Oracle Corporation (NYSE:ORCL – Get Free Report)’s share price rose 3.3% during trading on Monday. The company traded as high as $120.26 and last traded at $119.9390. Approximately 27,376,595 shares traded hands during trading, a decline of 11% from the average session volume of 30,708,133 shares. The stock had previously closed at $116.10.
Oracle News Roundup
Here are the key news stories impacting Oracle this week:
- Positive Sentiment: Oppenheimer identified Oracle among the software companies positioned to benefit from AI, reinforcing the bullish view that its cloud infrastructure and software business can capture AI-related growth. Article: Microsoft, Oracle, SAP considered AI winners among software companies
- Positive Sentiment: ETFs bought $111.1 million of Oracle shares on Thursday, a sign of institutional fund demand that may help support the stock. Article: ETFs Are Buying Oracle
- Positive Sentiment: One Seeking Alpha contributor argues that fewer data-center permits could ultimately be beneficial, potentially limiting excess infrastructure buildout. This is an opinion-based counterpoint to concerns about Oracle’s AI expansion. Article: Oracle: Fewer Datacenter Permits Could Be A Good Thing
- Neutral Sentiment: Oracle announced a $1.55 million grant for a Nashville community hub renovation and redevelopment. The grant supports community initiatives but is unlikely to materially affect Oracle’s financial outlook. Article: Oracle’s $1.55 Million Grant Helps Trinity Community Commons
- Negative Sentiment: Microsoft is reportedly winding down an Oracle infrastructure arrangement used for an AI-supported version of Bing, involving older Nvidia chips. The loss raises questions about demand for Oracle’s AI capacity, though the report does not quantify the financial impact. Article: Microsoft reportedly winds down Oracle AI infrastructure contract
- Negative Sentiment: Recent bearish commentary points to Oracle’s fundraising needs, debt-funded AI infrastructure buildout and uncertainty around major projects. A Seeking Alpha contributor downgraded the stock, while another report noted ING plans to sell data-center loans that include a large Oracle-related AI project. Article: Oracle: A Turnaround Is Not Imminent Article: Is Oracle Losing Ground In AI Infrastructure Demand?
- Negative Sentiment: Oracle’s abandoned $7 billion Tencent chip deal adds uncertainty, and one report says the stock is on pace for its worst calendar year since 2001. That history may interest contrarian investors, but it does not establish that a rebound is imminent. Article: Oracle Just Walked Away From a $7 Billion Tencent Deal Article: Oracle Stock Is on Pace for Its Worst Year Since 2001
Wall Street Analysts Forecast Growth
Several research analysts have recently weighed in on the stock. Guggenheim reissued a “buy” rating on shares of Oracle in a research report on Thursday, October 29th. Robert W. Baird set a $215.00 price objective on shares of Oracle in a research report on Thursday, October 29th. Wells Fargo & Company reduced their target price on shares of Oracle from $280.00 to $250.00 and set an “overweight” rating on the stock in a research note on Monday, October 26th. The Goldman Sachs Group lowered shares of Oracle from a “neutral” rating to a “sell” rating in a report on Monday, November 2nd. Finally, Freedom Broker lowered their price objective on Oracle from $210.00 to $205.00 and set a “buy” rating for the company in a research report on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Oracle presently has an average rating of “Moderate Buy” and a consensus price target of $249.27.
Read Our Latest Report on Oracle
Oracle Price Performance
The company has a market capitalization of $362.66 billion, a PE ratio of 18.80, a price-to-earnings-growth ratio of 0.81 and a beta of 1.79. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.17 and a quick ratio of 1.17. The stock’s 50 day simple moving average is $139.11 and its 200-day simple moving average is $155.40.
Oracle (NYSE:ORCL – Get Free Report) last posted its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, beating the consensus estimate of $1.74 by $0.18. Oracle had a net margin of 26.36% and a return on equity of 48.85%. The business had revenue of $19.34 billion during the quarter, compared to analyst estimates of $19.13 billion. During the same quarter last year, the firm posted $1.47 earnings per share. The business’s revenue for the quarter was up 29.6% compared to the same quarter last year. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. As a group, equities analysts forecast that Oracle Corporation will post 6.71 earnings per share for the current fiscal year.
Oracle Dividend Announcement
The business also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Friday, October 9th were issued a $0.50 dividend. The ex-dividend date was Friday, October 9th. This represents a $2.00 dividend on an annualized basis and a yield of 1.7%. Oracle’s dividend payout ratio (DPR) is 31.35%.
Insider Buying and Selling
In related news, Director Stephen Rusckowski purchased 25,000 shares of the business’s stock in a transaction on Tuesday, September 29th. The shares were bought at an average price of $139.35 per share, for a total transaction of $3,483,750.00. Following the acquisition, the director directly owned 25,390 shares in the company, valued at $3,538,096.50. This trade represents a 6,410.26% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Michael Sicilia sold 22,562 shares of the stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $151.59, for a total value of $3,420,173.58. Following the completion of the sale, the chief executive officer directly owned 182,929 shares in the company, valued at $27,730,207.11. This represents a 10.98% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 36,075 shares of company stock valued at $5,342,123 in the last three months. 38.40% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows
A number of institutional investors have recently added to or reduced their stakes in the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Oracle by 0.8% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 14,680,278 shares of the enterprise software provider’s stock valued at $2,151,395,000 after acquiring an additional 123,294 shares during the last quarter. Fisher Asset Management LLC grew its stake in shares of Oracle by 3.1% in the 3rd quarter. Fisher Asset Management LLC now owns 13,670,982 shares of the enterprise software provider’s stock worth $1,877,026,000 after buying an additional 409,531 shares during the last quarter. Bank of New York Mellon Corp raised its position in shares of Oracle by 3.0% in the 1st quarter. Bank of New York Mellon Corp now owns 13,251,059 shares of the enterprise software provider’s stock worth $1,949,363,000 after purchasing an additional 384,984 shares during the last quarter. Amundi grew its holdings in shares of Oracle by 1.5% during the second quarter. Amundi now owns 9,878,184 shares of the enterprise software provider’s stock valued at $1,447,648,000 after buying an additional 144,087 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in Oracle by 1.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 8,586,492 shares of the enterprise software provider’s stock worth $1,262,827,000 after buying an additional 147,048 shares during the last quarter. Hedge funds and other institutional investors own 42.44% of the company’s stock.
About Oracle
Oracle Corporation is a technology company that develops and provides database software, cloud services, and enterprise applications. Its products help organizations manage data, run business operations, and build and deploy applications.
Oracle’s offerings include Oracle Database, Oracle Cloud Infrastructure, and cloud-based applications for functions such as finance, human resources, supply chain management, and customer experience. The company also provides software support, consulting, and related services.
Founded in 1977 as Software Development Laboratories, Oracle serves businesses and public-sector organizations across geographies worldwide.
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