O'Reilly Auto Shares Plummet After Reports Of Lower Sales
Shares of auto parts retailer O'Reilly Automotive Inc. (NASDAQ:ORLY) sank 22 percent on Wednesday after the company warned investors its total sales may come in weak in June, further fanning fears that the industry is headed for a slowdown.
Reuters reports the fall was heavy enough to bring down shares of O'Reilly's rivals, including AutoZone and Advance Auto Parts.
"The entire auto parts retail sector appears to be weakening," said Raymond James analyst Dan Wewer. "O'Reilly's sales shortfall cannot be attributed to market share loss."
Wewer added he had cut his price target on the company to $100 from $115.
According to the news source, the company's shares fell to $75.61, the lowest price they have hit in the last five months.
If the company's officials' actions are any indication, it appears the selloff could continue for sometime, with company insiders leading the way. In the last three months, officials sold sold $19.14 million in shares, which ranged in price from $92.01 to $106.71 each, much higher than the most recent share prices, according to recent insider trading.
Read Full Insider Report For: ORLY |