M&T Bank Corp has significantly increased its investment in O’Reilly Automotive, Inc. (NASDAQ: ORLY), acquiring an additional 135,903 shares during the second quarter of 2023. This move boosted the bank’s total holdings to 146,014 shares, valued at approximately $13,160,000 according to its recent filing with the Securities and Exchange Commission (SEC). The increase marks a staggering 1,344.1% rise in M&T Bank Corp’s stake in the specialty automotive retailer.
Other institutional investors have also adjusted their positions in O’Reilly Automotive. Scotia Capital Inc. raised its stake by 72.9% during the first quarter, now owning 937 shares worth around $1,342,000 after acquiring an additional 395 shares. ING Groep NV reported an increase of 203.8%, bringing its total holdings to 10,003 shares valued at $14,330,000. Thoroughbred Financial Services LLC and Vanguard Group Inc. also expanded their investments, with Vanguard now holding over 5.2 million shares, valued at approximately $7.5 billion.
The trend among institutional investors indicates a strong confidence in O’Reilly Automotive, which is now 85% owned by such entities. Several analysts have shared their insights on the stock, with TD Cowen recently increasing its price target from $112.00 to $125.00 and issuing a “buy” rating. Wells Fargo & Company set a price target of $115.00, while Argus initiated coverage with a target of $120.00. The overwhelming majority of analysts—19 out of 21—have given the stock a “buy” rating, leading to an average target price of $111.89.
Recent Performance and Financial Highlights
O’Reilly Automotive’s stock opened at $99.84 on a recent trading day, reflecting a 1.4% decrease. The company boasts a market capitalization of $84.28 billion and a price-to-earnings ratio of 34.59. Over the past year, the stock has fluctuated between a low of $78.30 and a high of $108.71.
The latest earnings report, released on October 22, 2023, revealed that O’Reilly Automotive achieved earnings per share (EPS) of $0.85, exceeding the consensus estimate of $0.83 by $0.02. The firm reported revenue of $4.71 billion for the quarter, surpassing analyst expectations of $4.69 billion. This represents a 7.8% increase in revenue compared to the same quarter last year.
O’Reilly Automotive has set its fiscal year 2025 guidance, expecting an EPS range between $2.900 and $3.000. Analysts forecast an average EPS of 43.94 for the current year, suggesting continued growth for the specialty retailer.
Insider Transactions and Company Overview
In recent insider activities, Senior Vice President Philip M. Hopper sold 3,500 shares at an average price of $101.25, totaling $354,375. This transaction reduced his ownership by 42.21%. Another senior vice president, Christopher Andrew Mancini, sold 2,355 shares at an average price of $101.31, resulting in a total of $238,585.05 from the sale.
O’Reilly Automotive, Inc. operates as a major retailer and supplier of automotive aftermarket parts, tools, and accessories in the United States, Puerto Rico, and Mexico. The company provides a wide range of products, including hard parts, maintenance items, and various automotive supplies.
As institutional interest continues to grow, O’Reilly Automotive appears well-positioned for future performance, supported by strong earnings and positive analyst sentiment.
