SPRINGFIELD, Mo.—David E. O'Reilly (NASDAQ:ORLY), the Executive Chairman of the Board at O'Reilly Automotive Inc. (NASDAQ:ORLY), recently sold 5,000 shares of the company's common stock. The shares were sold at a price of $1,230 each, totaling approximately $6.15 million. Following this transaction, Mr. O'Reilly holds 33,386 shares directly, which includes 517 unvested restricted share awards. Additionally, he indirectly owns 183,584 shares through his spouse, as trustee for their children, and the company's 401k plan.
In other recent news, O'Reilly Automotive has been the focus of several analyst firms following its robust Q3 performance. Despite a challenging market landscape, the company managed to uphold its 2024 guidance and sustain same-store sales growth, as noted by Roth/MKM. Mizuho (NYSE:MFG), Truist Securities, TD Cowen, UBS, and Jefferies have all raised their price targets for O'Reilly Automotive, signaling confidence in the company's resilience and potential for growth.
O'Reilly Automotive reported Q3 earnings per share (EPS) of $10.55, slightly below estimates, and revised its 2024 guidance to expect EPS between $40.60 and $41.10 with same-store sales growth in the range of 2-3%. The company also continued its expansion efforts, opening 47 new stores in Q3, bringing the total to 111 for the year.
In response to tariff concerns, O'Reilly Automotive's executives have indicated readiness to pass costs to consumers and noted a reduction in reliance on Chinese suppliers. These recent developments reflect O'Reilly Automotive's strategic adjustments amidst current industry challenges and its commitment to long-term growth.
InvestingPro Insights
The recent stock sale by David E. O'Reilly comes at a time when O'Reilly Automotive Inc. (NASDAQ:ORLY) is trading near its 52-week high, with the stock price at 98.9% of its peak. This aligns with an InvestingPro Tip indicating that the company is "Trading near 52-week high," which could suggest investor confidence in the company's performance.
O'Reilly Automotive's financial health appears robust, with the company boasting a market capitalization of $71.59 billion. The company's revenue for the last twelve months as of Q3 2023 stood at $16.44 billion, with a revenue growth of 5.25%. This solid financial footing is reflected in another InvestingPro Tip, which notes that the company has been "Profitable over the last twelve months."
However, investors should be aware that O'Reilly Automotive is currently trading at a high earnings multiple, with a P/E ratio of 30.54. This valuation metric, combined with the InvestingPro Tip that the stock is "Trading at a high P/E ratio relative to near-term earnings growth," suggests that the stock may be priced at a premium compared to its immediate growth prospects.
For those interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for O'Reilly Automotive, providing a deeper insight into the company's financial position and market performance.
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