Oracle (NYSE:ORCL) Trading Down 5.8% – Here’s Why

Shares of Oracle Corporation (NYSE:ORCL) were down 5.8% during trading on Tuesday . The stock traded as low as $164.61 and last traded at $165.00. Approximately 32,120,213 shares changed hands during trading, an increase of 18% from the average session volume of 27,226,527 shares. The stock had previously closed at $175.07.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Several bullish pieces argue the sell-off may be overdone, pointing to Oracle’s expanding AI infrastructure backlog and long-term revenue visibility as reasons the stock could rebound. Oracle’s Sell-Off Looks More Like a Mispricing Than a Warning
• Positive Sentiment: Oracle’s AI and cloud buildout continues to attract bullish commentary, with analysts and authors highlighting that the company’s massive backlog could support stronger revenue and earnings over the next few years. Tech Compression Dragged Oracle Stock to $175, but Its Unbelievable $638 Billion AI Backlog Makes It an Automatic Buy
• Neutral Sentiment: Oracle Health also got a small positive mention as Baystate Health expanded its collaboration, which supports the company’s healthcare cloud strategy but is not the main driver of today’s move. Baystate Health and Oracle Health Expand Strategic Collaboration to Create a Connected and Patient-Centered Care Experience
• Negative Sentiment: The biggest bearish catalyst is the 21,000-job reduction tied to AI, which suggests major restructuring costs and reinforces concerns that Oracle’s AI push is still pressuring margins and cash generation. Oracle workforce shrinks by about 13%
• Negative Sentiment: Some coverage also says the market is still worried about Oracle’s cash burn and heavy data-center spending, which has weighed on sentiment despite the company’s strong AI-related growth narrative. Oracle workforce shrinks by about 21,000 amid AI adoption

Wall Street Analyst Weigh In

ORCL has been the topic of a number of recent analyst reports. Scotiabank reiterated an “overweight” rating on shares of Oracle in a report on Thursday, June 11th. Monness Crespi & Hardt restated a “hold” rating on shares of Oracle in a report on Wednesday, March 11th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $190.00 price objective on shares of Oracle in a research report on Thursday, June 11th. UBS Group lifted their target price on Oracle from $250.00 to $285.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Finally, TD Cowen boosted their price target on Oracle from $250.00 to $300.00 and gave the stock a “buy” rating in a research note on Monday, June 8th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Oracle currently has a consensus rating of “Moderate Buy” and an average price target of $268.27.

Oracle Trading Down 5.8%

The company has a quick ratio of 1.35, a current ratio of 1.12 and a debt-to-equity ratio of 2.84. The firm has a market capitalization of $474.55 billion, a PE ratio of 28.30, a PEG ratio of 1.16 and a beta of 1.65. The stock’s fifty day simple moving average is $189.59 and its 200 day simple moving average is $177.04.

Oracle (NYSE:ORCL) last issued its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 56.43%. The firm had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter in the previous year, the firm posted $1.70 EPS. The company’s revenue for the quarter was up 20.6% compared to the same quarter last year. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. On average, sell-side analysts predict that Oracle Corporation will post 6.45 earnings per share for the current year.

Oracle Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 1.2%. Oracle’s dividend payout ratio (DPR) is 34.31%.

Insider Activity

In related news, EVP Stuart Levey sold 15,000 shares of the business’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $176.19, for a total transaction of $2,642,850.00. Following the completion of the transaction, the executive vice president directly owned 3,429 shares in the company, valued at approximately $604,155.51. The trade was a 81.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 40.90% of the company’s stock.

Hedge Funds Weigh In On Oracle

Hedge funds have recently modified their holdings of the company. HFM Investment Advisors LLC lifted its stake in shares of Oracle by 290.9% during the 4th quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock valued at $25,000 after buying an additional 96 shares in the last quarter. Basepoint Wealth LLC bought a new stake in Oracle during the fourth quarter valued at about $26,000. FSA Wealth Management LLC purchased a new position in shares of Oracle in the third quarter valued at about $28,000. Osbon Capital Management LLC purchased a new position in shares of Oracle in the fourth quarter valued at about $28,000. Finally, Joseph Group Capital Management bought a new position in shares of Oracle in the fourth quarter worth about $29,000. 42.44% of the stock is currently owned by institutional investors.

Oracle Company Profile

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.