O’Reilly Automotive (ORLY) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of O’Reilly Automotive (NASDAQ:ORLY) from a buy rating to a hold rating in a research note issued to investors on Tuesday morning.

According to Zacks, “Positive long-term demand drivers across the industry might have encouraged O’Reilly to raise its guidance for third-quarter 2018. Further, it is poised to benefit from the opening of stores. During the six months, ending on Jun 30, 2018, the company opened 128 stores. Additionally, O’Reilly is set to gain, with the dual-market strategy i.e. selling products to both Do-it-Yourself customers and Do-it-for-Me or professional installers. It also follows an aggressive share-repurchase policy. Further, the Zacks Consensus Estimate for O’Reilly’s annual earnings has been rising. Also, in the last three month, shares of the company have outperformed the industry it belongs to. However, the dependence on weather cycles for product sales and rising SG&A expenses are concerns for the company. The company also has logistical disadvantage against its competitors, thus, increasing time-to-market for its products.”

A number of other equities research analysts have also weighed in on ORLY. BidaskClub upgraded shares of O’Reilly Automotive from a hold rating to a buy rating in a research note on Friday, June 8th. Wells Fargo & Co boosted their price objective on shares of O’Reilly Automotive from $295.00 to $320.00 and gave the company an outperform rating in a research report on Tuesday, June 12th. They noted that the move was a valuation call. Moffett Nathanson downgraded shares of O’Reilly Automotive from a buy rating to a neutral rating in a research report on Monday, June 25th. Royal Bank of Canada boosted their price objective on shares of O’Reilly Automotive to $319.00 and gave the company an outperform rating in a research report on Thursday, July 12th. Finally, Credit Suisse Group set a $274.00 price objective on shares of O’Reilly Automotive and gave the company a hold rating in a research report on Monday, July 16th. Eight equities research analysts have rated the stock with a hold rating, nine have assigned a buy rating and two have assigned a strong buy rating to the stock. O’Reilly Automotive presently has a consensus rating of Buy and a consensus price target of $327.44.

Shares of ORLY opened at $344.31 on Tuesday. The firm has a market cap of $27.64 billion, a price-to-earnings ratio of 24.49, a P/E/G ratio of 1.37 and a beta of 0.99. The company has a quick ratio of 0.11, a current ratio of 0.92 and a debt-to-equity ratio of 8.45. O’Reilly Automotive has a 1-year low of $190.00 and a 1-year high of $351.65.

O’Reilly Automotive (NASDAQ:ORLY) last announced its earnings results on Wednesday, July 25th. The specialty retailer reported $4.28 earnings per share for the quarter, beating analysts’ consensus estimates of $4.04 by $0.24. The business had revenue of $2.46 billion during the quarter, compared to analyst estimates of $2.43 billion. O’Reilly Automotive had a net margin of 13.42% and a return on equity of 229.48%. The company’s quarterly revenue was up 7.2% compared to the same quarter last year. During the same period in the previous year, the business earned $3.10 EPS. sell-side analysts expect that O’Reilly Automotive will post 15.91 earnings per share for the current year.

In other O’Reilly Automotive news, SVP Scott E. Kraus sold 5,000 shares of the stock in a transaction dated Thursday, July 26th. The shares were sold at an average price of $305.00, for a total transaction of $1,525,000.00. Following the completion of the transaction, the senior vice president now owns 6,477 shares of the company’s stock, valued at approximately $1,975,485. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Thomas Mcfall sold 30,000 shares of the stock in a transaction dated Tuesday, July 31st. The shares were sold at an average price of $305.21, for a total transaction of $9,156,300.00. Following the transaction, the chief financial officer now directly owns 35,438 shares of the company’s stock, valued at approximately $10,816,031.98. The disclosure for this sale can be found here. Insiders have sold a total of 147,181 shares of company stock valued at $46,483,232 in the last three months. Insiders own 3.07% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in ORLY. Victory Capital Management Inc. raised its position in shares of O’Reilly Automotive by 11.9% during the 1st quarter. Victory Capital Management Inc. now owns 8,048 shares of the specialty retailer’s stock valued at $1,991,000 after buying an additional 859 shares in the last quarter. Oppenheimer Asset Management Inc. raised its position in shares of O’Reilly Automotive by 28.5% during the 1st quarter. Oppenheimer Asset Management Inc. now owns 6,077 shares of the specialty retailer’s stock valued at $1,504,000 after buying an additional 1,348 shares in the last quarter. IFP Advisors Inc raised its position in shares of O’Reilly Automotive by 414.3% during the 1st quarter. IFP Advisors Inc now owns 4,027 shares of the specialty retailer’s stock valued at $996,000 after buying an additional 3,244 shares in the last quarter. Toronto Dominion Bank raised its position in shares of O’Reilly Automotive by 22.8% during the 1st quarter. Toronto Dominion Bank now owns 45,196 shares of the specialty retailer’s stock valued at $11,179,000 after buying an additional 8,394 shares in the last quarter. Finally, Brinker Capital Inc. raised its position in shares of O’Reilly Automotive by 18.9% during the 1st quarter. Brinker Capital Inc. now owns 1,727 shares of the specialty retailer’s stock valued at $427,000 after buying an additional 275 shares in the last quarter. Hedge funds and other institutional investors own 85.99% of the company’s stock.

About O’Reilly Automotive

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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