1ST Source Bank Takes $5.90 Million Position in Oracle Corporation $ORCL

Key Points

• 1ST Source Bank acquired a new $5.90 million Oracle stake, purchasing 40,242 shares during the second quarter. Institutional investors and hedge funds own approximately 42.44% of Oracle’s stock.
• Oracle reported stronger-than-expected quarterly results, including 20.6% year-over-year revenue growth to $19.18 billion and EPS of $2.11 versus the $1.96 consensus estimate.
• Oracle’s cloud and AI expansion is attracting strategic partnerships with AWS and Quantinuum, but concerns over heavy infrastructure spending, rising leverage, potential layoffs and credit risk are weighing on investor sentiment.

1ST Source Bank bought a new stake in shares of Oracle Corporation (NYSE:ORCL - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 40,242 shares of the enterprise software provider's stock, valued at approximately $5,897,000.

A number of other hedge funds have also modified their holdings of the company. Norges Bank bought a new position in shares of Oracle during the 4th quarter valued at about $4,336,031,000. Bank of New York Mellon Corp acquired a new stake in Oracle during the 2nd quarter worth approximately $1,911,930,000. Capital Research Global Investors raised its holdings in Oracle by 29.3% during 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 buying an additional 6,826,299 shares during the period. Vanguard Group Inc. lifted its stake in Oracle by 3.5% in the fourth quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider's stock valued at $34,070,674,000 after buying an additional 5,841,584 shares in the last quarter. Finally, Cardano Risk Management B.V. lifted its stake in Oracle by 882.3% in the fourth quarter. Cardano Risk Management B.V. now owns 4,991,010 shares of the enterprise software provider's stock valued at $972,798,000 after buying an additional 4,482,934 shares in the last quarter. 42.44% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle and Amazon Web Services expanded their long-term collaboration, with Oracle AI Database@AWS now available in 22 AWS regions. The offering includes Exadata-class performance and pay-per-use pricing, potentially accelerating enterprise cloud migrations and AI-related revenue. Oracle and AWS Deepen Strategic Collaboration
• Positive Sentiment: A multiyear partnership with Quantinuum will bring quantum-computing capabilities to Oracle Cloud Infrastructure. Although an early-stage opportunity, the deal broadens Oracle’s AI and cloud growth narrative and helped support investor interest. Quantinuum’s Cloud Deal With Oracle
• Neutral Sentiment: Oracle’s latest quarterly results exceeded expectations, with revenue rising 20.6% year over year and earnings surpassing consensus estimates. However, investors remain focused on whether growth can offset the capital requirements of Oracle’s AI infrastructure buildout.
• Neutral Sentiment: Technical coverage has identified the 50-day moving average as an important support or resistance level. This may encourage short-term trading activity but does not materially change the company’s fundamental outlook. Oracle Crossed Above the 50-Day Moving Average
• Negative Sentiment: Reports that Oracle is considering additional layoffs have heightened concerns about cash flow and operating pressure as the company funds aggressive AI data-center expansion. The spending is also increasing leverage and debt-servicing risk. Oracle Weighs Another Round of Job Cuts
• Negative Sentiment: Credit-downgrade concerns, higher bond-insurance costs and Oracle’s substantial debt burden are fueling fears that AI investment could strain its balance sheet. These concerns are the primary reason behind the recent sell-off. Oracle Junk Bond Fears and Debt Surge
• Negative Sentiment: Investor Michael Burry reportedly increased his short position in Oracle, arguing that excess AI-computing capacity could emerge by 2028. The high-profile bearish call adds pressure to a stock already facing skepticism about AI valuations and spending returns. Michael Burry Doubles Down on Oracle Shorts

Oracle Trading Down 0.1%

Shares of NYSE:ORCL opened at $150.32 on Monday. The company's 50-day moving average price is $149.89 and its two-hundred day moving average price is $161.46. Oracle Corporation has a one year low of $114.50 and a one year high of $345.72. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12. The stock has a market capitalization of $432.99 billion, a PE ratio of 25.78, a price-to-earnings-growth ratio of 0.94 and a beta of 1.72.

Oracle (NYSE:ORCL - Get Free Report) last announced its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, beating the consensus estimate of $1.96 by $0.15. The company had revenue of $19.18 billion during the quarter, compared to analysts' expectations of $19.10 billion. Oracle had a return on equity of 58.62% and a net margin of 25.37%.Oracle's revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter last year, the company earned $1.70 EPS. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. On average, equities analysts forecast that Oracle Corporation will post 6.47 EPS for the current fiscal year.

Oracle Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were paid a $0.50 dividend. The ex-dividend date was Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a yield of 1.3%. Oracle's dividend payout ratio (DPR) is currently 34.31%.

Analysts Set New Price Targets

ORCL has been the subject of several research reports. Moffett Nathanson set a $325.00 price objective on shares of Oracle in a research report on Thursday, June 11th. Guggenheim reaffirmed a "buy" rating on shares of Oracle in a research report on Thursday, July 23rd. Barclays upped their target price on shares of Oracle from $240.00 to $250.00 and gave the stock an "overweight" rating in a research note on Thursday, June 11th. Stephens reissued an "equal weight" rating and issued a $164.00 price target on shares of Oracle in a research note on Thursday, June 11th. Finally, CLSA assumed coverage on Oracle in a report on Monday, July 20th. They issued a "hold" rating and a $145.00 price target on the stock. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $263.97.

Insider Buying and Selling

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle 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 owned 400,000 shares of the company's stock, valued at $63,664,000. This trade represents a 50.00% decrease in their position. The sale 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 corporate insiders.

About Oracle

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle's product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.

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