Oracle Corporation (NYSE:ORCL) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Oracle, with 30 buy ratings, two strong buys, eight holds and one sell among 41 firms. The average 12-month price target is $252.58, well above the reported $144.48 share price.
• Oracle reported quarterly adjusted EPS of $1.92 versus the $1.74 consensus, while revenue rose 29.6% year over year to $19.34 billion. Cloud revenue and AI demand were highlighted as major growth drivers.
• Despite the earnings beat, Oracle shares were down 3.9%, with investors focused on heavy AI and data-center spending, rising leverage, cash burn and the time needed for those investments to generate free cash flow. The company also announced a quarterly dividend of $0.50 per share, yielding about 1.4% annually.

Oracle Corporation (NYSE:ORCL - Get Free Report) has been given an average rating of "Moderate Buy" by the forty-one research firms that are presently covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, eight have assigned a hold recommendation, thirty have given a buy recommendation and two have issued a strong buy recommendation on the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $252.5789.

A number of analysts recently commented on ORCL shares. Scotiabank dropped their target price on shares of Oracle from $241.00 to $215.00 and set a "sector outperform" rating on the stock in a report on Wednesday, September 9th. Morgan Stanley lifted their price target on shares of Oracle from $207.00 to $210.00 and gave the stock an "equal weight" rating in a research report on Friday, September 4th. Evercore reaffirmed an "outperform" rating and issued a $245.00 price target on shares of Oracle in a report on Monday, June 8th. KeyCorp set a $285.00 price objective on Oracle in a research note on Friday. Finally, BTIG Research reaffirmed a "buy" rating and set a $400.00 target price on shares of Oracle in a report on Friday, June 5th.

Insider Buying and Selling

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of the firm'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 completion of the transaction, the insider directly owned 400,000 shares in the company, valued at $63,664,000. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 40.90% of the company's stock.

Institutional Investors Weigh In On Oracle

A number of large investors have recently made changes to their positions in the company. Bullseye Investment Management LLC purchased a new position in shares of Oracle during the second quarter valued at $1,676,000. Bouchey Financial Group Ltd. purchased a new position in Oracle during the 2nd quarter valued at about $229,000. Capstone Financial Advisors Inc. increased its holdings in shares of Oracle by 3.6% in the 2nd quarter. Capstone Financial Advisors Inc. now owns 1,809 shares of the enterprise software provider's stock valued at $265,000 after purchasing an additional 63 shares during the period. Van Hulzen Asset Management LLC lifted its position in shares of Oracle by 0.7% in the second quarter. Van Hulzen Asset Management LLC now owns 11,815 shares of the enterprise software provider's stock worth $1,731,000 after purchasing an additional 81 shares in the last quarter. Finally, MCF Advisors LLC lifted its position in shares of Oracle by 3.4% in the second quarter. MCF Advisors LLC now owns 20,411 shares of the enterprise software provider's stock worth $2,991,000 after purchasing an additional 677 shares in the last quarter. Institutional investors and hedge funds own 42.44% of the company's stock.

Oracle Trading Down 3.9%

Shares of ORCL stock opened at $144.48 on Tuesday. The stock has a 50-day simple moving average of $141.09 and a 200 day simple moving average of $160.51. The stock has a market capitalization of $416.18 billion, a P/E ratio of 22.65, a P/E/G ratio of 1.10 and a beta of 1.74. Oracle has a fifty-two week low of $114.50 and a fifty-two week high of $329.50. The company has a quick ratio of 1.12, a current ratio of 1.17 and a debt-to-equity ratio of 1.75.

Oracle (NYSE:ORCL - Get Free Report) 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. Oracle had a net margin of 26.36% and a return on equity of 47.43%. The firm had revenue of $19.34 billion for the quarter, compared to analysts' expectations of $19.13 billion. During the same period in the previous year, the business earned $1.47 earnings per share. Oracle's revenue for the quarter 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. On average, sell-side analysts expect that Oracle will post 6.6 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 9th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.00 dividend on an annualized basis and a yield of 1.4%. Oracle's dividend payout ratio is currently 31.35%.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle reported revenue of approximately $19.3 billion, up 30% year over year, while adjusted earnings per share of $1.92 exceeded the $1.74 analyst consensus. Cloud revenue rose 62% to $11.6 billion, and strong AI demand contributed to a large remaining performance obligation backlog. Oracle Has the Backlog. Wall Street Wants the Cash
• Positive Sentiment: Oracle Health launched its Clinical AI Agent for U.S. hospitals, adding a new commercial application for its AI technology and potentially supporting long-term healthcare software growth. Oracle Health Clinical AI Agent
• Positive Sentiment: Larry Ellison canceled a planned Rule 10b5-1 sale of up to 50 million ORCL shares, valued at roughly $7.5 billion. No shares were sold, removing a potential source of selling pressure. Analysts including Argus and Barclays remain constructive, with price targets well above the current trading level. Ellison Abandons Planned Stock Sale
• Neutral Sentiment: The canceled insider sale is not a company buyback or fresh investment; therefore, its impact is mainly the removal of possible supply rather than evidence of improved cash flow or corporate capital allocation. Oracle Falls Despite Ellison Scrapping Sale
• Negative Sentiment: Oracle reportedly began another round of layoffs while spending heavily on data centers and AI infrastructure. Higher-than-expected restructuring costs are raising concerns that management is cutting jobs to help fund an increasingly debt-heavy expansion. Oracle Begins a New Round of Layoffs
• Negative Sentiment: Investors remain worried about Oracle’s planned capital expenditures, cash burn, leverage and the time required for AI spending to translate into free cash flow. Comparisons with NVIDIA also highlight Oracle’s lower returns and higher leverage. Why Is Oracle Stock Falling?

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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