Oracle (NYSE:ORCL) Shares Down 4.6% – Here’s Why

Oracle Corporation (NYSE:ORCL) shares traded down 4.6% during trading on Thursday . The company traded as low as $119.44 and last traded at $120.0920. Approximately 29,206,781 shares were traded during trading, an increase of 0% from the average session volume of 29,090,865 shares. The stock had previously closed at $125.84.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle won a nearly $7 billion, 10-year U.S. Department of Defense software contract, a meaningful revenue win that could strengthen its government business and support sentiment around its cloud and enterprise software platform. Oracle signs 10-year software contract with Pentagon worth up to $7 billion
• Positive Sentiment: Retail traders and some analysts see the Pentagon award as a potential catalyst for more federal AI and enterprise-software deals, which could improve Oracle’s growth outlook near term. What’s Going On With Oracle Stock on Friday?
• Neutral Sentiment: Commentary around Oracle’s AI infrastructure strategy remains mixed: supporters point to a large AI order backlog, while skeptics question whether the company can turn that demand into profits quickly enough. Oracle Stock (ORCL) Opinions on AI Infrastructure Investments and Stock Decline
• Negative Sentiment: Bearish articles continue to highlight Oracle’s large capex burden, rising debt load, and concerns that free cash flow may stay pressured as it builds out AI data centers. Here’s why Oracle stock may still hit $100 despite the Pentagon contract
• Negative Sentiment: Oracle is also facing broader investor concern over slowing web traffic and weak sentiment around its AI spending, with some commentary framing the company as overextended. Ca$htag$: ORCL Becoming AI “House of Cards” as CapEx Concerns Swell

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on ORCL shares. TD Cowen lifted their price objective on Oracle from $250.00 to $300.00 and gave the stock a “buy” rating in a research report on Monday, June 8th. CLSA started coverage on Oracle in a research note on Monday. They issued a “hold” rating and a $145.00 price target for the company. Stephens reiterated an “equal weight” rating and issued a $164.00 price target on shares of Oracle in a report on Thursday, June 11th. UBS Group boosted their price objective on shares of Oracle from $250.00 to $285.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Finally, Citigroup restated a “market outperform” rating on shares of Oracle in a report on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $265.03.

Oracle Stock Performance

The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 3.21. The firm has a market cap of $330.97 billion, a P/E ratio of 19.71, a P/E/G ratio of 0.75 and a beta of 1.72. The business has a fifty day simple moving average of $170.31 and a 200-day simple moving average of $166.88.

Oracle (NYSE:ORCL) last announced its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating analysts’ consensus estimates of $1.96 by $0.15. The firm had revenue of $19.18 billion for the quarter, compared to analysts’ expectations of $19.10 billion. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The company’s quarterly revenue was up 20.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.70 EPS. 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 6.47 EPS for the current fiscal year.

Oracle Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were paid a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 1.7%. Oracle’s payout ratio is presently 34.31%.

Insiders Place Their Bets

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of the company’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total value of $63,664,000.00. Following the sale, the insider owned 400,000 shares in the company, valued at approximately $63,664,000. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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.

Institutional Trading of Oracle

Hedge funds have recently made changes to their positions in the stock. Trust Asset Management LLC boosted its holdings in Oracle by 3.7% in the second quarter. Trust Asset Management LLC now owns 18,516 shares of the enterprise software provider’s stock worth $2,714,000 after acquiring an additional 667 shares in the last quarter. Whitener Capital Management Inc. increased its holdings in shares of Oracle by 2.4% during the second quarter. Whitener Capital Management Inc. now owns 5,149 shares of the enterprise software provider’s stock valued at $755,000 after acquiring an additional 119 shares in the last quarter. JFS Wealth Advisors LLC increased its holdings in shares of Oracle by 5.6% during the second quarter. JFS Wealth Advisors LLC now owns 2,393 shares of the enterprise software provider’s stock valued at $351,000 after acquiring an additional 126 shares in the last quarter. Tema ETFs LLC raised its position in shares of Oracle by 10.7% in the 2nd quarter. Tema ETFs LLC now owns 34,424 shares of the enterprise software provider’s stock worth $5,045,000 after purchasing an additional 3,335 shares during the last quarter. Finally, West Branch Capital LLC raised its position in shares of Oracle by 0.8% in the 2nd quarter. West Branch Capital LLC now owns 43,013 shares of the enterprise software provider’s stock worth $6,304,000 after purchasing an additional 360 shares during the last quarter. 42.44% of the stock is 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.