On October 31, 2023, Thomas Hendrickson, a director at O'Reilly Automotive Inc (ORLY, Financial), sold 200 shares of the company's stock. This move is part of a broader trend of insider selling at the company, with 46 insider sells over the past year.
Thomas Hendrickson is a key figure at O'Reilly Automotive Inc, a leading company in the automotive aftermarket parts industry. The company provides its customers with high-quality vehicle parts, tools, and professional service. With a vast network of stores and distribution centers, O'Reilly Automotive Inc is a trusted name in the automotive parts industry.
Over the past year, the insider has sold a total of 200 shares and has not made any purchases. This trend of selling without buying raises questions about the insider's confidence in the company's future performance.
The above image shows the trend of insider transactions at O'Reilly Automotive Inc. As can be seen, there have been no insider buys over the past year, while there have been 46 insider sells. This could be a signal that insiders believe the stock is overvalued, or it could simply be a result of insiders cashing out their holdings for personal reasons.
On the day of the insider's recent sell, shares of O'Reilly Automotive Inc were trading for $930.45, giving the company a market cap of $56.38 billion. The stock's price-earnings ratio is 25.16, which is higher than both the industry median of 16.19 and the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its earnings.
The above image shows the GuruFocus Value of O'Reilly Automotive Inc. With a price of $930.45 and a GuruFocus Value of $918.49, the stock has a price-to-GF-Value ratio of 1.01. This indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance.
In conclusion, the recent sell by Director Thomas Hendrickson, along with the broader trend of insider selling at O'Reilly Automotive Inc, could be a signal for investors to exercise caution. While the stock appears to be fairly valued based on its GF Value, its high price-earnings ratio compared to the industry median suggests that it may be overvalued. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
