Oracle (NYSE:ORCL) Trading 2.4% Higher – Should You Buy?

Oracle Corporation (NYSE:ORCL)’s share price was up 2.4% during trading on Tuesday . The company traded as high as $170.70 and last traded at $162.52. Approximately 37,250,985 shares were traded during mid-day trading, an increase of 30% from the average session volume of 28,748,742 shares. The stock had previously closed at $158.78.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Analyst support is lifting sentiment. Multiple firms have reiterated bullish ratings or raised price targets, citing accelerating cloud growth, Oracle Cloud Infrastructure expansion, improving software trends and potential revenue acceleration. Analysts Back Oracle Stock Before Quarterly Report
• Positive Sentiment: AI demand and the OpenAI relationship are back in focus. OpenAI’s latest model and renewed confidence in its ecosystem are reinforcing Oracle’s role as an AI-cloud infrastructure provider. Investors are watching whether the reported roughly $300 billion OpenAI opportunity can translate into actual deployments and revenue. Oracle’s stock gets a boost as the OpenAI ecosystem comes back into favor
• Positive Sentiment: Oracle’s $638 billion backlog provides substantial future-demand visibility. Investors increasingly view the backlog and partnerships, including infrastructure arrangements involving Hewlett Packard Enterprise, as evidence of strong AI-compute demand and a potentially powerful growth pipeline. Oracle’s $638 Billion Cloud Infrastructure Backlog Could Make It One of the Best-Performing AI Stocks Through 2028
• Neutral Sentiment: Thursday’s earnings are the immediate catalyst. The market expects investors to focus less on demand and more on cloud-growth rates, backlog conversion, capital expenditures, free cash flow, debt issuance and funding plans. Options markets imply an unusually large post-earnings move, signaling elevated uncertainty. Oracle’s $638 Billion Backlog Meets Its Balance Sheet on Thursday
• Negative Sentiment: Leverage, heavy spending and cash-flow concerns could limit upside. Analysts warn that financing the AI buildout may require substantial borrowing or equity issuance, while higher interest rates increase the pressure on returns. One analyst maintains a Hold rating because rising leverage, capex and dependence on OpenAI offset the growth opportunity. Brian White Maintains Hold on Oracle
• Negative Sentiment: Regulatory and insider-selling headlines add risk. EU regulators have raised questions about Oracle’s cloud licensing, while reported insider activity shows selling and no purchases over the past six months. These issues are not immediate earnings drivers but may weigh on confidence. EU Regulators Warn Oracle Ahead of Earnings

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. UBS Group reaffirmed an “outperform” rating on shares of Oracle in a report on Friday, August 21st. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Oracle in a research note on Wednesday, September 2nd. Royal Bank Of Canada reissued a “sector perform” rating and issued a $190.00 price target on shares of Oracle in a report on Friday. Jefferies Financial Group decreased their price objective on Oracle from $320.00 to $290.00 and set a “buy” rating on the stock in a research report on Wednesday, September 2nd. Finally, Wedbush dropped their target price on Oracle from $275.00 to $240.00 and set an “outperform” rating for the company in a research report on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $261.68.

Oracle Stock Performance

The stock has a 50 day moving average price of $139.94 and a two-hundred day moving average price of $160.34. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 3.21. The company has a market cap of $468.13 billion, a price-to-earnings ratio of 27.88, a P/E/G ratio of 1.18 and a beta of 1.74.

Oracle (NYSE:ORCL) last announced its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, topping analysts’ consensus estimates of $1.96 by $0.15. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The business had revenue of $19.18 billion during the quarter, compared to analysts’ expectations of $19.10 billion. During the same period in the previous year, the firm earned $1.70 earnings per share. The firm’s quarterly revenue 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. Analysts predict that Oracle Corporation will post 6.49 EPS for the current year.

Oracle Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were paid a $0.50 dividend. The ex-dividend date of this dividend was Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.2%. Oracle’s dividend payout ratio is 34.31%.

Insider Buying and Selling at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the transaction, the insider owned 400,000 shares of the company’s stock, valued at $63,664,000. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing 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. 40.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Oracle

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. HFM Investment Advisors LLC lifted its holdings in Oracle by 290.9% during the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock worth $25,000 after acquiring an additional 96 shares in the last quarter. Basepoint Wealth LLC bought a new stake in shares of Oracle in the fourth quarter worth about $26,000. FSA Wealth Management LLC acquired a new stake in shares of Oracle during the third quarter worth about $28,000. Osbon Capital Management LLC acquired a new stake in shares of Oracle during the fourth quarter worth about $28,000. Finally, Basso Capital Management L.P. bought a new position in shares of Oracle during the 4th quarter valued at about $29,000. 42.44% of the stock is owned by institutional investors.

About Oracle

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.