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O'Reilly Automotive director Lawrence P. O'Reilly sells over $2.8M in company stock

Published 05/31/2024, 04:34 PM

In a recent transaction, Lawrence P. O'Reilly (NASDAQ:ORLY), a director at O'Reilly Automotive Inc. (NASDAQ:ORLY), sold a significant amount of company stock, totaling over $2.8 million. The sale, which took place on May 29, 2024, involved 3,000 shares of O'Reilly Automotive's common stock.

Investors tracking insider transactions will note that the shares were sold at prices ranging from $949.1921 to $949.505. The transactions resulted in a cumulative sale value of approximately $2,848,045. This sell-off represents a notable change in O'Reilly's holdings in the company, which is a leading retailer in the auto and home supply stores industry.

Following the transactions, Lawrence P. O'Reilly's remaining direct ownership in the company stands at 31,613 shares. Additionally, he has indirect ownership through various family trusts and partnerships. The total includes 26,710 shares held as a principal of a family limited partnership, 93,990 shares held as trustee for his children, 4,590 shares through his spouse, and 31,564 shares held as trustee of a Grantor Retained Annuity Trust (GRAT).

These transactions are part of the normal course of actions by company insiders and are reported to the public to maintain transparency. O'Reilly Automotive Inc., headquartered in Springfield, Missouri, has not released any official statement regarding the sales at the time of this report.

InvestingPro Insights

O'Reilly Automotive Inc. (NASDAQ:ORLY) has recently been under the investor's microscope after Lawrence P. O'Reilly's insider stock sale. To gain a deeper understanding of the company's financial health and market position, a look at the real-time data and InvestingPro Tips can provide valuable context.

The company is currently trading at a high P/E ratio of 24.17, which suggests that investors are paying a premium relative to near-term earnings growth. This is further underscored by the adjusted P/E ratio for the last twelve months as of Q1 2024, which stands at 23.91. Despite this premium valuation, analysts have revised their earnings downwards for the upcoming period, indicating potential headwinds for the company's profitability.

On the positive side, O'Reilly Automotive has shown a strong track record of profitability, as evidenced by its high return over the last decade and the last five years. Furthermore, the company's cash flows have been robust enough to sufficiently cover interest payments, which is a reassuring sign for investors concerned about the company's financial obligations.

InvestingPro Data shows that O'Reilly Automotive has a market capitalization of $56.73 billion and a revenue growth of 8.49% over the last twelve months as of Q1 2024. The gross profit margin during the same period was a healthy 51.3%, indicating the company's ability to maintain profitability despite market fluctuations.

For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available on the platform. These tips delve into aspects such as the stock's low price volatility, the company's moderate level of debt, and its lack of dividend payments to shareholders. With the use of coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.

Overall, while the insider sale by Lawrence P. O'Reilly may raise questions, the financial data and InvestingPro Tips suggest that O'Reilly Automotive remains a solid company with a strong profitability track record. However, the downward earnings revisions and high valuation metrics may be areas for potential investors to watch closely.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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