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1. O’Reilly Automotive, Inc. (NASDAQ:ORLY)

Number of Hedge Fund Holders: 45

O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States and Mexico. The company provides a wide range of new and remanufactured automotive hard parts, maintenance items, accessories, and professional service provider equipment. It is one of the best automotive stocks to invest in. 

On November 16, 2023, O’Reilly Automotive, Inc. (NASDAQ:ORLY) announced that its board has passed a resolution to increase the authorization amount for its share repurchase program by an extra $2 billion. This brings the total authorization under the program to $25.75 billion. The additional $2 billion authorization is valid for a three-year period, starting from November 16, 2023.

According to Insider Monkey’s third quarter database, 45 hedge funds were bullish on O’Reilly Automotive, Inc. (NASDAQ:ORLY), compared to 52 funds in the prior quarter. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with 1.05 million shares worth $959.2 million. 

Wedgewood Partners stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its fourth quarter 2023 investor letter:

“O’Reilly Automotive, Inc. (NASDAQ:ORLY) was also a bottom contributor to portfolio performance. The Company reported +11% sales growth for the quarter, driven by a +17% increase in sales to professional service providers, leading to +12% growth in operating income and +17% increase in earnings per share. The Company – true to its long capital allocation culture – has aggressively bought back shares over the past 12 months. O’Reilly Automotive’s professional sales segment continues to dramatically outpace its publicly traded competitors. The Company has a mostly singular focus on the United States, whereas several of its competitors have diverted their attention away from the large and fragmented U.S. professional market, toward non-U.S. or non-automotive markets. In the short-term, investors are focused on the mild weather that has unfolded during the late fall and early winter of 2023. Mild weather often leads to temporary slowdowns in sales growth for auto parts, but we would look to take advantage of that because O’Reilly’s long-term competitive positioning and extraordinary returns on capital are well-entrenched.”

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