SPRINGFIELD, Mo. - O’Reilly Automotive, Inc. (NASDAQ:ORLY), a prominent player in the automotive aftermarket industry with a market capitalization of $73.75 billion, announced on Thursday that its Board of Directors has approved a 15-for-1 stock split in the form of a special stock dividend, pending shareholder consent to increase the authorized share count. This strategic move is aimed at making stock ownership more attainable for its employees through the company’s stock purchase program. According to InvestingPro analysis, the stock currently appears overvalued compared to its Fair Value, trading at a P/E ratio of 31.45.
The proposed split requires an amendment to O’Reilly’s Articles of Incorporation to raise the authorized shares of common stock to accommodate the split. The company is set to seek shareholder approval at its annual meeting scheduled for May 15, 2025.
Brad Beckham, CEO of O’Reilly, stated that the decision for the stock split reflects the company’s robust financial performance since its initial public offering in April 1993. The company’s strength is evident in its recent performance, with revenue growth of 5.67% and a strong gross profit margin of 51.2%. InvestingPro data shows the company maintains a "GOOD" overall financial health score, supported by strong profitability metrics. Beckham highlighted the consistent growth in key financial metrics each year since becoming a public entity. He emphasized that the stock split is intended to benefit the company’s employees, enabling them to more easily acquire shares through payroll deductions at a discounted rate, thus sharing in the company’s continued success.
If the amendment is ratified and the Board proceeds with the stock split, shareholders on record as of June 2, 2025, will receive fourteen additional shares for each share they hold. The additional shares are scheduled for distribution after the market closes on June 9, 2025, with the shares expected to begin trading on a split-adjusted basis from the market open on June 10, 2025.
O’Reilly Automotive, founded in 1957, operates a vast network of stores across the United States, Puerto Rico, Mexico, and Canada, offering a wide range of automotive parts, tools, supplies, equipment, and accessories. With annual revenue exceeding $16.7 billion and a track record of consistent profitability, the company has established itself as a market leader. For deeper insights into O’Reilly’s financial health and growth prospects, investors can access comprehensive analysis and 12+ additional ProTips through InvestingPro’s detailed research reports.
The company’s announcement also contained forward-looking statements, cautioning that actual results could differ materially from those projected due to various risks and uncertainties, including market conditions and regulatory factors.
This news is based on a press release statement from O’Reilly Automotive, Inc.
In other recent news, O’Reilly Automotive has been the focus of several analyst updates following its fourth-quarter results for 2024. The company reported higher-than-expected same-store sales, although profit margins did not meet forecasts. BMO Capital Markets increased its price target for O’Reilly to $1,450, maintaining an Outperform rating, while TD Cowen raised their target to $1,500, citing market share growth and favorable conditions. DA Davidson also lifted their target to $1,525, highlighting the company’s strong performance in comparable store sales. Truist Securities set a new target of $1,468, maintaining a Buy rating and noting robust fourth-quarter results with a 4.4% growth in comparable store sales.
Analysts have pointed out that O’Reilly’s conservative guidance for 2025 might be a strategic move given current economic uncertainties. Despite this, firms like BMO and Truist express confidence in O’Reilly’s long-term growth potential, driven by industry tailwinds and strategic initiatives. TD Cowen mentioned that while the company might face lower free cash flow in 2025, its market position remains strong. Analysts from DA Davidson suggested that potential tariff changes and inflation could benefit O’Reilly, as the company is well-positioned to pass on price increases. Overall, these developments reflect a cautiously optimistic outlook for O’Reilly’s future performance.
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