Oracle (NYSE:ORCL) Shares Down 1.4% – Time to Sell?

Oracle Corporation (NYSE:ORCL) fell 1.4% during trading on Friday. The stock traded as low as $121.76 and last traded at $125.3120. 22,398,375 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 30,637,395 shares. The stock had previously closed at $127.11.

Oracle News Roundup

Here’s some of the latest news about ORCL:

• Positive Sentiment: The U.S. Department of Veterans Affairs and Department of War have joined Oracle Health Information Network, expanding its reach and potentially strengthening Oracle’s healthcare business through broader information exchange. Article
• Neutral Sentiment: A report says Oracle expects free cash flow to turn positive in fiscal 2028 as it invests in AI cloud infrastructure. That outlook highlights the potential payoff from expansion, but also underscores the time and spending required before cash generation improves. Article
• Negative Sentiment: Potential U.S. restrictions on Chinese companies remotely accessing AI chips could threaten demand from that market. Separately, Microsoft is reportedly reassessing contracts with neocloud providers and prioritizing its own data centers, raising concern about competition and customer commitments for Oracle’s cloud expansion. Article Article

Analysts Set New Price Targets

ORCL has been the topic of several recent research reports. Wells Fargo & Company cut their price objective on shares of Oracle from $280.00 to $250.00 and set an “overweight” rating on the stock in a research report on Monday, October 26th. Guggenheim restated a “buy” rating on shares of Oracle in a research note on Thursday, October 29th. Freedom Broker cut their price target on shares of Oracle from $210.00 to $205.00 and set a “buy” rating on the stock in a report on Monday, September 14th. KeyCorp restated an “overweight” rating on shares of Oracle in a report on Tuesday. Finally, DZ Bank reaffirmed a “buy” rating on shares of Oracle in a research note on Thursday, September 17th. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $249.27.

Oracle Stock Down 1.4%

The business has a 50 day moving average price of $137.24 and a 200 day moving average price of $154.31. The firm has a market capitalization of $378.91 billion, a P/E ratio of 19.64, a price-to-earnings-growth ratio of 0.90 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.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, topping the consensus estimate of $1.74 by $0.18. The company had revenue of $19.34 billion for the quarter, compared to the consensus estimate of $19.13 billion. Oracle had a return on equity of 48.85% and a net margin of 26.36%. The company’s revenue for the quarter was up 29.6% on a year-over-year basis. During the same period in the previous year, the business posted $1.47 EPS. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. On average, analysts predict that Oracle Corporation will post 6.71 earnings per share for the current year.

Oracle Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 9th were issued a $0.50 dividend. The ex-dividend date of this dividend was Friday, October 9th. This represents a $2.00 dividend on an annualized basis and a yield of 1.6%. Oracle’s dividend payout ratio is 31.35%.

Insiders Place Their Bets

In related news, EVP Maria Smith sold 2,631 shares of the stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total value of $399,122.70. Following the completion of the sale, the executive vice president owned 64,357 shares in the company, valued at approximately $9,762,956.90. This trade represents a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael D. Sicilia sold 22,562 shares of Oracle stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $151.59, for a total value of $3,420,173.58. Following the sale, the chief executive officer directly owned 182,929 shares in the company, valued at approximately $27,730,207.11. This trade represents a 10.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 36,075 shares of company stock worth $5,342,123 in the last ninety days. Insiders own 38.40% of the company’s stock.

Hedge Funds Weigh In On Oracle

A number of hedge funds have recently modified their holdings of ORCL. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Oracle in the 2nd quarter valued at about $625,454,000. Edmond DE Rothschild Holding S.A. grew its position in Oracle by 8.7% during the 2nd quarter. Edmond DE Rothschild Holding S.A. now owns 79,008 shares of the enterprise software provider’s stock worth $11,579,000 after acquiring an additional 6,296 shares during the last quarter. Generate Investment Management Ltd increased its stake in Oracle by 178.4% in the 3rd quarter. Generate Investment Management Ltd now owns 407,314 shares of the enterprise software provider’s stock worth $55,924,000 after purchasing an additional 261,019 shares during the period. Sawyer & Company Inc purchased a new position in Oracle in the 3rd quarter worth approximately $8,243,000. Finally, Verus Wealth Management LLC purchased a new position in Oracle in the 3rd quarter worth approximately $1,365,000. 42.44% of the stock is owned by institutional investors and hedge funds.

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.