M&T Bank Corp has significantly expanded its investment in O’Reilly Automotive, Inc. (NASDAQ: ORLY) by acquiring an additional 135,903 shares in the second quarter of 2023. According to the bank’s latest 13F filing with the Securities and Exchange Commission (SEC), this increase represents a staggering 1,344.1% growth in its stake, bringing the total number of shares owned to 146,014. As of the most recent filing, the value of M&T Bank Corp’s holdings in O’Reilly Automotive stood at approximately $13.16 million.
Other institutional investors have also made adjustments to their positions in O’Reilly. For instance, Scotia Capital Inc. raised its stake by 72.9% during the first quarter, acquiring an additional 395 shares to reach a total of 937 shares valued at $1.34 million. Similarly, ING Groep NV increased its holdings by an impressive 203.8%, now owning 10,003 shares worth around $14.33 million after buying an additional 6,710 shares.
Thoroughbred Financial Services LLC and Vanguard Group Inc. have also bolstered their investments. Thoroughbred raised its stake by 10.2%, while Vanguard increased its holdings by 1.5%, bringing its total to 5,238,396 shares valued at around $7.50 billion. Collectively, hedge funds and institutional investors now own approximately 85% of O’Reilly Automotive’s stock.
Analysts Provide Mixed Reviews on O’Reilly Automotive Stock
Wall Street analysts have shared their perspectives on O’Reilly shares. TD Cowen recently raised its price target from $112.00 to $125.00, maintaining a “buy” rating. Wells Fargo set a price target of $115.00 and provided an “overweight” rating. Meanwhile, Argus initiated coverage with a “buy” rating and a price objective of $120.00.
In contrast, Barclays set a lower price target of $91.00 while giving the stock an “equal weight” rating. Overall, 19 analysts have rated the stock as a buy, while two have issued hold ratings. According to MarketBeat.com, O’Reilly Automotive holds an average rating of “Moderate Buy” with a consensus price target of $111.89.
O’Reilly Automotive Performance and Future Projections
On October 22, 2023, O’Reilly Automotive announced its earnings results for the third quarter. The company reported earnings per share (EPS) of $0.85, slightly surpassing analysts’ expectations of $0.83. The firm generated revenue of $4.71 billion, exceeding projections of $4.69 billion. Year-over-year, quarterly revenue increased by 7.8% compared to the same period in 2022, when the firm had an EPS of $11.41.
Looking ahead, O’Reilly Automotive has set its FY 2025 guidance at an EPS range of $2.90 to $3.00. Analysts forecast the company will report $43.94 EPS for the current year.
In terms of market performance, O’Reilly Automotive’s stock opened at $99.84 on Wednesday, down 1.4% from previous trading. The firm has a market capitalization of $84.28 billion and a price-to-earnings ratio of 34.59. Its stock has fluctuated between a 12-month low of $78.30 and a high of $108.71.
Insider Trading Activity
In other developments, recent insider transactions have been noteworthy. Senior Vice President Philip M. Hopper sold 3,500 shares on November 26, 2023, at an average price of $101.25, totaling $354,375. Following this transaction, Hopper retained 4,792 shares valued at approximately $485,190, marking a 42.21% decrease in his ownership.
Similarly, Senior Vice President Christopher Andrew Mancini sold 2,355 shares at an average price of $101.31, resulting in a transaction worth $238,585.05. Mancini now holds just 28 shares valued at $2,836.68, a decline of 98.83% in his position. In total, insiders have sold 8,980 shares of company stock worth about $882,335 in the last quarter, while insider ownership remains at 1.01%.
O’Reilly Automotive, Inc. operates as a retailer and supplier of automotive aftermarket parts, tools, and accessories in the United States, Puerto Rico, and Mexico. The company offers a wide range of automotive products, from hard parts to maintenance items and accessories, serving a diverse customer base.
For those interested in further insights on O’Reilly Automotive, the latest 13F filings and insider transactions can be accessed through various financial platforms.
