DA Davidson Reiterates Buy Rating for Oracle (NYSE:ORCL)

Key Points

• DA Davidson reiterated its “buy” rating on Oracle and set a $225 price target, implying approximately 45% upside from the reported share price. Analysts overall maintain a “Moderate Buy” consensus with an average target of $255.92.
• Oracle exceeded quarterly expectations, reporting $1.92 in earnings per share versus the $1.74 consensus and revenue of about $19.34 billion, up 29.6% year over year.
• AI cloud demand is driving optimism, with cloud infrastructure revenue reportedly surging 121% and a large remaining performance obligation backlog; however, substantial AI-related capital spending, data-center delays and execution risks remain concerns.

Oracle (NYSE:ORCL - Get Free Report)'s stock had its "buy" rating reiterated by DA Davidson in a research report issued to clients and investors on Friday, Benzinga reports. They presently have a $225.00 price objective on the enterprise software provider's stock. DA Davidson's price objective would indicate a potential upside of 45.18% from the stock's current price.

ORCL has been the subject of several other research reports. Scotiabank reduced their price objective on shares of Oracle from $241.00 to $215.00 and set a "sector outperform" rating for the company in a research report on Wednesday. Citigroup reissued a "market outperform" rating on shares of Oracle in a research note on Friday. Morgan Stanley increased their target price on shares of Oracle from $207.00 to $210.00 and gave the stock an "equal weight" rating in a research note on Friday, September 4th. Jefferies Financial Group reduced their price target on shares of Oracle from $320.00 to $290.00 and set a "buy" rating for the company in a report on Wednesday, September 2nd. Finally, UBS Group reaffirmed an "outperform" rating on shares of Oracle in a research note on Friday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $255.92.

Oracle Stock Up 1.3%

Shares of Oracle stock opened at $154.98 on Friday. The stock's 50-day moving average is $140.88 and its 200 day moving average is $160.46. Oracle has a one year low of $114.50 and a one year high of $329.50. The firm has a market cap of $446.42 billion, a price-to-earnings ratio of 26.78, a PEG ratio of 1.20 and a beta of 1.74. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12.

Oracle (NYSE:ORCL - Get Free Report) last issued its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, topping analysts' consensus estimates of $1.74 by $0.18. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The business had revenue of $19.34 billion during the quarter, compared to the consensus estimate of $19.13 billion. During the same period in the previous year, the company posted $1.47 earnings per share. The firm's revenue for the quarter was up 29.6% on a year-over-year basis. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. Equities research analysts anticipate that Oracle will post 6.51 EPS for the current year.

Insider Activity at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the company's stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total value 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 position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Oracle

Hedge funds have recently added to or reduced their stakes in the stock. California State Teachers Retirement System raised its position in Oracle by 14,636.4% in the 2nd quarter. California State Teachers Retirement System now owns 382,756,945 shares of the enterprise software provider's stock valued at $56,093,030,000 after buying an additional 380,159,589 shares during the last quarter. State Street Corp boosted its holdings in Oracle by 4.4% during the 4th quarter. State Street Corp now owns 76,527,759 shares of the enterprise software provider's stock worth $14,916,026,000 after acquiring an additional 3,216,915 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Oracle by 1.8% in the 4th quarter. Geode Capital Management LLC now owns 37,734,944 shares of the enterprise software provider's stock worth $7,328,754,000 after acquiring an additional 665,374 shares in the last quarter. Capital Research Global Investors grew its stake in shares of Oracle by 29.3% in 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 acquiring an additional 6,826,299 shares in the last quarter. Finally, Morgan Stanley raised its holdings in shares of Oracle by 1.9% in the fourth quarter. Morgan Stanley now owns 27,125,099 shares of the enterprise software provider's stock valued at $5,286,953,000 after purchasing an additional 495,146 shares during the last quarter. Institutional investors and hedge funds own 42.44% of the company's stock.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Results exceeded expectations: Oracle reported adjusted earnings of $1.92 per share versus the $1.74 consensus estimate, while revenue increased 29.6% year over year to approximately $19.35 billion, ahead of forecasts. Oracle jumps after reporting revenue growth fueled by AI cloud demand
• Positive Sentiment: AI cloud growth was the key catalyst: Cloud infrastructure revenue surged 121% to about $7.4 billion, reinforcing the view that Oracle is benefiting from rising demand for AI computing capacity. The company’s remaining performance obligations also reached roughly $664 billion, providing significant future revenue visibility. Oracle shares rise as AI cloud backlog beats estimates
• Positive Sentiment: Guidance improved investor confidence: Oracle forecast fiscal 2027 adjusted EPS of $8.10, above the approximately $7.75 consensus, and issued second-quarter EPS guidance of $1.85-$1.93 versus expectations near $1.82. Analysts including Cantor Fitzgerald and William Blair maintained bullish ratings, while Cantor set a $284 price target.
• Positive Sentiment: AI spending appears to be producing tangible demand: Management maintained its fiscal 2027 capital-expenditure outlook of $90 billion-$95 billion, suggesting confidence that data-center investments will support continued cloud growth.
• Neutral Sentiment: Analyst views remain mixed: BMO Capital Markets lowered its price target from $220 to $195 but retained an “outperform” rating, reflecting continued upside potential alongside valuation and execution concerns.
• Neutral Sentiment: Oracle declared a quarterly dividend of $0.50 per share, payable October 23 to shareholders of record October 9. The dividend provides modest income support but is not the primary driver of the session’s trading.
• Negative Sentiment: Financing and execution risks remain: Oracle’s New Mexico data-center construction has been delayed by a gas-pipeline issue, while heavy AI investment continues to pressure free cash flow. Investors will watch whether the large backlog converts into revenue and cash quickly enough to justify the spending.

About Oracle

Oracle Corporation is a global enterprise technology company that develops and provides database software, cloud infrastructure, business applications and related technology services. Its offerings help organizations manage data, run applications, support business operations and build technology environments across on-premises, hybrid and cloud-based settings.

The company's products include Oracle Database, MySQL, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud applications for enterprise resource planning, financial management, human resources, supply chain management, customer experience and industry-specific operations.

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