Bank of America Forecasts Strong Price Appreciation for Oracle (NYSE:ORCL) Stock

Key Points

• Bank of America raised its target price for Oracle stock from $220 to $295, suggesting a potential upside of 16.31% from its current price.
• Oracle's average rating among analysts is classified as a "Moderate Buy," with 23 analysts giving it a buy rating, while 9 rated it as hold and 3 as strong buy.
• Oracle reported $1.70 earnings per share for the last quarter, exceeding analysts' expectations, with a revenue of $15.90 billion, reflecting an 11.3% year-over-year increase.

Oracle (NYSE:ORCL - Get Free Report) had its target price boosted by Bank of America from $220.00 to $295.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has a "neutral" rating on the enterprise software provider's stock. Bank of America's target price would suggest a potential upside of 16.31% from the stock's current price.

Other research analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. lifted their price objective on shares of Oracle from $135.00 to $185.00 and gave the company a "neutral" rating in a report on Thursday, June 12th. UBS Group lifted their price objective on shares of Oracle from $250.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, July 17th. Piper Sandler raised shares of Oracle from a "neutral" rating to an "overweight" rating and lifted their price objective for the company from $190.00 to $270.00 in a report on Thursday, July 10th. Raymond James Financial restated a "strong-buy" rating on shares of Oracle in a research report on Wednesday, June 18th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $240.00 price target (up from $200.00) on shares of Oracle in a research report on Thursday, June 12th. Nine analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and three have issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $220.96.

Oracle Price Performance

Oracle stock traded up $1.10 during mid-day trading on Tuesday, hitting $253.63. The stock had a trading volume of 3,937,180 shares, compared to its average volume of 12,029,108. The firm has a market capitalization of $712.40 billion, a P/E ratio of 58.43, a P/E/G ratio of 3.65 and a beta of 1.43. Oracle has a one year low of $118.86 and a one year high of $260.87. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 4.07. The firm's 50 day moving average is $215.48 and its 200 day moving average is $175.60.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings data on Wednesday, June 11th. The enterprise software provider reported $1.70 earnings per share for the quarter, topping analysts' consensus estimates of $1.64 by $0.06. The company had revenue of $15.90 billion for the quarter, compared to analyst estimates of $15.58 billion. Oracle had a net margin of 21.68% and a return on equity of 87.34%. The firm's revenue for the quarter was up 11.3% on a year-over-year basis. During the same period in the prior year, the company posted $1.63 EPS. On average, sell-side analysts forecast that Oracle will post 5 earnings per share for the current fiscal year.

Insider Activity at Oracle

In other Oracle news, Director Naomi O. Seligman sold 3,303 shares of the business's stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $233.32, for a total value of $770,655.96. Following the transaction, the director owned 31,447 shares of the company's stock, valued at approximately $7,337,214.04. The trade was a 9.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Clayton M. Magouyrk sold 15,000 shares of the business's stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $214.10, for a total transaction of $3,211,500.00. Following the completion of the transaction, the insider owned 60,722 shares in the company, valued at approximately $13,000,580.20. The trade was a 19.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 428,303 shares of company stock valued at $82,480,056 over the last 90 days. Corporate insiders own 42.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. LGT Financial Advisors LLC bought a new stake in Oracle during the second quarter valued at about $33,000. Legend Financial Advisors Inc. acquired a new position in shares of Oracle in the 2nd quarter valued at about $34,000. HighMark Wealth Management LLC acquired a new position in Oracle in the 2nd quarter worth about $38,000. Sunbeam Capital Management LLC purchased a new stake in Oracle during the 4th quarter worth approximately $30,000. Finally, Moser Wealth Advisors LLC grew its position in shares of Oracle by 1,770.0% in the second quarter. Moser Wealth Advisors LLC now owns 187 shares of the enterprise software provider's stock valued at $41,000 after purchasing an additional 177 shares in the last quarter. Hedge funds and other institutional investors own 42.44% of the company's stock.

About Oracle

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing.

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