Oracle's (ORCL) "Buy" Rating Reiterated at TD Cowen

Key Points

• TD Cowen reiterated its “Buy” rating on Oracle and maintained a $240 price target, implying 71.11% upside from the stock’s previous close.
• Analyst sentiment remains favorable overall, with 36 Buy, nine Hold and one Sell rating; the consensus rating is “Moderate Buy” with an average price target of $248.41.
• Oracle shares fell 3.0% to $140.26 in mid-day trading, despite the company recently exceeding quarterly earnings and revenue expectations and reporting 29.6% year-over-year revenue growth.

Oracle (NYSE:ORCL - Get Free Report)'s stock had its "buy" rating restated by research analysts at TD Cowen in a note issued to investors on Thursday, Benzinga reports. They presently have a $240.00 price target on the enterprise software provider's stock. TD Cowen's price target would indicate a potential upside of 71.11% from the company's previous close.

A number of other analysts have also issued reports on the company. Weiss Ratings restated a "hold (c)" rating on shares of Oracle in a report on Friday, October 16th. Scotiabank reiterated a "sector outperform" rating and set a $205.00 price target on shares of Oracle in a report on Thursday. The Goldman Sachs Group dropped their price target on Oracle from $240.00 to $206.00 and set a "buy" rating on the stock in a research report on Friday, October 23rd. Robert W. Baird set a $215.00 price target on Oracle in a research report on Thursday. Finally, DZ Bank restated a "buy" rating on shares of Oracle in a research report on Thursday, September 17th. Thirty-six investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $248.41.

Oracle Trading Down 3.0%

ORCL stock traded down $4.28 during mid-day trading on Thursday, reaching $140.26. 16,397,873 shares of the stock traded hands, compared to its average volume of 29,570,760. The company has a current ratio of 1.17, a quick 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 $269.76. The company has a market cap of $424.11 billion, a P/E ratio of 21.94, a P/E/G ratio of 0.89 and a beta of 1.78. The stock's fifty day moving average is $142.13 and its 200-day moving average is $157.85.

Oracle (NYSE:ORCL - Get Free Report) last released its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, topping the consensus estimate of $1.74 by $0.18. Oracle had a net margin of 26.36% and a return on equity of 48.85%. The business had revenue of $19.34 billion for the quarter, compared to the consensus estimate of $19.13 billion. During the same period last year, the firm posted $1.47 earnings per share. The firm's quarterly revenue was up 29.6% compared to the same quarter last year. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. As a group, sell-side analysts expect that Oracle will post 6.73 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP Maria Smith sold 2,631 shares of the firm's stock in a transaction that occurred 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 transaction, the executive vice president owned 64,357 shares of the company's stock, valued at approximately $9,762,956.90. This trade represents a 3.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Stephen Rusckowski bought 25,000 shares of Oracle stock in a transaction on Tuesday, September 29th. The stock was acquired at an average price of $139.35 per share, with a total value of $3,483,750.00. Following the completion of the purchase, the director directly owned 25,390 shares of the company's stock, valued at approximately $3,538,096.50. The trade was a 6,410.26% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have sold 36,075 shares of company stock worth $5,342,123. Insiders own 38.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Oracle by 0.8% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 14,680,278 shares of the enterprise software provider's stock valued at $2,151,395,000 after acquiring an additional 123,294 shares during the period. Bank of New York Mellon Corp grew its holdings in Oracle by 3.0% in the first quarter. Bank of New York Mellon Corp now owns 13,251,059 shares of the enterprise software provider's stock worth $1,949,363,000 after purchasing an additional 384,984 shares during the period. Amundi grew its holdings in Oracle by 1.5% in the second quarter. Amundi now owns 9,878,184 shares of the enterprise software provider's stock worth $1,447,648,000 after purchasing an additional 144,087 shares during the period. Dimensional Fund Advisors LP grew its holdings in Oracle by 1.7% in the first quarter. Dimensional Fund Advisors LP now owns 8,586,492 shares of the enterprise software provider's stock worth $1,262,827,000 after purchasing an additional 147,048 shares during the period. Finally, First Eagle Investment Management LLC increased its stake in shares of Oracle by 1.0% during the second quarter. First Eagle Investment Management LLC now owns 8,516,878 shares of the enterprise software provider's stock valued at $1,248,148,000 after purchasing an additional 81,700 shares in the last quarter. 42.44% of the stock is owned by institutional investors.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s investor day provided a major catalyst: management forecast at least $225 billion in fiscal 2030 revenue, more than 35% annual growth from fiscal 2026, a 40%+ non-GAAP operating margin and $21+ in non-GAAP EPS. Oracle Investor Day 2026
• Positive Sentiment: The company said it expects positive free cash flow in the second half of fiscal 2028 and more than $30 billion of free cash flow in fiscal 2029, while limiting additional borrowing for its data-center strategy to $20 billion. That helped ease concerns about funding its AI expansion. Oracle AI spending and cash flow outlook
• Positive Sentiment: Oracle continues to broaden its AI ecosystem through expanded partnerships with OpenAI, Google, Nvidia, Snowflake and Cerebras. Google TPUs and additional AI hardware are expected to make Oracle Cloud Infrastructure more flexible for enterprise customers. Oracle expands AI and cloud lineup
• Positive Sentiment: Technical coverage describes a potential trend reversal: ORCL moved above its 20-day and 50-day moving averages after finding support, suggesting improving short-term demand. Piper Sandler also reaffirmed an overweight rating with a $225 price target. Oracle moves above 50-day average
• Neutral Sentiment: Oracle’s next earnings report is approaching, with analysts reportedly expecting a year-over-year EPS decline. Results and updated guidance will test whether the company’s ambitious long-term targets are credible. Oracle earnings preview
• Negative Sentiment: Investors remain concerned about Oracle’s heavy capital spending, negative free cash flow and reliance on external financing. Analysts have questioned whether additional billions may be needed before the AI build-out becomes self-funding, creating execution and balance-sheet risk.

Oracle Company Profile

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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