Oracle (NYSE:ORCL) Trading Down 5.5% Following Analyst Downgrade

Shares of Oracle Corporation (NYSE:ORCL) were down 5.5% during mid-day trading on Tuesday after TD Cowen lowered their price target on the stock from $300.00 to $240.00. TD Cowen currently has a buy rating on the stock. Oracle traded as low as $139.95 and last traded at $140.99. Approximately 25,023,501 shares changed hands during trading, a decline of 13% from the average daily volume of 28,794,771 shares. The stock had previously closed at $149.12.

Other equities analysts have also recently issued reports about the company. Cantor Fitzgerald restated an “overweight” rating and set a $284.00 target price on shares of Oracle in a research report on Thursday, June 11th. Bank of America boosted their price target on shares of Oracle from $200.00 to $240.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Scotiabank reissued an “overweight” rating on shares of Oracle in a research note on Thursday, June 11th. Moffett Nathanson set a $325.00 target price on Oracle in a research note on Thursday, June 11th. Finally, Wedbush reduced their price objective on shares of Oracle from $275.00 to $240.00 and set an “outperform” rating on the stock in a research report on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Oracle has a consensus rating of “Moderate Buy” and an average price target of $262.39.

Insider Activity

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the 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 sale, the insider owned 400,000 shares in the company, valued at $63,664,000. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 40.90% of the company’s stock.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s contracted backlog reached approximately $638 billion at the end of fiscal 2026, up 363% year over year. Management expects about 12% of that backlog to convert to revenue within 12 months, supporting the long-term cloud-growth outlook. Oracle Has $638 Billion of Contracted Backlog and a $430 Billion Stock
• Positive Sentiment: Analysts at Zacks see a favorable setup for another earnings beat based on Oracle’s historical surprise record and current estimate trends. Oracle’s latest quarterly report also exceeded consensus for both earnings and revenue. Why Oracle Is Poised to Beat Earnings Estimates Again
• Positive Sentiment: TD Cowen lowered its price target to $240 from $300 but maintained a “buy” rating, implying substantial potential upside if Oracle delivers on its AI-cloud growth plans. Wall Street Is Divided on Oracle Stock
• Neutral Sentiment: Oracle’s next quarterly results are expected in mid-September, making the stock particularly sensitive to updates on cloud bookings, revenue conversion, capital spending and financing needs.
• Negative Sentiment: Oracle generated roughly negative $23.7 billion in free cash flow last fiscal year, raised $43 billion in debt, and expects to raise about $40 billion more in fiscal 2027. Higher Treasury yields increase the cost and risk of this debt-funded AI buildout. Why Is Oracle Stock Down Today?
• Negative Sentiment: Investors are also concerned about approximately $260 billion in additional lease commitments, largely tied to data centers, as spending arrives before contracted bookings fully translate into revenue. Analysts remain divided over leverage, execution risk and the reported short position held by Michael Burry. Wall Street Is Divided on Oracle Stock

Institutional Investors Weigh In On Oracle

A number of large investors have recently added to or reduced their stakes in the stock. FSA Wealth Management LLC bought a new stake in shares of Oracle in the third quarter worth $28,000. Mpwm Advisory Solutions LLC increased its holdings in Oracle by 76.9% in the 3rd quarter. Mpwm Advisory Solutions LLC now owns 115 shares of the enterprise software provider’s stock worth $32,000 after acquiring an additional 50 shares in the last quarter. Turning Point Benefit Group Inc. bought a new stake in shares of Oracle during the 3rd quarter valued at $35,000. HFM Investment Advisors LLC raised 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 valued at $25,000 after acquiring an additional 96 shares during the period. Finally, Basepoint Wealth LLC bought a new stake in Oracle during the 4th quarter valued at approximately $26,000. Institutional investors own 42.44% of the company’s stock.

Oracle Stock Performance

The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12. The stock has a market cap of $406.12 billion, a P/E ratio of 24.18, a PEG ratio of 0.94 and a beta of 1.72. The firm’s 50-day moving average price is $140.21 and its 200-day moving average price is $160.55.

Oracle (NYSE:ORCL) last released its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating the consensus estimate of $1.96 by $0.15. The business had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The business’s revenue was up 20.6% on a year-over-year basis. During the same quarter 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. Sell-side analysts expect that Oracle Corporation will post 6.49 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The firm also recently declared 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 dividend on an annualized basis and a yield of 1.4%. Oracle’s dividend payout ratio is presently 34.31%.

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.