Oracle (NYSE:ORCL) Stock Price Down 9.7% – Should You Sell?

Oracle Corporation (NYSE:ORCL)’s stock price was down 9.7% on Friday . The stock traded as low as $209.45 and last traded at $213.41. Approximately 28,668,864 shares were traded during trading, an increase of 6% from the average daily volume of 27,065,193 shares. The stock had previously closed at $236.34.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Several analysts remain constructive, with BTIG reiterating a buy rating and a $400 target, while other recent reports point to continued AI and cloud demand as a long-term growth driver. Read More
• Positive Sentiment: Oracle’s recent revenue growth and earnings strength continue to support the bull case, with Q3 revenue up more than 21% year over year and backlog/demand commentary still viewed as strong. Article
• Neutral Sentiment: Wall Street is now looking for details in Oracle’s upcoming fiscal Q4 report on cloud growth, remaining performance obligations, and the pace of its AI data center buildout, which could either reassure investors or add to concerns. Article
• Neutral Sentiment: Some coverage highlights Oracle as a top data-infrastructure name and notes that options traders are positioning ahead of earnings, showing continued interest but also heightened event risk. Article
• Negative Sentiment: RBC Capital Markets raised questions about the pace of Oracle’s AI data center buildout and whether the company has resolved capacity constraints, fueling skepticism around near-term execution. Article
• Negative Sentiment: Investor concern is also being driven by Oracle’s growing capex needs, debt-funded AI spending, and rising leverage/capital intensity, with some commentary warning the stock may be vulnerable if spending outpaces near-term returns. Article
• Negative Sentiment: Additional pressure came from broader AI stock weakness and reports of a shareholder law firm investigating whether Oracle misled investors about the risks tied to its AI infrastructure strategy and spending plans. Article

Wall Street Analysts Forecast Growth

Several brokerages have commented on ORCL. Wedbush raised their target price on shares of Oracle from $225.00 to $275.00 and gave the stock an “outperform” rating in a report on Wednesday, May 13th. Scotiabank reiterated an “outperform” rating on shares of Oracle in a report on Tuesday. Barclays lowered their price objective on shares of Oracle from $310.00 to $230.00 and set an “overweight” rating for the company in a research report on Monday, March 9th. Stephens reaffirmed an “equal weight” rating and issued a $254.00 price objective on shares of Oracle in a research report on Tuesday, April 7th. Finally, Monness Crespi & Hardt reaffirmed a “hold” rating on shares of Oracle in a research note on Wednesday, March 11th. Three analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Oracle has an average rating of “Moderate Buy” and a consensus target price of $269.71.

Oracle Stock Down 9.7%

The firm’s 50 day moving average price is $177.88 and its two-hundred day moving average price is $178.30. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 3.66. The company has a market capitalization of $613.78 billion, a P/E ratio of 38.31, a PEG ratio of 2.16 and a beta of 1.65.

Oracle (NYSE:ORCL) last announced its earnings results on Tuesday, March 10th. The enterprise software provider reported $1.79 EPS for the quarter, topping the consensus estimate of $1.71 by $0.08. Oracle had a net margin of 25.30% and a return on equity of 62.70%. The business had revenue of $17.19 billion during the quarter, compared to analysts’ expectations of $16.91 billion. During the same quarter in the prior year, the company posted $1.47 earnings per share. The firm’s revenue was up 21.7% on a year-over-year basis. Oracle has set its Q4 2026 guidance at 1.960-2.000 EPS. Equities research analysts forecast that Oracle Corporation will post 6.08 EPS for the current year.

Oracle Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, April 24th. Investors of record on Thursday, April 9th were given a $0.50 dividend. The ex-dividend date of this dividend was Thursday, April 9th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.9%. Oracle’s payout ratio is currently 35.91%.

Insider Transactions at Oracle

In related news, EVP Stuart Levey sold 15,000 shares of the company’s stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $176.19, for a total transaction of $2,642,850.00. Following the sale, the executive vice president owned 3,429 shares in the company, valued at approximately $604,155.51. This represents a 81.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Norges Bank acquired a new position in Oracle during the fourth quarter worth $4,336,031,000. Capital Research Global Investors lifted its stake in Oracle by 29.3% in the fourth quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider’s stock valued at $5,874,070,000 after acquiring an additional 6,826,299 shares during the last quarter. Vanguard Group Inc. grew its position in shares of Oracle by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider’s stock valued at $34,070,674,000 after acquiring an additional 5,841,584 shares during the period. Cardano Risk Management B.V. increased its stake in shares of Oracle by 882.3% during the 4th quarter. Cardano Risk Management B.V. now owns 4,991,010 shares of the enterprise software provider’s stock worth $972,798,000 after purchasing an additional 4,482,934 shares during the last quarter. Finally, American Century Companies Inc. increased its stake in shares of Oracle by 333.7% during the 3rd quarter. American Century Companies Inc. now owns 5,238,006 shares of the enterprise software provider’s stock worth $1,473,137,000 after purchasing an additional 4,030,382 shares during the last quarter. Institutional investors and hedge funds own 42.44% of the company’s stock.

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.