O’Reilly Automotive (NASDAQ:ORLY) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The firm currently has a $388.00 price objective on the specialty retailer’s stock. Zacks Investment Research‘s price target suggests a potential upside of 13.98% from the stock’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.”

Other equities research analysts have also issued reports about the stock. BidaskClub lowered shares of O’Reilly Automotive from a “strong-buy” rating to a “buy” rating in a report on Saturday, September 15th. Bank of America reiterated a “top pick” rating and set a $390.00 target price (up from $330.00) on shares of O’Reilly Automotive in a report on Monday, September 17th. Jefferies Financial Group increased their target price on shares of O’Reilly Automotive from $350.00 to $375.00 and gave the stock a “buy” rating in a report on Friday, October 26th. Wells Fargo & Co restated a “buy” rating and issued a $345.00 price objective on shares of O’Reilly Automotive in a report on Wednesday, October 24th. Finally, Wolfe Research lowered shares of O’Reilly Automotive from an “outperform” rating to a “market perform” rating in a report on Friday, October 26th. Seven investment analysts have rated the stock with a hold rating, eleven have given a buy rating and two have assigned a strong buy rating to the company. O’Reilly Automotive has an average rating of “Buy” and a consensus target price of $343.94.

O’Reilly Automotive stock opened at $340.41 on Wednesday. The company 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 has a 52-week low of $217.64 and a 52-week 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.

O’Reilly Automotive (NASDAQ:ORLY) last released its earnings results on Wednesday, October 24th. The specialty retailer reported $4.50 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $4.31 by $0.19. The company had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.49 billion. O’Reilly Automotive had a net margin of 14.09% and a return on equity of 259.86%. Equities analysts expect that O’Reilly Automotive will post 16.1 earnings per share for the current fiscal year.

O’Reilly Automotive announced that its Board of Directors has authorized a share buyback plan on Tuesday, November 13th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the specialty retailer to repurchase up to 3.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 3.12% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently made changes to their positions in ORLY. CENTRAL TRUST Co grew its position in shares of O’Reilly Automotive by 0.3% in the 3rd quarter. CENTRAL TRUST Co now owns 44,479 shares of the specialty retailer’s stock valued at $15,449,000 after buying an additional 154 shares during the last quarter. Acropolis Investment Management LLC grew its position in shares of O’Reilly Automotive by 10.6% in the 3rd quarter. Acropolis Investment Management LLC now owns 1,646 shares of the specialty retailer’s stock valued at $572,000 after buying an additional 158 shares during the last quarter. Bronfman E.L. Rothschild L.P. grew its position in shares of O’Reilly Automotive by 4.8% in the 2nd quarter. Bronfman E.L. Rothschild L.P. now owns 3,471 shares of the specialty retailer’s stock valued at $950,000 after buying an additional 160 shares during the last quarter. Levin Capital Strategies L.P. grew its position in shares of O’Reilly Automotive by 10.1% in the 3rd quarter. Levin Capital Strategies L.P. now owns 1,741 shares of the specialty retailer’s stock valued at $605,000 after buying an additional 160 shares during the last quarter. Finally, Oppenheimer Asset Management Inc. grew its position in shares of O’Reilly Automotive by 2.7% in the 2nd quarter. Oppenheimer Asset Management Inc. now owns 6,243 shares of the specialty retailer’s stock valued at $1,709,000 after buying an additional 166 shares during the last quarter. Institutional investors and hedge funds 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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