YOUR BUSINESS AUTHORITY
Springfield, MO
YOUR BUSINESS AUTHORITY
Springfield, MO
The O'Reilly Automotive Inc. (Nasdaq: ORLY) Board of Directors has approved a 15-for-1 stock split that company officials say will allow its employees to more easily purchase shares.
Officials with the Springfield-based auto parts retailer said in a March 13 news release that the stock split, which would be implemented through a one-time special stock dividend, is subject to shareholder approval. Shareholders are scheduled to vote at the company's May 15 annual meeting on an amendment to O’Reilly Automotive's articles of incorporation to increase the number of authorized shares of common stock.
If the stock split is approved, shareholders of record as of June 2 are set to receive 14 additional shares of common stock for each share held. ORLY stock would trade on a post-split basis when the market opens June 10, officials say. A stock split divides existing shares into multiple shares, reducing the price per share without affecting the company’s total market value, according to Investopedia.com.
"We believe our team O’Reilly culture is the most critical factor in our company’s historic and future success. We also believe we are at our strongest when our team members participate in the success of our company," said Brad Beckham, O'Reilly Automotive CEO, in the release. "This split will make our common stock more accessible to our team members, enabling them to acquire whole shares, rather than fractions, more readily through our stock purchase program, which allows them to purchase stock conveniently through payroll deductions at a 15% discount. We feel this is the right time to split the stock and further include our team members in the next chapter of growth for team O’Reilly.”
During 2024, O'Reilly Automotive recorded net income of $2.39 billion, an increase from $2.35 billion in 2023. Revenue during the year climbed to $16.7 billion from $15.8 billion in 2023.
"The current per share price level of our common stock reflects the continued strong financial performance of O’Reilly since our initial public offering in April 1993, highlighted by annual growth in comparable store sales, total revenues and operating income each year we have been a public company," Beckham said in the release. "In the 20 years since we last split our stock in 2005, the company has consistently delivered strong performance, resulting in a total increase in our share price over 4,330%, or approximately 21% on an annualized basis.”
O'Reilly Automotive spokesperson Sonya Kullmann Cox said via email that the company previously enacted two-for-one stock splits in June 2005, December 1999 and September 1997.
ORLY shares were trading at $1,348.04 as of 9:33 a.m., compared with a 52-week range of $947.49 to $1,389.05 per share.
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I have never let my husband forget that he refused to allow me to buy O'Reilly stock since 1993. His excuse for not buying the stock was :No one buys auto parts. I argued that yes they do! He has had to agree that he was wrong about no one buying auto parts. This is more clear to him since he retired. He now will take 1 of our 5 vehicles there when it needs new wipers, or dash light or tail light, any of the things that wear out over and over again.