Arrowstreet Capital Limited Partnership Makes New Investment in Oracle Corporation $ORCL

Key Points

• Arrowstreet Capital purchased 370,229 Oracle shares worth approximately $54.5 million during the first quarter, while institutional investors collectively own 42.44% of the company.
• Oracle recently reported stronger-than-expected quarterly results, with EPS of $2.11 and revenue of $19.18 billion, up 20.6% year over year; it also maintains a $0.50 quarterly dividend.
• Oracle’s Pentagon cloud contract and AI infrastructure opportunities support its growth outlook, but the stock remains near its 52-week low and faces concerns over heavy leverage, data-center spending and execution risks.

Arrowstreet Capital Limited Partnership purchased a new position in shares of Oracle Corporation (NYSE:ORCL - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 370,229 shares of the enterprise software provider's stock, valued at approximately $54,464,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Dickmeyer Boyce Financial Management Inc. bought a new stake in Oracle in the first quarter worth $353,000. Gibbs Wealth Management lifted its position in shares of Oracle by 58.2% in the first quarter. Gibbs Wealth Management now owns 40,516 shares of the enterprise software provider's stock worth $5,960,000 after buying an additional 14,902 shares during the last quarter. Alamar Capital Management LLC acquired a new stake in shares of Oracle in the first quarter worth about $1,248,000. Davis R M Inc. boosted its stake in shares of Oracle by 27.6% during the 1st quarter. Davis R M Inc. now owns 25,780 shares of the enterprise software provider's stock worth $3,792,000 after acquiring an additional 5,580 shares in the last quarter. Finally, Cetera Investment Advisers boosted its stake in shares of Oracle by 7.4% during the 1st quarter. Cetera Investment Advisers now owns 787,215 shares of the enterprise software provider's stock worth $115,806,000 after acquiring an additional 54,003 shares in the last quarter. Institutional investors own 42.44% of the company's stock.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle won a Pentagon cloud and software contract with a $3.31 billion five-year base value and potential total value of nearly $7 billion over 10 years. The agreement strengthens Oracle’s position in government cloud computing and reinforces its AI-related growth strategy. A $7 Billion Reason to Buy Oracle Stock Now
• Positive Sentiment: Reports that Nvidia could provide roughly $250 billion in financing or support for an OpenAI data-center buildout are boosting expectations for Oracle, which could benefit from the project’s cloud and infrastructure requirements. Nvidia and OpenAI Data Center Push
• Positive Sentiment: Falling interest rates are supporting high-growth technology stocks, while Oracle’s upcoming earnings report is expected to show double-digit year-over-year EPS growth. Oracle previously exceeded quarterly EPS and revenue estimates, with revenue rising 20.6% year over year. Tech Stocks Gap Higher as Rates Drop
• Neutral Sentiment: Brokerages maintain an average “Moderate Buy” recommendation, but investors are focused on whether Oracle can convert its large AI and defense pipeline into sustainable cash flow and earnings growth. Oracle Receives Moderate Buy Recommendation
• Negative Sentiment: Despite the Pentagon award, Oracle shares recently fell to a 52-week low and remain down more than 60% from their prior peak. Investors appear concerned that contract wins may not offset spending demands, elevated leverage and execution risks. Oracle Stock Plunged to a 52-Week Low
• Negative Sentiment: Oracle’s debt-to-equity ratio is 3.21, and one major customer may face difficulty meeting its obligations. That raises concerns about liquidity, customer concentration and the cost of financing its aggressive data-center expansion. Oracle Stock Down: Buying Opportunity or Falling Knife

Oracle Price Performance

NYSE ORCL opened at $120.00 on Tuesday. The stock has a 50-day simple moving average of $168.98 and a 200 day simple moving average of $166.18. Oracle Corporation has a twelve month low of $114.75 and a twelve month high of $345.72. The stock has a market capitalization of $345.65 billion, a PE ratio of 20.58, a P/E/G ratio of 0.72 and a beta of 1.72. The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.12 and a current ratio of 1.12.

Oracle (NYSE:ORCL - Get Free Report) last released its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.96 by $0.15. The firm had revenue of $19.18 billion for the quarter, compared to analyst estimates of $19.10 billion. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The company's revenue was up 20.6% on a year-over-year basis. During the same quarter last year, the firm posted $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. Research analysts anticipate that Oracle Corporation will post 6.47 EPS for the current year.

Oracle Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were given a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 1.7%. The ex-dividend date was Friday, July 10th. Oracle's dividend payout ratio (DPR) is currently 34.31%.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Moffett Nathanson set a $325.00 price objective on Oracle in a research note on Thursday, June 11th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $284.00 target price on shares of Oracle in a research report on Thursday, June 11th. BMO Capital Markets increased their price target on Oracle from $200.00 to $220.00 and gave the company an "outperform" rating in a report on Thursday, June 11th. BTIG Research reissued a "buy" rating and issued a $400.00 price target on shares of Oracle in a research report on Friday, June 5th. Finally, Royal Bank Of Canada restated a "sector perform" rating and issued a $190.00 price objective on shares of Oracle in a research note on Thursday, June 11th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $265.03.

Insider Activity

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the business's stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the transaction, the insider owned 400,000 shares in the company, valued at approximately $63,664,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company's stock.

Oracle Company Profile

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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