Oracle (NYSE:ORCL) Trading Down 1.8% – Should You Sell?

Oracle Corporation (NYSE:ORCL) shares dropped 1.8% during trading on Wednesday . The company traded as low as $116.20 and last traded at $117.77. 27,206,648 shares traded hands during trading, a decline of 7% from the average session volume of 29,253,813 shares. The stock had previously closed at $119.96.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: DA Davidson analyst Gil Luria argues that Wall Street is effectively assigning little value to Oracle’s reported $630 billion AI backlog. He believes the company’s large cloud-infrastructure contracts and enterprise demand for AI capacity could provide substantial upside as investors gain confidence in the backlog’s economics. Wall Street Is Valuing Oracle’s $630B AI Backlog at Zero
• Positive Sentiment: A previously announced $7 billion Pentagon cloud deal is being cited as evidence of Oracle’s AI-cloud momentum and a source of potential revenue visibility. Oracle also expanded OCI distribution in Australia through Ingram Micro, broadening access to its cloud and AI services. $7 Billion Reason to Buy Oracle Stock Now
• Positive Sentiment: Some research continues to view the selloff as an opportunity, pointing to Oracle’s record cloud growth, AI backlog and partnerships. Consensus price targets imply substantial upside, although those targets have not prevented continued selling. Oracle vs. Alibaba
• Neutral Sentiment: Oracle’s latest reported quarter exceeded expectations, with adjusted EPS of $2.11 versus $1.96 expected and revenue of $19.18 billion versus $19.10 billion expected. Revenue increased 20.6% year over year, but investors are currently focusing more on forward AI spending and funding risks.
• Negative Sentiment: Oracle’s credit-default-swap costs have risen to roughly 200 basis points, signaling increased investor concern about its debt burden and the returns on debt-funded AI infrastructure. The broader hyperscaler group issued about $194 billion of bonds through early July, intensifying worries about supply, yields and AI-capital-spending fatigue. Oracle Stock Drops as Default Insurance Hits 200 Basis Points
• Negative Sentiment: Investor concern also surrounds Executive Chairman Larry Ellison’s personal guarantee of $40.4 billion backing equity financing for Paramount Skydance’s proposed Warner Bros. Discovery transaction. The commitment could create indirect financial and reputational risk for Oracle shareholders. Larry Ellison’s Personal Guarantee

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Morgan Stanley reiterated a “mixed” rating on shares of Oracle in a report on Thursday, June 11th. Sanford C. Bernstein upped their price target on Oracle from $319.00 to $325.00 and gave the stock an “outperform” rating in a report on Thursday, June 11th. BTIG Research reaffirmed a “buy” rating and issued a $400.00 price objective on shares of Oracle in a research report on Friday, June 5th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $190.00 price objective on shares of Oracle in a research note on Thursday, June 11th. Finally, Piper Sandler boosted their target price on shares of Oracle from $210.00 to $225.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Oracle currently has a consensus rating of “Moderate Buy” and an average target price of $265.03.

Oracle Trading Down 1.8%

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 business has a 50 day simple moving average of $167.75 and a two-hundred day simple moving average of $165.67. The stock has a market cap of $339.23 billion, a price-to-earnings ratio of 20.20, a price-to-earnings-growth ratio of 0.75 and a beta of 1.72.

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

Oracle Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were issued a $0.50 dividend. The ex-dividend date of this dividend was Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 1.7%. Oracle’s dividend payout ratio is currently 34.31%.

Insider Buying and Selling

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

Institutional Investors Weigh In On Oracle

A number of institutional investors have recently modified their holdings of the stock. Brighton Jones LLC increased its holdings in shares of Oracle by 189.3% in the 4th quarter. Brighton Jones LLC now owns 153,580 shares of the enterprise software provider’s stock valued at $25,593,000 after acquiring an additional 100,494 shares during the last quarter. Revolve Wealth Partners LLC lifted its stake in Oracle by 8.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 5,418 shares of the enterprise software provider’s stock worth $903,000 after purchasing an additional 404 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in Oracle by 21.5% in the second quarter. Sivia Capital Partners LLC now owns 4,348 shares of the enterprise software provider’s stock worth $951,000 after purchasing an additional 768 shares during the period. United Bank boosted its holdings in Oracle by 6.8% in the second quarter. United Bank now owns 15,038 shares of the enterprise software provider’s stock worth $3,288,000 after purchasing an additional 963 shares during the period. Finally, Schnieders Capital Management LLC. increased its stake in Oracle by 19.2% during the second quarter. Schnieders Capital Management LLC. now owns 52,856 shares of the enterprise software provider’s stock valued at $11,556,000 after purchasing an additional 8,530 shares during the last quarter. Institutional investors and hedge funds own 42.44% of the company’s stock.

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.