In the last year, many O'Reilly Automotive, Inc. (NASDAQ:ORLY) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At O'Reilly Automotive

In the last twelve months, the biggest single sale by an insider was when the Executive Vice Chairman, David O'Reilly, sold US$26m worth of shares at a price of US$1,126 per share. That means that even when the share price was below the current price of US$1,378, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 9.4% of David O'Reilly's stake.

O'Reilly Automotive insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for O'Reilly Automotive NasdaqGS:ORLY Insider Trading Volume May 8th 2025

If you are like me, then you will not want to miss this freelist of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At O'Reilly Automotive Have Sold Stock Recently

The last quarter saw substantial insider selling of O'Reilly Automotive shares. In total, insiders sold US$6.5m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of O'Reilly Automotive

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that O'Reilly Automotive insiders own 0.8% of the company, worth about US$643m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

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So What Does This Data Suggest About O'Reilly Automotive Insiders?

Insiders haven't bought O'Reilly Automotive stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since O'Reilly Automotive is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that O'Reilly Automotive has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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