Bridgeway Capital Management LLC Lowers Holdings in Oracle Corporation $ORCL

Key Points

• Bridgeway Capital Management cut its Oracle stake by 5.9% in the fourth quarter, selling 7,804 shares and ending with 124,979 shares valued at about $24.36 million.
• Oracle’s latest quarterly results were solid, with EPS of $2.11 and revenue of $19.18 billion, both above analyst expectations. Revenue rose 20.6% year over year, and the company issued upbeat forward guidance.
• Sentiment around Oracle remains mixed: analysts have mostly Buy or equivalent ratings, but concerns persist about cloud execution and leverage after reports that Microsoft walked away from a potential cloud deal with Oracle.

Bridgeway Capital Management LLC trimmed its holdings in Oracle Corporation (NYSE:ORCL - Free Report) by 5.9% in the 4th quarter, according to its most recent filing with the SEC. The institutional investor owned 124,979 shares of the enterprise software provider's stock after selling 7,804 shares during the quarter. Bridgeway Capital Management LLC's holdings in Oracle were worth $24,360,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. HFM Investment Advisors LLC lifted its position in Oracle by 290.9% during the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider's stock valued at $25,000 after purchasing an additional 96 shares during the period. Basepoint Wealth LLC purchased a new stake in Oracle during the 4th quarter valued at $26,000. FSA Wealth Management LLC purchased a new stake in Oracle during the 3rd quarter valued at $28,000. Osbon Capital Management LLC purchased a new stake in Oracle during the 4th quarter valued at $28,000. Finally, Joseph Group Capital Management purchased a new stake in Oracle during the 4th quarter valued at $29,000. 42.44% of the stock is currently owned by institutional investors.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle is still drawing support from its strong quarterly results and upbeat analyst reaction after reporting a double beat on earnings and revenue, reinforcing the view that cloud and AI demand remain solid. The Stock Market Is Underestimating the Massive Growth Potential of This Artificial Intelligence (AI) Giant That Could Easily Become a $1 Trillion Company
• Positive Sentiment: Oracle announced new AI capabilities in OPERA Cloud and a new hybrid streaming architecture on OCI, highlighting continued product momentum and broader adoption of Oracle Cloud Infrastructure. New AI Capabilities in Oracle OPERA Cloud Supercharge Hotel Operations
• Positive Sentiment: Several articles pointed to Oracle as a trending or potentially undervalued AI/cloud name, with commentary that Wall Street still sees meaningful upside if Oracle can convert its large backlog into revenue. Oracle (ORCL) Has AI Demand. Now It Needs to Prove It Can Scale
• Neutral Sentiment: Oracle received additional visibility from business updates such as Lightpath using Oracle Cloud Scale Billing and Oracle’s executive speaking slot at an AI infrastructure panel, which may help sentiment but do not materially change fundamentals. Lightpath Monetizes Digital Services and Powers AI-Driven Innovation with Oracle
• Negative Sentiment: Investor caution remains high after reports that Microsoft walked away from a potential multibillion-dollar Oracle cloud capacity deal, raising concerns about the pace and quality of Oracle’s cloud expansion. Microsoft's cloud infrastructure talks with Oracle collapse, Business Insider reports
• Negative Sentiment: Bearish commentary also focused on Oracle’s leverage and the risks of its hyperscaler strategy, with some analysts arguing the market is underestimating debt and execution challenges. Oracle's Massive Debt Problem

Analyst Ratings Changes

A number of brokerages have weighed in on ORCL. Morgan Stanley reiterated a "mixed" rating on shares of Oracle in a research note on Thursday, June 11th. Oppenheimer boosted their target price on shares of Oracle from $235.00 to $275.00 and gave the company an "outperform" rating in a research note on Monday, June 8th. Arete Research set a $255.00 target price on shares of Oracle and gave the company a "buy" rating in a research note on Thursday, May 7th. DA Davidson boosted their price target on Oracle from $200.00 to $225.00 and gave the company a "buy" rating in a research note on Thursday, June 11th. Finally, Barclays boosted their price target on Oracle from $240.00 to $250.00 and gave the company an "overweight" rating in a research note on Thursday, June 11th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $268.27.

Oracle Trading Down 2.7%

Oracle stock opened at $183.31 on Thursday. The business has a 50-day simple moving average of $187.19 and a two-hundred day simple moving average of $177.46. The company has a market cap of $527.20 billion, a P/E ratio of 31.44, a P/E/G ratio of 1.18 and a beta of 1.65. Oracle Corporation has a 52-week low of $134.57 and a 52-week high of $345.72. The company has a quick ratio of 1.35, a current ratio of 1.12 and a debt-to-equity ratio of 2.84.

Oracle (NYSE:ORCL - Get Free Report) last released its quarterly 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 business had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. Oracle had a return on equity of 56.43% and a net margin of 25.37%.The business's quarterly revenue was up 20.6% compared to the same quarter last year. During the same period in the previous year, the company 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. Analysts predict that Oracle Corporation will post 6.45 EPS for the current year.

Oracle Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be paid a dividend of $0.50 per share. The ex-dividend date is Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.1%. Oracle's payout ratio is 34.31%.

Insider Activity

In related news, EVP Stuart Levey sold 15,000 shares of the business's stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $176.19, for a total transaction of $2,642,850.00. Following the completion of the transaction, the executive vice president directly owned 3,429 shares in the company, valued at approximately $604,155.51. The trade was a 81.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company 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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