O’Reilly Automotive Inc. (ORLY) stock slips, “Buy” rating reaffirmed by Jefferies Group Analysts

O’Reilly Automotive Inc. (NASDAQ: ORLY) shares fell on in early trade Wednesday with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.

Jefferies Group analysts reiterated its Buy rating on O’Reilly Automotive Inc. (NASDAQ: ORLY) in a note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Buy on the shares. A number of other analysts have issued reports on the company recently, and the company has secured a consensus one-year price target of $313.28, above the opening price of $276.01, a difference of 11.41 percent. O’Reilly Automotive Inc. stock has a 52-week high of $292.84. Share prices sometimes get a boost to the upside when analysts reiterate coverage.

U.S. stocks mostly climbed on Wednesday as crude-oil prices traded above $51 a barrel.

The Dow Jones Industrial Average DJIA, +0.18% gained 33 points, or 0.2% at 18,195, the S&P 500 index SPX, +0.07% advanced 2 points, or less than 0.1%, at 2,141, while the Nasdaq Composite Index COMP, -0.08% traded little-changed at 5,240.

U.S. stocks closed higher Tuesday as investors welcomed stronger-than-expected quarterly results from a host of companies

The S&P 500 index SPX, +0.62% finished up 13.10 points, or 0.6%, at 2,139.60, with all 11 main sectors trading higher.

The Dow Jones Industrial Average DJIA, +0.42% rose 75.54 points, or 0.4%, to close at 18,161.94.

Meanwhile, the Nasdaq Composite Index COMP, +0.85% added 44.01 points, or 0.9%, to close at 5,243.84.

O’Reilly Automotive Inc. (NASDAQ: ORLY) shares last traded at $274.47, which is a drop of $3.61 per share or -1.30% from the previous closing price. Opening at $276.01, they varied from $273.55 and $277.95 throughout the day.

O’Reilly Automotive Inc. (NASDAQ: ORLY) currently has a market cap of 26.05B.

O’Reilly Automotive Inc.Trading Volume

204,676 shares crossed the trading desk yesterday, below the norm, out of a total float 92,858,000. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to determine heavy volume aggregation or distribution by institutional investors.

However, just a day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors retain teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.

O’Reilly Automotive Inc. Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

Traders can make more effective judgments on trades when they follow the activity of professional investors.

With that in mind, O’Reilly Automotive Inc. (NASDAQ: ORLY) now has a 50-day MA of $278.77 and 200-day MA of $273.48. It has traded in a 52-week range between $225.12 – 292.840 and today’s last price is 6.28%% lower than the 52 week high of $292.84.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more for the past 3 years.

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