Oppenheimer Remains a Hold on O’Reilly Auto (ORLY)

By Jason Carr

Oppenheimer analyst Brian Nagel maintained a Hold rating on O’Reilly Auto (ORLYResearch Report) today and set a price target of $360. The company’s shares closed yesterday at $396.71, close to its 52-week high of $414.63.

Nagel noted:

“Yesterday after the market close, Perform-rated O’Reilly (ORLY) reported Q1:19 (Mar.) results and updated guidance for FY19 (Dec). Shares are trading lower pre- market upon indications of a somewhat slower start to the year, with comp trends in the period advancing 3.2%, or nearly a full percentage point below a +4.0% Street figure. Management made clear that despite unusually wet conditions and tax refund disruptions in the seasonally light Q1, underlying dynamics in sector remain solidly in place. We recently stepped back from our longstanding positive call on ORLY as part of a more pro-cyclical, relative call within our group (Feb. 8th at $365.46). To be clear, we do not foresee any fundamental “cracks” for ORLY, but advise clients to allocate funds toward more discretionary names.”

According to TipRanks.com, Nagel is a 5-star analyst with an average return of 9.9% and a 67.3% success rate. Nagel covers the Services sector, focusing on stocks such as Weight Watchers International, Capri Holdings Limited, and Dick’s Sporting Goods.

Currently, the analyst consensus on O’Reilly Auto is a Moderate Buy with an average price target of $399.82, implying a 0.8% upside from current levels. In a report issued on April 15, Morgan Stanley also maintained a Hold rating on the stock with a $400 price target.

See today’s analyst top recommended stocks >>

O’Reilly Auto’s market cap is currently $31.36B and has a P/E ratio of 24.63. The company has a Price to Book ratio of 88.66.

Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. Most recently, in February 2019, Larry Lee Ellis, the SVP OF DISTRIBUTION of ORLY sold 800 shares for a total of $300,976.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.