SPRINGFIELD, MO—Justin Christopher Kale, Senior Vice President of Central Store Operations and Sales at O'Reilly (NASDAQ:ORLY) Automotive Inc. (NASDAQ:ORLY), recently sold shares of the company’s stock. According to a recent filing, Kale sold 103 shares of common stock on November 5 at a price of $1,157.56 per share, amounting to a total of $119,228.
In addition to the sale, Kale also exercised stock options to acquire 103 shares at a price of $364.10 per share. Following these transactions, Kale holds 135 shares directly, while also maintaining an indirect holding of 502 shares through the company's 401(k) plan.
These transactions were part of a broader set of activities detailed in the SEC filing, highlighting Kale's ongoing management of his equity holdings in the company.
In other recent news, O'Reilly Automotive has been the subject of several analyst firms' attention following its third-quarter performance. The company reported earnings per share (EPS) of $10.55, falling slightly short of estimates. Despite broader industry challenges, O'Reilly Automotive demonstrated resilience with better comparable store sales than many of its competitors. The company's management revised its 2024 guidance downwards, expecting EPS between $40.60 and $41.10 and same-store sales growth in the range of 2-3%.
In terms of expansion, O'Reilly Automotive opened 47 new stores in the third quarter, bringing the total to 111 for the year. The company's executives indicated readiness to pass tariff costs to consumers and noted a reduction in reliance on Chinese suppliers. These moves reflect O'Reilly Automotive's commitment to long-term growth and resilience in a challenging market landscape.
Several analyst firms, including Roth/MKM, Mizuho (NYSE:MFG), Truist Securities, TD Cowen, UBS, and Jefferies have maintained or upgraded their ratings on O'Reilly Automotive, with price targets ranging from $1,305 to $1,400. These recent developments highlight the company's ability to navigate market challenges and continue its growth trajectory.
InvestingPro Insights
O'Reilly Automotive Inc. (NASDAQ:ORLY) continues to demonstrate strong market performance, with its stock trading near its 52-week high. According to InvestingPro data, the company's market capitalization stands at an impressive $70.36 billion, reflecting investor confidence in the auto parts retailer's business model.
The recent stock sale by Senior Vice President Justin Christopher Kale comes at a time when O'Reilly's financial metrics paint a picture of a robust company. With a P/E ratio of 30.04, the stock is trading at a premium compared to many of its peers, suggesting high growth expectations from investors. This is further supported by the company's solid revenue of $16.44 billion over the last twelve months, with a growth rate of 5.25%.
InvestingPro Tips highlight that O'Reilly has been profitable over the last twelve months and analysts predict continued profitability this year. The company's strong return over the last five years and high return over the last decade underscore its consistent performance, which may explain why executives like Kale might choose to realize some gains.
It's worth noting that while O'Reilly operates with a moderate level of debt, it also maintains a high EBITDA valuation multiple. This could indicate that investors are willing to pay a premium for the company's earnings potential, despite the debt load.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for O'Reilly Automotive, providing deeper insights into the company's financial health and market position.
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