O'Reilly Auto Exec Cashes In on $3.4 Million Stock Sale, Stock Price Hits All-Time High

Mark Joseph, Senior Vice President of International at O'Reilly Auto, sold 34,555 shares of the company's stock on July 31, 2025, valued at $3.4 million. The company reported strong Q2 2025 financial results, with a 4.1% increase in comparable store sales and an 11% rise in diluted earnings per share. Analysts have raised price targets for O'Reilly, driven by robust sales growth and strategic initiatives. Spark, TipRanks' AI Analyst, rates ORLY as an Outperform, citing strong financial performance and positive sentiment from the earnings call.

O'Reilly Automotive Inc. (ORLY) reported robust financial results for the second quarter of 2025, with a 4.1% increase in comparable store sales and an 11% rise in diluted earnings per share (EPS). The company's strong performance was driven by growth in both professional and DIY segments, with gross margin increasing to 51.4% and SG&A per store growth at 4.5%. O'Reilly also announced the opening of 105 net new stores in the first half of 2025 and the acquisition of a new distribution center in Hazlet, Texas, to support future growth in the South-Central US region.

Analysts have raised price targets for O'Reilly, driven by robust sales growth and strategic initiatives. Spark, TipRanks' AI Analyst, rates ORLY as an Outperform, citing strong financial performance and positive sentiment from the earnings call. Mark Joseph, Senior Vice President of International at O'Reilly, sold 34,555 shares of the company's stock on July 31, 2025, valued at $3.4 million.

However, the DIY segment experienced a small decline in ticket count, indicating potential challenges in consumer demand. O'Reilly is cautious about the potential adverse impact of rising prices on consumers, particularly lower-income DIY customers. The company also faced higher-than-expected SG&A growth of 4.5% in the second quarter, driven by inflationary pressures and increased spending to support sales performance.

O'Reilly's effective tax rate was 22.4% for the second quarter, while free cash flow reached $904 million for the first six months of 2025. Inventory per store increased to $833,000, up 9% from last year, with an AP to inventory ratio of 127% at the end of the second quarter. The company's adjusted debt-to-EBITDAR ratio stood at 2.06 times, and it repurchased 6.8 million shares at an average price of $90.71.

In the earnings call, O'Reilly's leadership acknowledged the challenges posed by tariff-related cost pressures and the potential impact of rising prices on consumers. They expressed confidence in their ability to navigate these challenges and maintain long-term operating profit rates.

References:
[1] https://finance.yahoo.com/news/oreilly-automotive-inc-orly-q2-072000562.html
[2] https://seekingalpha.com/article/4807164-franklin-us-government-ladder-1-5-year-sma-q2-2025-commentary