O’Reilly Automotive (NASDAQ:ORLY) Earns “Buy” Rating from DA Davidson

O’Reilly Automotive (NASDAQ:ORLY)‘s stock had its “buy” rating restated by equities researchers at DA Davidson in a research report issued to clients and investors on Tuesday,Benzinga reports. They presently have a $110.00 price target on the specialty retailer’s stock. DA Davidson’s target price would suggest a potential upside of 13.71% from the company’s previous close.

Several other equities research analysts have also commented on ORLY. Morgan Stanley set a $110.00 price objective on O’Reilly Automotive and gave the stock an “overweight” rating in a research note on Thursday, January 15th. UBS Group reaffirmed a “buy” rating and set a $120.00 price objective (up from $115.00) on shares of O’Reilly Automotive in a report on Wednesday, October 15th. Mizuho set a $112.00 price objective on shares of O’Reilly Automotive in a report on Monday, October 20th. Wolfe Research upgraded O’Reilly Automotive from a “hold” rating to a “strong-buy” rating in a research report on Monday, December 22nd. Finally, Wells Fargo & Company set a $115.00 price target on shares of O’Reilly Automotive and gave the company an “overweight” rating in a report on Wednesday, October 15th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $111.60.

O’Reilly Automotive Stock Down 0.4%

Shares of NASDAQ ORLY opened at $96.74 on Tuesday. The firm’s 50-day moving average price is $95.29 and its 200-day moving average price is $99.18. O’Reilly Automotive has a 52-week low of $85.55 and a 52-week high of $108.71. The company has a market cap of $81.66 billion, a PE ratio of 33.51, a PEG ratio of 2.06 and a beta of 0.62.

O’Reilly Automotive (NASDAQ:ORLY) last issued its quarterly earnings data on Wednesday, February 4th. The specialty retailer reported $0.71 earnings per share for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.01). O’Reilly Automotive had a net margin of 14.23% and a negative return on equity of 206.86%. The company had revenue of $4.41 billion for the quarter, compared to the consensus estimate of $4.39 billion. During the same quarter last year, the company earned $9.50 EPS. The firm’s revenue for the quarter was up 7.8% on a year-over-year basis. O’Reilly Automotive has set its FY 2026 guidance at 3.100-3.200 EPS. As a group, equities research analysts anticipate that O’Reilly Automotive will post 43.94 EPS for the current fiscal year.

Insider Activity

In related news, SVP Philip M. Hopper sold 3,500 shares of O’Reilly Automotive stock in a transaction dated Wednesday, November 26th. The stock was sold at an average price of $101.25, for a total value of $354,375.00. Following the sale, the senior vice president directly owned 4,792 shares in the company, valued at approximately $485,190. The trade was a 42.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP Christopher Andrew Mancini sold 2,355 shares of O’Reilly Automotive stock in a transaction that occurred on Wednesday, November 26th. The stock was sold at an average price of $101.31, for a total value of $238,585.05. Following the completion of the sale, the senior vice president directly owned 28 shares in the company, valued at $2,836.68. This represents a 98.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.01% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On O’Reilly Automotive

Several institutional investors and hedge funds have recently added to or reduced their stakes in ORLY. Eagle Bay Advisors LLC purchased a new position in O’Reilly Automotive in the 4th quarter worth approximately $25,000. True Wealth Design LLC boosted its stake in O’Reilly Automotive by 127.7% during the third quarter. True Wealth Design LLC now owns 271 shares of the specialty retailer’s stock worth $29,000 after buying an additional 152 shares during the last quarter. IAG Wealth Partners LLC purchased a new stake in O’Reilly Automotive in the 3rd quarter valued at $31,000. Canton Hathaway LLC increased its stake in shares of O’Reilly Automotive by 1,400.0% in the 2nd quarter. Canton Hathaway LLC now owns 300 shares of the specialty retailer’s stock worth $27,000 after acquiring an additional 280 shares during the last quarter. Finally, Westfuller Advisors LLC purchased a new position in shares of O’Reilly Automotive during the 3rd quarter worth $32,000. Institutional investors and hedge funds own 85.00% of the company’s stock.

Key O’Reilly Automotive News

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

• Positive Sentiment: Strong top‑line and comps: Q4 sales rose to $4.41B (+8% YoY) and company reported 5.6% comparable‑store sales growth (4.7% for the full year), supporting ongoing market share gains and record annual revenue. O’Reilly Reports 5.6% Q4 Comparable Store Sales Growth
• Positive Sentiment: Record earnings and buybacks: full‑year EPS rose 10% to $2.97, net income hit a record $2.54B, and management repurchased $500M in Q4 (and ~$1.4M after quarter), leaving ~$2.26B remaining on the buyback authorization — supportive of shareholder returns. O’Reilly Reports 5.6% Q4 Comparable Store Sales Growth
• Neutral Sentiment: Analyst support remains: several firms maintain positive ratings and targets (e.g., DA Davidson reaffirmed a Buy with a $110 target; Evercore ISI has Outperform), which provides upside thesis momentum if guidance execution reassures investors. DA Davidson Reaffirms Buy Evercore ISI Buy
• Negative Sentiment: Guidance disappointed: FY2026 EPS guidance of $3.10–$3.20 came in below the consensus (~$3.31) and revenue guidance of $18.7B–$19.0B sits at the low end of expectations — the guidance gap is the main driver pressuring the stock. Shares Fall as 2026 Guidance Disappoints
• Negative Sentiment: Small EPS miss and margin pressure: Q4 EPS was $0.71 vs. the $0.72 consensus (a modest miss) and management called out higher SG&A (team health care, casualty claim costs), which could compress margins if the costs persist. Q4 Earnings Lag Estimates
• Negative Sentiment: Rising leverage and insider selling: long‑term debt increased year‑over‑year (~$6.02B) and filings cited recent insider sales, which some investors view as a governance/valuation headwind. Record Results and Capital Activity

About O’Reilly Automotive

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.