co. upgraded shares of O’Reilly Automotive from a “neutral” rating to an “overweight” rating and set a $398.00 target price for the company in a research note on Friday, October 19th. Finally, Wells Fargo & Co raised their target price on shares of O’Reilly Automotive from $345.00 to $375.00 and gave the stock an “outperform” rating in a research note on Friday, October 26th. Seven research analysts have rated the stock with a hold rating, eleven have issued a buy rating and two have assigned a strong buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $343.94.
Shares of O’Reilly Automotive stock opened at $340.41 on Wednesday. O’Reilly Automotive has a 1 year low of $217.64 and a 1 year high of $363.20. The company has a current ratio of 0.91, a quick ratio of 0.11 and a debt-to-equity ratio of 6.37. The firm has a market cap of $27.75 billion, a price-to-earnings ratio of 28.75, a price-to-earnings-growth ratio of 1.37 and a beta of 1.10.
O’Reilly Automotive (NASDAQ:ORLY) last issued its quarterly earnings data on Wednesday, October 24th. The specialty retailer reported $4.50 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $4.31 by $0.19. O’Reilly Automotive had a net margin of 14.09% and a return on equity of 259.86%. The company had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.49 billion. On average, research analysts forecast that O’Reilly Automotive will post 16.1 EPS for the current year.
O’Reilly Automotive announced that its board has approved a stock buyback program on Tuesday, November 13th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the specialty retailer to buy up to 3.6% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its shares are undervalued.
In other news, SVP Jeffrey Alan Lauro sold 12,526 shares of the firm’s stock in a transaction on Friday, November 9th. The shares were sold at an average price of $351.06, for a total value of $4,397,377.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 3.12% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. CENTRAL TRUST Co lifted its stake in shares of O’Reilly Automotive by 0.3% in the third quarter. CENTRAL TRUST Co now owns 44,479 shares of the specialty retailer’s stock valued at $15,449,000 after purchasing an additional 154 shares during the period. Acropolis Investment Management LLC lifted its stake in shares of O’Reilly Automotive by 10.6% in the third quarter. Acropolis Investment Management LLC now owns 1,646 shares of the specialty retailer’s stock valued at $572,000 after purchasing an additional 158 shares during the period. Bronfman E.L. Rothschild L.P. lifted its stake in shares of O’Reilly Automotive by 4.8% in the second quarter. Bronfman E.L. Rothschild L.P. now owns 3,471 shares of the specialty retailer’s stock valued at $950,000 after purchasing an additional 160 shares during the period. Levin Capital Strategies L.P. lifted its stake in shares of O’Reilly Automotive by 10.1% in the third quarter. Levin Capital Strategies L.P. now owns 1,741 shares of the specialty retailer’s stock valued at $605,000 after purchasing an additional 160 shares during the period. Finally, Oppenheimer Asset Management Inc. lifted its stake in shares of O’Reilly Automotive by 2.7% in the second quarter. Oppenheimer Asset Management Inc. now owns 6,243 shares of the specialty retailer’s stock valued at $1,709,000 after purchasing an additional 166 shares during the period. Hedge funds and other institutional investors own 85.07% of the company’s stock.
O’Reilly Automotive Company Profile
O'Reilly Automotive, Inc, together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature controls, chassis parts, driveline parts, and engine parts; maintenance items comprising oil, antifreeze products, fluids, filters, wiper blades, lighting products, engine additives, and appearance products; and accessories, such as floor mats, seat covers, and truck accessories.
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