Avity Investment Management Inc. Buys 127,037 Shares of Oracle Corporation $ORCL

Key Points

• Avity Investment Management increased its Oracle stake by 231.8% in the second quarter, buying 127,037 additional shares and bringing its holdings to 181,835 shares valued at approximately $26.65 million.
• Oracle reported strong quarterly results, with revenue rising 20.6% year over year to $19.18 billion and EPS of $2.11, exceeding analyst expectations. Cloud infrastructure and AI demand remain key growth drivers.
• Despite a generally bullish analyst outlook and a $263.97 average price target, concerns persist over Oracle’s heavy borrowing to fund AI data-center expansion. UBS cut its target to $245, while an insider separately sold 400,000 shares under a pre-arranged trading plan.

Avity Investment Management Inc. raised its stake in Oracle Corporation (NYSE:ORCL - Free Report) by 231.8% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 181,835 shares of the enterprise software provider's stock after acquiring an additional 127,037 shares during the period. Oracle makes up about 1.7% of Avity Investment Management Inc.'s portfolio, making the stock its 25th biggest holding. Avity Investment Management Inc.'s holdings in Oracle were worth $26,648,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also recently modified their holdings of the company. HFM Investment Advisors LLC increased its position in shares of Oracle by 290.9% in the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider's stock worth $25,000 after purchasing an additional 96 shares during the period. Basepoint Wealth LLC bought a new stake in Oracle during the fourth quarter worth about $26,000. FSA Wealth Management LLC acquired a new stake in Oracle during the third quarter worth about $28,000. Osbon Capital Management LLC acquired a new stake in Oracle during the fourth quarter worth about $28,000. Finally, Joseph Group Capital Management bought a new position in Oracle in the 4th quarter valued at about $29,000. 42.44% of the stock is currently owned by institutional investors.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s cloud infrastructure and AI businesses continue to attract strong demand, supported by a record backlog and optimism that the company can sustain rapid growth. Recent earnings also showed revenue increasing 20.6% year over year, with earnings and sales exceeding analyst expectations. Oracle Surges: What's Driving the Sudden Rally
• Positive Sentiment: Some analysts remain bullish despite Oracle’s recent selloff. Wall Street’s long-term outlook reflects expectations that cloud ERP, database software and AI infrastructure could support substantial upside if Oracle converts its backlog into profitable revenue. Oracle: Cloud ERP And Oracle Database Software Driving Growth
• Neutral Sentiment: UBS lowered its Oracle price target to $245 from $285 but retained a Buy rating. The firm cited risks involving AI infrastructure spending, returns on invested capital, credit markets and Oracle’s exposure to OpenAI, suggesting analysts see meaningful long-term potential but greater execution risk. Oracle price target lowered by UBS amid AI spending concerns
• Negative Sentiment: Investors remain concerned that Oracle is funding its AI data-center buildout with substantial borrowing. Warnings about weaker returns, credit-rating pressure and higher financing costs could weigh on future margins and shareholder returns. Borrowing to the Brink: How Oracle’s AI Expansion Put Its Credit Rating on Life Support
• Negative Sentiment: Investor Michael Burry reportedly reopened a bearish Oracle position, arguing that AI-related technology stocks and data-center spending may be overvalued. The reports are contradictory about whether he fully exited or re-entered the trade, but the publicity reinforces near-term skepticism surrounding ORCL. Michael Burry says he's shorting AI stars Oracle and Nebius

Insider Buying and Selling at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total value of $63,664,000.00. Following the completion of the sale, the insider directly owned 400,000 shares in the company, valued at $63,664,000. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. TD Cowen upped their price target on shares of Oracle from $250.00 to $300.00 and gave the stock a "buy" rating in a report on Monday, June 8th. Weiss Ratings cut shares of Oracle from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, July 20th. Wedbush lowered their price objective on shares of Oracle from $275.00 to $240.00 and set an "outperform" rating for the company in a research report on Thursday, June 11th. Barclays upped their target price on Oracle from $240.00 to $250.00 and gave the stock an "overweight" rating in a research note on Thursday, June 11th. Finally, Sanford C. Bernstein raised their target price on Oracle from $319.00 to $325.00 and gave the company an "outperform" rating in a report on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $263.97.

Oracle Trading Up 2.4%

Shares of ORCL stock opened at $146.93 on Friday. The firm has a market capitalization of $423.23 billion, a P/E ratio of 25.20, a P/E/G ratio of 0.92 and a beta of 1.72. Oracle Corporation has a twelve month low of $114.50 and a twelve month high of $345.72. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 3.21. The stock's fifty day simple moving average is $158.22 and its 200 day simple moving average is $162.61.

Oracle (NYSE:ORCL - Get Free Report) last issued its quarterly earnings data 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. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The business had revenue of $19.18 billion during the quarter, compared to analyst estimates of $19.10 billion. During the same quarter last year, the business earned $1.70 EPS. The firm's quarterly revenue was up 20.6% on a year-over-year basis. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, sell-side analysts predict that Oracle Corporation will post 6.47 EPS for the current fiscal year.

Oracle Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were paid a $0.50 dividend. The ex-dividend date of this dividend was Friday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. Oracle's payout ratio is currently 34.31%.

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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