Form 4: O'Reilly Automotive SVP Acquires Stock Options

O'Reilly Automotive's SVP of Inventory Management, Larry Dean Gray, acquired 3,480 nonqualified employee stock options with an exercise price of $91.54, vesting annually from March 13, 2027.

Summary

• Larry Dean Gray, SVP of Inventory Management at O'Reilly Automotive Inc. (ORLY), reported changes in beneficial ownership.
• As of March 13, 2026, Mr. Gray directly owns 4,847 shares of common stock.
• He indirectly owns 11,283 shares of common stock through the Company's 401k plan.
• Mr. Gray was granted 3,480 nonqualified employee stock options on March 13, 2026.
• These options have an exercise price of $91.54 per share.
• The options will vest in four equal annual installments, beginning on March 13, 2027.
• The options have an expiration date of March 13, 2036.
• Following this transaction, Mr. Gray beneficially owns 3,480 derivative securities (options).

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, as an executive's acquisition of stock options typically indicates confidence in the company's future performance and aligns management incentives with shareholder interests.

Positives

• The acquisition of 3,480 nonqualified employee stock options by a Senior Vice President aligns management's interests with shareholder value.
• The options have a long expiration date of March 13, 2036, providing a long-term incentive for performance.

Risks

• The value of the stock options is dependent on the future performance of O'Reilly Automotive Inc.'s common stock. If the stock price does not rise above the exercise price of $91.54, the options may expire worthless.

Future Outlook

This filing does not contain forward-looking statements or guidance regarding the company's future performance. It solely reports an insider transaction.

Industry Context

StockSavvy.ai notes that the grant of nonqualified employee stock options is a standard component of executive compensation packages across various industries, designed to align the interests of management with long-term shareholder value by incentivizing stock price appreciation.

Comparison to Industry Standards

• This Form 4 filing primarily details an individual insider transaction and does not provide sufficient information for a direct comparison to industry-wide executive compensation benchmarks or specific company projects. The exercise price of $91.54 for the options would need to be evaluated against ORLY's stock performance and peer group compensation structures to assess its competitiveness and incentive value.

Related Party Transactions

• The grant of nonqualified employee stock options to a Senior Vice President is a form of related party transaction, specifically executive compensation.

Stakeholder Impact

• Shareholders: The grant of stock options to a key executive can align management's long-term interests with shareholder value creation, potentially leading to improved company performance.
• Employees: This filing specifically relates to executive compensation and does not directly impact the broader employee base, though it reflects the company's compensation strategy for senior leadership.

Next Steps

• The options will begin to vest in four equal annual installments starting March 13, 2027.

Key Dates

Keywords

ORLY, O'Reilly Automotive, Form 4, insider transaction, stock options, executive compensation, beneficial ownership