Oracle (NYSE:ORCL) Shares Gap Up – Should You Buy?

Oracle Corporation (NYSE:ORCL) gapped up prior to trading on Monday . The stock had previously closed at $210.24, but opened at $226.50. Oracle shares last traded at $222.81, with a volume of 6,661,796 shares trading hands.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on ORCL shares. UBS Group set a $250.00 price objective on Oracle and gave the company a “buy” rating in a report on Wednesday, June 25th. JPMorgan Chase & Co. boosted their price target on Oracle from $135.00 to $185.00 and gave the company a “neutral” rating in a research note on Thursday, June 12th. CIBC reaffirmed a “buy” rating on shares of Oracle in a research report on Monday, June 9th. Morgan Stanley reiterated an “overweight” rating on shares of Oracle in a research note on Wednesday, June 18th. Finally, Loop Capital set a $135.00 target price on shares of Oracle in a research report on Tuesday, June 10th. Ten investment analysts have rated the stock with a hold rating, twenty-two have given a buy rating and two have assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $200.26.

Oracle Stock Up 0.2%

The company’s 50-day moving average price is $172.18 and its 200 day moving average price is $162.87. The company has a debt-to-equity ratio of 4.07, a quick ratio of 0.75 and a current ratio of 0.75. The stock has a market cap of $615.47 billion, a PE ratio of 50.49, a price-to-earnings-growth ratio of 3.28 and a beta of 1.39.

Oracle (NYSE:ORCL) last announced its quarterly earnings data on Wednesday, June 11th. The enterprise software provider reported $1.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.64 by $0.06. Oracle had a return on equity of 87.34% and a net margin of 21.68%. The company had revenue of $15.90 billion during the quarter, compared to the consensus estimate of $15.58 billion. During the same period in the previous year, the company posted $1.63 EPS. The firm’s revenue was up 11.3% on a year-over-year basis. As a group, analysts forecast that Oracle Corporation will post 5 EPS for the current fiscal year.

Oracle Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 24th. Shareholders of record on Thursday, July 10th will be issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 0.91%. The ex-dividend date is Thursday, July 10th. Oracle’s dividend payout ratio (DPR) is currently 46.08%.

Insider Transactions at Oracle

In other Oracle news, Director Naomi O. Seligman sold 2,866 shares of the business’s stock in a transaction that occurred on Monday, May 5th. The stock was sold at an average price of $149.53, for a total transaction of $428,552.98. Following the sale, the director directly owned 31,764 shares of the company’s stock, valued at $4,749,670.92. The trade was a 8.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Clayton M. Magouyrk sold 15,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 17th. The shares were sold at an average price of $214.10, for a total value of $3,211,500.00. Following the transaction, the insider directly owned 60,722 shares in the company, valued at approximately $13,000,580.20. This represents a 19.81% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 440,366 shares of company stock worth $83,103,603. 42.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Oracle

Several hedge funds and other institutional investors have recently modified their holdings of the business. Redmont Wealth Advisors LLC purchased a new stake in Oracle during the first quarter worth $27,000. Inlight Wealth Management LLC purchased a new stake in shares of Oracle during the 1st quarter worth $28,000. Iron Horse Wealth Management LLC lifted its stake in shares of Oracle by 284.9% during the 1st quarter. Iron Horse Wealth Management LLC now owns 204 shares of the enterprise software provider’s stock worth $29,000 after purchasing an additional 151 shares during the last quarter. Sunbeam Capital Management LLC bought a new stake in Oracle during the fourth quarter valued at about $30,000. Finally, Hurley Capital LLC purchased a new position in Oracle in the fourth quarter valued at about $33,000. 42.44% of the stock is currently owned by hedge funds and other institutional investors.

Oracle Company Profile

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing.