Breakwater Capital Group Decreases Stock Position in Oracle Corporation $ORCL

Key Points

• Breakwater Capital Group cut its Oracle position by 13.5% in the second quarter, selling 4,332 shares and retaining 27,679 shares valued at approximately $4.06 million.
• Other major institutions, including Vanguard, State Street, Geode Capital and Capital Research Global Investors, increased their Oracle holdings; institutional investors collectively own 42.44% of the stock. Vice Chairman Jeffrey Henley separately sold 400,000 shares under a Rule 10b5-1 plan.
• Analysts maintain a generally positive view, with Oracle carrying a “Moderate Buy” consensus and an average price target of $263.97. The company exceeded quarterly earnings and revenue estimates, but concerns remain over heavy borrowing to fund AI infrastructure and potential pressure on returns.

Breakwater Capital Group lessened its holdings in Oracle Corporation (NYSE:ORCL - Free Report) by 13.5% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 27,679 shares of the enterprise software provider's stock after selling 4,332 shares during the quarter. Breakwater Capital Group's holdings in Oracle were worth $4,056,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Vanguard Group Inc. grew its position in Oracle by 3.5% during the 4th quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider's stock worth $34,070,674,000 after purchasing an additional 5,841,584 shares during the last quarter. State Street Corp increased its stake in Oracle by 4.4% during the 4th quarter. State Street Corp now owns 76,527,759 shares of the enterprise software provider's stock valued at $14,916,026,000 after purchasing an additional 3,216,915 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Oracle by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 37,734,944 shares of the enterprise software provider's stock worth $7,328,754,000 after buying an additional 665,374 shares during the last quarter. Capital Research Global Investors raised its holdings in shares of Oracle by 29.3% in the fourth 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 last quarter. Finally, Morgan Stanley lifted its stake in shares of Oracle by 1.9% during the fourth quarter. Morgan Stanley now owns 27,125,099 shares of the enterprise software provider's stock worth $5,286,953,000 after buying an additional 495,146 shares during the period. Hedge funds and other institutional investors own 42.44% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. Wedbush dropped their price objective on shares of Oracle from $275.00 to $240.00 and set an "outperform" rating on the stock in a report on Thursday, June 11th. DA Davidson raised their target price on Oracle from $200.00 to $225.00 and gave the stock a "buy" rating in a research note on Thursday, June 11th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $190.00 price target on shares of Oracle in a research report on Thursday, June 11th. Scotiabank reiterated an "overweight" rating on shares of Oracle in a research note on Thursday, June 11th. Finally, KeyCorp restated an "overweight" rating 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 assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $263.97.

Insider Buying and Selling

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the firm's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the sale, the insider directly owned 400,000 shares of the company's stock, valued at $63,664,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 company insiders.

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

Oracle Trading Up 2.4%

Shares of Oracle stock opened at $146.93 on Friday. The stock has a market cap of $423.23 billion, a PE ratio of 25.20, a price-to-earnings-growth ratio of 0.92 and a beta of 1.72. The firm has a fifty day moving average price of $158.22 and a 200 day moving average price of $162.61. Oracle Corporation has a 1 year low of $114.50 and a 1 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.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating the consensus estimate of $1.96 by $0.15. The company had revenue of $19.18 billion for the quarter, compared to analyst estimates of $19.10 billion. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The firm's revenue was up 20.6% on a year-over-year basis. During the same period in the prior year, the company earned $1.70 earnings per share. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. Equities research analysts predict that Oracle Corporation will post 6.47 earnings per share for the current year.

Oracle Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, July 24th. Stockholders 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 dividend yield of 1.4%. Oracle's dividend payout ratio is presently 34.31%.

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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