Oracle (NYSE:ORCL) Shares Up 3.5% – Here’s What Happened

Oracle Corporation (NYSE:ORCL)’s stock price was up 3.5% during trading on Wednesday . The company traded as high as $133.90 and last traded at $132.3550. 48,233,332 shares were traded during mid-day trading, an increase of 67% from the average session volume of 28,826,076 shares. The stock had previously closed at $127.94.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s cloud and database momentum remains strong, with reports noting its Multicloud AI Database grew 404% year over year and that backlog continues to expand. Article Title
• Positive Sentiment: Oracle reportedly leads the race for a highly secure cloud contract with the Japanese government, which could support future revenue and validate its cloud infrastructure strategy. Article Title
• Positive Sentiment: Some analysts remain constructive, with Piper Sandler reportedly keeping a buy rating and arguing the selloff has created substantial upside if Oracle executes. Article Title
• Neutral Sentiment: Several articles discuss Oracle as a potential rebound or deep-value stock after its steep decline, but these are largely opinion pieces rather than new catalysts. Article Title
• Negative Sentiment: New Mexico regulators rejected a natural gas pipeline permit tied to an Oracle data center, adding another hurdle to the company’s AI infrastructure expansion. Article Title
• Negative Sentiment: Multiple market reports emphasized the stock’s steep drop, reflecting investor concern that Oracle’s AI spending spree may be outweighing near-term earnings benefits. Article Title

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on ORCL. Stephens restated an “equal weight” rating and set a $164.00 price objective on shares of Oracle in a research note on Thursday, June 11th. Citigroup reaffirmed a “market outperform” rating on shares of Oracle in a research report on Thursday, June 11th. Evercore reissued an “outperform” rating and set a $245.00 target price on shares of Oracle in a research report on Monday, June 8th. Scotiabank reissued an “overweight” rating on shares of Oracle in a research report on Thursday, June 11th. Finally, Sanford C. Bernstein raised their target price on shares of Oracle from $319.00 to $325.00 and gave the company an “outperform” rating in a research note on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Oracle presently has an average rating of “Moderate Buy” and a consensus target price of $268.27.

Oracle Stock Down 6.2%

The firm has a market capitalization of $357.96 billion, a price-to-earnings ratio of 21.32, a P/E/G ratio of 0.83 and a beta of 1.72. 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 company’s 50 day moving average price is $178.69 and its 200 day moving average price is $169.76.

Oracle (NYSE:ORCL) last released its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.96 by $0.15. The firm had revenue of $19.18 billion for the quarter, compared to the consensus estimate of $19.10 billion. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The firm’s revenue was up 20.6% on a year-over-year basis. During the same period in the prior year, the firm earned $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. As a group, research analysts forecast that Oracle Corporation will post 6.47 earnings per share for the current fiscal year.

Oracle Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be given a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a yield of 1.6%. Oracle’s dividend payout ratio (DPR) is currently 34.31%.

Insider Buying and Selling at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the firm’s stock in a transaction 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 completion of 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of ORCL. Norges Bank acquired a new stake in Oracle during the fourth quarter valued at $4,336,031,000. Capital Research Global Investors raised its stake in shares of Oracle by 29.3% during the 4th quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider’s stock worth $5,874,070,000 after buying an additional 6,826,299 shares during the period. Vanguard Group Inc. increased its holdings in Oracle by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider’s stock worth $34,070,674,000 after acquiring an additional 5,841,584 shares in the last quarter. Cardano Risk Management B.V. lifted its holdings in Oracle by 882.3% during the fourth quarter. Cardano Risk Management B.V. now owns 4,991,010 shares of the enterprise software provider’s stock valued at $972,798,000 after purchasing an additional 4,482,934 shares in the last quarter. Finally, FIL Ltd raised its position in shares of Oracle by 1,605.7% during the 4th quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider’s stock worth $775,048,000 after purchasing an additional 3,743,314 shares during the last quarter. 42.44% of the stock is owned by institutional investors and hedge funds.

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.