Oracle (NYSE:ORCL) Raised to Strong-Buy at Melius Research

Key Points

• Melius Research upgraded Oracle from “hold” to “strong-buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $248.41.
• Oracle shares opened at $130.50, down 6.5%, and remain well below their 52-week high of $265.81. The company recently beat quarterly expectations, reporting $1.92 in EPS versus the $1.74 consensus and $19.34 billion in revenue.
• Insiders sold 36,075 shares worth approximately $5.34 million over the past three months, including sales by the CEO and an executive vice president.

Oracle (NYSE:ORCL - Get Free Report) was upgraded by research analysts at Melius Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Thursday, Zacks reports.

Other analysts also recently issued research reports about the stock. BMO Capital Markets reduced their price target on shares of Oracle from $220.00 to $195.00 and set an "outperform" rating for the company in a research report on Friday, September 11th. CLSA initiated coverage on shares of Oracle in a research report on Monday, July 20th. They set a "hold" rating and a $145.00 price objective on the stock. Citigroup reissued a "market outperform" rating on shares of Oracle in a research report on Thursday. Oppenheimer restated an "outperform" rating and issued a $275.00 price objective on shares of Oracle in a research note on Thursday. Finally, Citizens Jmp reaffirmed a "market outperform" rating and issued a $285.00 target price on shares of Oracle in a report on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $248.41.

Oracle Trading Down 6.5%

ORCL opened at $130.50 on Thursday. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 1.89. Oracle has a 52 week low of $114.50 and a 52 week high of $265.81. The business's 50 day moving average is $141.81 and its two-hundred day moving average is $157.19. The firm has a market cap of $394.60 billion, a price-to-earnings ratio of 20.45, a price-to-earnings-growth ratio of 0.99 and a beta of 1.78.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, beating the consensus estimate of $1.74 by $0.18. The business had revenue of $19.34 billion during 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 was up 29.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.47 earnings per share. 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, research analysts predict that Oracle will post 6.72 EPS for the current year.

Insider Buying and Selling

In other Oracle news, EVP Maria Smith sold 2,631 shares of the company's stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total transaction of $399,122.70. Following the completion of the transaction, the executive vice president owned 64,357 shares in the company, valued at approximately $9,762,956.90. This represents a 3.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Michael D. Sicilia sold 22,562 shares of the company's stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $151.59, for a total transaction of $3,420,173.58. Following the transaction, the chief executive officer owned 182,929 shares of the company's stock, valued at approximately $27,730,207.11. The trade was a 10.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 36,075 shares of company stock valued at $5,342,123 over the last three months. 38.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in ORCL. Sherman Asset Management Inc. increased its position in shares of Oracle by 5.5% in the 1st quarter. Sherman Asset Management Inc. now owns 1,054 shares of the enterprise software provider's stock valued at $155,000 after purchasing an additional 55 shares during the last quarter. Gould Asset Management LLC CA raised its holdings in shares of Oracle by 2.0% in the 1st quarter. Gould Asset Management LLC CA now owns 3,172 shares of the enterprise software provider's stock valued at $467,000 after purchasing an additional 62 shares in the last quarter. One Charles Private Wealth Services LLC lifted its position in shares of Oracle by 1.6% during the 1st quarter. One Charles Private Wealth Services LLC now owns 3,859 shares of the enterprise software provider's stock worth $568,000 after purchasing an additional 62 shares during the last quarter. Main Street Group LTD lifted its position in shares of Oracle by 3.9% during the 1st quarter. Main Street Group LTD now owns 1,662 shares of the enterprise software provider's stock worth $245,000 after purchasing an additional 63 shares during the last quarter. Finally, Capstone Financial Advisors Inc. grew its stake in shares of Oracle by 3.6% during the second quarter. Capstone Financial Advisors Inc. now owns 1,809 shares of the enterprise software provider's stock worth $265,000 after purchasing an additional 63 shares in the last quarter. 42.44% of the stock is currently owned by institutional investors and hedge funds.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s investor-day outlook remains the main bullish catalyst. Management is targeting at least $225 billion in fiscal 2030 revenue, approximately $21 in fiscal 2030 EPS, and $30 billion in free cash flow by fiscal 2029. The company also reported exceptionally strong AI bookings and cloud backlog growth, suggesting demand for its AI infrastructure remains robust. Oracle Stock Forecast – Analysts React to Strong FY30 Outlook
• Positive Sentiment: Oracle pledged to limit additional capital-market funding to approximately $20 billion through fiscal 2030, addressing concerns that its data-center expansion could require unrestrained borrowing and share issuance. Analysts including Bank of America, TD Cowen, and Piper Sandler have maintained bullish ratings and substantial price targets. Oracle Analyst Day Eases Funding Concerns
• Neutral Sentiment: Fiscal 2027 guidance calls for $8.10 EPS, ahead of the $7.86 consensus, but the $90 billion revenue forecast is slightly below the $90.4 billion analyst estimate. This leaves investors focused on whether AI bookings convert into reported revenue and cash flow over the next two quarters. Oracle Just Told Investors What Many Already Knew
• Negative Sentiment: Oracle’s AI expansion has produced deeply negative free cash flow and required roughly $48 billion of debt and equity funding in fiscal 2026. Investors remain skeptical that the projected cash-flow turnaround will arrive quickly enough, particularly given Oracle’s debt-to-equity ratio of 1.89. Oracle Caps New Capital Raising
• Negative Sentiment: Broader technology weakness and concerns about lower-than-expected big-tech capital spending have pressured AI infrastructure stocks. Microsoft CEO Satya Nadella’s criticism of businesses dependent on leasing AI capacity to a small number of customers also raised questions about Oracle’s customer concentration and infrastructure economics. Satya Nadella Criticizes AI Capacity Rental Models

About Oracle

Oracle Corporation NYSE: ORCL is a global technology company that develops enterprise software, cloud infrastructure and database technologies. Its products help organizations store, manage, analyze and secure data, while supporting business operations across industries and geographies.

The company's offerings include Oracle Database, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud-based applications. These applications serve functions such as enterprise resource planning, financial management, human resources, supply-chain management, customer experience and industry-specific operations.

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