Weik Capital Management has significantly increased its holdings in O’Reilly Automotive, Inc. (NASDAQ: ORLY), boosting its position by an impressive 1,395.3% during the second quarter of 2023. According to the firm’s latest Form 13F filing with the Securities and Exchange Commission, Weik now owns 54,205 shares of the automotive retailer, having acquired an additional 50,580 shares during this period. O’Reilly Automotive now constitutes approximately 1.9% of Weik Capital Management’s total portfolio, making it the firm’s 12th largest holding.
By the end of the most recent reporting period, Weik Capital Management’s investment in O’Reilly Automotive was valued at about $4,885,000. This move comes as several other institutional investors, including some of the largest hedge funds, have also increased their stakes in the company, indicating a growing confidence in O’Reilly’s market position.
Institutional Engagement
Vanguard Group Inc. has notably raised its stake in O’Reilly Automotive by 1,404.9% in the second quarter, now holding 78,834,967 shares valued at approximately $7.1 billion after a purchase of 73,596,571 shares. Similarly, Geode Capital Management LLC increased its holdings by 1,443.1%, bringing its total to 23,679,108 shares worth around $2.13 billion.
Other significant increases include Bank of New York Mellon Corp., which grew its position by 1,317.8% to 17,651,104 shares valued at $1.59 billion, and Jennison Associates LLC, which raised its stake by 1,820.9% to 14,116,976 shares worth approximately $1.27 billion. Massachusetts Financial Services Co. MA also expanded its investment by 1,467.8%, owning now 9,152,716 shares valued at about $824.93 million.
As of now, institutional investors and hedge funds hold approximately 85% of O’Reilly Automotive’s stock, reflecting strong institutional interest in the company.
Market Performance
O’Reilly Automotive’s stock has shown resilience, opening at $100.43 recently, with a 50-day moving average of $100.62 and a 200-day moving average of $97.40. The company’s stock has fluctuated significantly over the past year, reaching a low of $78.30 and a high of $108.71. With a market capitalization of approximately $84.77 billion, O’Reilly Automotive has a price-to-earnings ratio of 34.79 and a PEG ratio of 2.48, indicating strong growth potential within the automotive retail sector.
Recent Insider Activity
In related developments, John Raymond Murphy, a director at O’Reilly Automotive, sold 3,125 shares on November 4, 2023, at an average price of $92.60, totaling $289,375. Following this sale, Murphy retains 8,125 shares valued at approximately $752,375, reflecting a 27.78% decrease in his ownership.
Analyst Ratings
Recent analyses from various equity research firms have highlighted a positive outlook for O’Reilly Automotive. Wolfe Research initiated coverage with an “outperform” rating and a price target of $121.00 on September 18, 2023. Mizuho also set a target price of $112.00 in a report on October 20, 2023. Additionally, Raymond James Financial upgraded its rating from “market perform” to “outperform” with a target of $105.00 on November 5, 2023. Royal Bank of Canada provided a target price of $110.00, and Morgan Stanley raised its target from $105.00 to $115.00, indicating strong institutional confidence in the company’s performance.
Overall, O’Reilly Automotive has received a consensus rating of “Moderate Buy” from nineteen research analysts, with an average price target of $111.89, reflecting optimism about its future in the automotive retail market.
Company Overview
O’Reilly Automotive, Inc. operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories across the United States, Puerto Rico, and Mexico. The company provides a range of products, including new and remanufactured automotive hard parts, maintenance items, and various accessories.
As interest in O’Reilly Automotive continues to grow among institutional investors, the company’s trajectory in the automotive sector remains closely monitored by market analysts and investors alike.
