Jefferies Thinks O’Reilly Auto’s Stock is Going to Recover

By Ryan Adsit

In a report released today, Bret Jordan from Jefferies reiterated a Buy rating on O’Reilly Auto (NASDAQ: ORLY), with a price target of $302. The company’s shares closed yesterday at $240.18, close to its 52-week low of $234.14.

According to, Jordan is a 4-star analyst with an average return of 8.0% and a 63.6% success rate. Jordan covers the Services sector, focusing on stocks such as Pep Boys-Manny Moe & Jack, Kar Auction Services Inc, and Genuine Parts Company.

O’Reilly Auto has an analyst consensus of Strong Buy, with a price target consensus of $298.14.

Based on O’Reilly Auto’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $2.16 billion and quarterly net profit of $265 million. In comparison, last year the company earned revenue of $2.1 billion and had a net profit of $255 million.

Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock. Earlier this month, David Oreilly, the COB of ORLY sold 25,000 shares for a total of $6,264,000.

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O’Reilly Automotive, Inc. owns and operates retail outlets in the United States. It engages in the distribution and retailing of automotive aftermarket parts, tools, supplies, equipment, and accessories in the U.S., serving both professional installers and do-it-yourself customers. The company provides new and remanufactured automotive hard parts, including alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature controls, chassis 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. Its stores offer auto body paint and related materials, automotive tools and professional service provider service equipment. The company’s stores also offer enhanced services and programs comprising used oil, oil filter and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; professional paint shop mixing and related materials; and machine shops. Its stores provide do-it-yourself and professional service provider customers a selection of brand name, house brands, and private label products for domestic and imported automobiles, vans, and trucks. O’Reilly Automotive was founded by Charles F. O’Reilly and Charles H. O’Reilly, Sr. in November 1957 and is headquartered in Springfield, MO.