Morgan Stanley Lowers O’Reilly Automotive (NASDAQ:ORLY) Price Target to $108.00

O’Reilly Automotive (NASDAQ:ORLY) had its target price dropped by equities research analysts at Morgan Stanley from $112.00 to $108.00 in a research report issued on Thursday,Benzinga reports. The firm presently has an “overweight” rating on the specialty retailer’s stock. Morgan Stanley’s target price would indicate a potential upside of 23.44% from the stock’s previous close.

Several other research firms have also issued reports on ORLY. Wolfe Research set a $98.00 target price on O’Reilly Automotive in a research report on Wednesday, July 15th. Mizuho lifted their price objective on shares of O’Reilly Automotive from $105.00 to $110.00 and gave the stock an “outperform” rating in a research note on Friday, May 8th. Truist Financial set a $108.00 price objective on shares of O’Reilly Automotive in a report on Thursday, April 30th. DA Davidson set a $114.00 target price on shares of O’Reilly Automotive and gave the company a “buy” rating in a research note on Wednesday, July 22nd. Finally, Wells Fargo & Company set a $100.00 target price on shares of O’Reilly Automotive in a report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $110.00.

O’Reilly Automotive Price Performance

Shares of ORLY stock traded down $3.13 during trading hours on Thursday, reaching $87.50. The company had a trading volume of 6,285,083 shares, compared to its average volume of 6,772,328. O’Reilly Automotive has a 1-year low of $82.59 and a 1-year high of $108.71. The firm has a market cap of $72.51 billion, a price-to-earnings ratio of 28.56, a P/E/G ratio of 2.01 and a beta of 0.51. The company has a 50 day moving average of $88.32 and a 200 day moving average of $91.74.

O’Reilly Automotive (NASDAQ:ORLY) last announced its quarterly earnings data on Wednesday, July 29th. The specialty retailer reported $0.86 EPS for the quarter, hitting analysts’ consensus estimates of $0.86. The business had revenue of $4.89 billion during the quarter, compared to analysts’ expectations of $4.86 billion. O’Reilly Automotive had a negative return on equity of 263.22% and a net margin of 14.30%.The firm’s quarterly revenue was up 8.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.78 earnings per share. O’Reilly Automotive has set its FY 2026 guidance at 3.200-3.300 EPS. As a group, sell-side analysts forecast that O’Reilly Automotive will post 3.24 EPS for the current fiscal year.

Insider Activity

In other news, SVP Robert Allen Dumas sold 84,600 shares of the stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $92.60, for a total transaction of $7,833,960.00. Following the completion of the sale, the senior vice president owned 1,782 shares of the company’s stock, valued at $165,013.20. This represents a 97.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Brad W. Beckham sold 13,635 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $95.00, for a total transaction of $1,295,325.00. Following the sale, the chief executive officer owned 12,250 shares in the company, valued at approximately $1,163,750. The trade was a 52.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 105,730 shares of company stock worth $9,815,388. Corporate insiders own 0.77% of the company’s stock.

Institutional Trading of O’Reilly Automotive

Hedge funds and other institutional investors have recently modified their holdings of the company. Eagle Bay Advisors LLC acquired a new position in shares of O’Reilly Automotive during the fourth quarter worth about $25,000. Tucker Asset Management LLC bought a new stake in O’Reilly Automotive in the 4th quarter valued at approximately $26,000. Wilkerson Advisory Group LLC acquired a new position in O’Reilly Automotive during the 4th quarter worth approximately $27,000. Whipplewood Advisors LLC boosted its position in O’Reilly Automotive by 1,552.6% during the 1st quarter. Whipplewood Advisors LLC now owns 314 shares of the specialty retailer’s stock worth $29,000 after acquiring an additional 295 shares during the last quarter. Finally, Kohmann Bosshard Financial Services LLC grew its stake in shares of O’Reilly Automotive by 54.3% during the 1st quarter. Kohmann Bosshard Financial Services LLC now owns 324 shares of the specialty retailer’s stock worth $30,000 after acquiring an additional 114 shares in the last quarter. Institutional investors and hedge funds own 85.00% of the company’s stock.

Key Headlines Impacting O’Reilly Automotive

Here are the key news stories impacting O’Reilly Automotive this week:

• Positive Sentiment: Second-quarter revenue reached a record $4.89 billion, exceeding estimates of approximately $4.86 billion and increasing 8.1% year over year. Comparable-store sales rose 6.0%, indicating continued demand for automotive aftermarket products. O’Reilly Automotive Second Quarter 2026 Results
• Positive Sentiment: Diluted EPS was $0.86, up 10% from $0.78 a year earlier and slightly above the $0.85 Zacks consensus estimate. The company also reported $2.0 billion in year-to-date operating cash flow and $2.4 billion in share repurchases, supporting per-share growth and shareholder returns. O’Reilly Automotive Q2 Earnings and Revenues Beat Estimates
• Neutral Sentiment: O’Reilly maintained fiscal 2026 EPS guidance of $3.20-$3.30 and revenue guidance of $18.9 billion-$19.2 billion. The EPS midpoint of $3.25 matches consensus, while the revenue range largely brackets the $19.1 billion analyst forecast, signaling stable expectations rather than a material upgrade. O’Reilly Q2 CY2026 Revenue Results
• Negative Sentiment: Although revenue beat estimates and earnings improved, the quarter did not produce a significant guidance increase. With shares valued at roughly 29 times earnings, investors may have been looking for a larger outlook upgrade; the in-line forecast can weigh on the stock despite healthy operating results.

O’Reilly Automotive Company Profile

O’Reilly Automotive, Inc is a leading retailer and distributor in the automotive aftermarket, supplying parts, tools, supplies and accessories for both professional service providers and do‑it‑yourself (DIY) customers. The company’s product assortment covers replacement parts, maintenance items, performance parts, collision components and shop equipment, complemented by diagnostic tools, batteries, chemicals and consumables. O’Reilly serves customers through company-operated retail stores, commercial sales programs for repair shops and maintenance fleets, and digital channels that support parts lookup, ordering and fulfillment.

The company operates a broad supply chain that includes regional distribution centers to support rapid replenishment of store inventory and commercial deliveries.