Weik Capital Management has dramatically increased its investment in O’Reilly Automotive, Inc. (NASDAQ: ORLY) by a staggering 1,395.3% during the second quarter of 2023, according to the firm’s latest Form 13F filing with the Securities and Exchange Commission. The investment firm now holds 54,205 shares after acquiring an additional 50,580 shares in the quarter, which represents approximately 1.9% of its total holdings, making O’Reilly Automotive its 12th largest investment. As of the end of the reporting period, these shares were valued at around $4,885,000.
The surge in O’Reilly’s stock is not an isolated incident. Other institutional investors have also ramped up their stakes in the specialty retailer. Notably, Vanguard Group Inc. raised its holdings by 1,404.9%, acquiring 73,596,571 shares during the last quarter. Vanguard now owns a total of 78,834,967 shares, worth approximately $7.1 billion. Similarly, Geode Capital Management LLC increased its stake by 1,443.1%, bringing its total to 23,679,108 shares, valued at about $2.13 billion.
The momentum continues with Bank of New York Mellon Corp., which boosted its position by 1,317.8%, owning 17,651,104 shares worth approximately $1.59 billion. Jennison Associates LLC and Massachusetts Financial Services Co. MA also significantly increased their stakes, with increases of 1,820.9% and 1,467.8% respectively, reflecting a growing confidence in O’Reilly’s market potential.
Market Performance and Analyst Ratings
On the trading front, O’Reilly Automotive experienced a 1.4% increase in stock price, opening at $100.43 on Monday. The stock has shown resilience, with a 50-day moving average of $100.62 and a 200-day moving average of $97.40. Over the past year, the stock’s performance has ranged from a low of $78.30 to a high of $108.71. The current market capitalization stands at $84.77 billion, with a price-to-earnings ratio of 34.79 and a PEG ratio of 2.48.
Insider trading activity also reflects significant movements. On November 4, John Raymond Murphy, a director at O’Reilly Automotive, sold 3,125 shares for a total of $289,375. Following this transaction, he retained 8,125 shares, valued at approximately $752,375. Insiders now hold about 1.01% of the company’s stock.
Several analysts have weighed in on O’Reilly’s stock, affirming their positive outlook. Wolfe Research initiated coverage on September 18, 2023, with an “outperform” rating and a price target of $121.00. Mizuho set a target of $112.00, while Raymond James Financial upgraded their rating from “market perform” to “outperform” with a target of $105.00. Royal Bank of Canada also rated the stock as “outperform,” setting a price target of $110.00. Notably, Morgan Stanley increased its price target from $105.00 to $115.00, maintaining an “overweight” rating.
Based on evaluations from MarketBeat.com, O’Reilly Automotive currently holds a consensus rating of “Moderate Buy,” with an average price target of $111.89.
Company Overview
O’Reilly Automotive, Inc., along with its subsidiaries, operates as a prominent retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories across the United States, Puerto Rico, and Mexico. The company offers a range of products, including new and remanufactured automotive hard parts and maintenance items such as alternators, batteries, brake components, and various accessories.
As institutional interest in O’Reilly Automotive rises, the company’s strong market performance and positive analyst sentiment may indicate a favorable outlook for investors in the coming quarters.
