Castellan Group Acquires New Shares in Oracle Corporation $ORCL

Key Points

• Castellan Group opened a new position in Oracle during Q1, buying 7,600 shares worth about $1.12 million, making ORCL its 28th-largest holding.
• Oracle reported better-than-expected quarterly results, with EPS of $2.11 versus $1.96 expected and revenue of $19.18 billion, up 20.6% year over year. The company also issued guidance for Q1 2027 and FY 2027.
• Wall Street remains broadly positive on Oracle, with a consensus “Moderate Buy” rating and an average price target of $268.27, even as recent commentary highlights concerns about heavy AI-related capital spending and high debt.

Castellan Group bought a new stake in Oracle Corporation (NYSE:ORCL - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 7,600 shares of the enterprise software provider's stock, valued at approximately $1,118,000. Oracle makes up approximately 0.2% of Castellan Group's investment portfolio, making the stock its 28th biggest holding.

Several other hedge funds also recently bought and sold shares of ORCL. SageGuard Financial Group LLC purchased a new stake in shares of Oracle during the 1st quarter worth about $347,000. North Star Investment Management Corp. grew its stake in shares of Oracle by 0.3% in the 1st quarter. North Star Investment Management Corp. now owns 93,252 shares of the enterprise software provider's stock valued at $13,718,000 after buying an additional 261 shares in the last quarter. Pinnacle Bancorp Inc. increased its holdings in Oracle by 12.8% in the first quarter. Pinnacle Bancorp Inc. now owns 2,693 shares of the enterprise software provider's stock worth $396,000 after buying an additional 306 shares during the last quarter. Apollon Financial LLC increased its holdings in Oracle by 19.4% in the first quarter. Apollon Financial LLC now owns 1,994 shares of the enterprise software provider's stock worth $293,000 after buying an additional 324 shares during the last quarter. Finally, Formidable Asset Management LLC raised its position in Oracle by 7.1% during the first quarter. Formidable Asset Management LLC now owns 14,590 shares of the enterprise software provider's stock valued at $2,146,000 after acquiring an additional 970 shares in the last quarter. 42.44% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Guggenheim reissued a "buy" rating and issued a $400.00 target price on shares of Oracle in a research report on Thursday, June 11th. Mizuho set a $320.00 price target on shares of Oracle in a report on Wednesday, June 3rd. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $284.00 price objective on shares of Oracle in a research note on Thursday, June 11th. Morgan Stanley reiterated a "mixed" rating on shares of Oracle in a report on Thursday, June 11th. Finally, Stephens reissued an "equal weight" rating and set a $164.00 target price on shares of Oracle in a research report on Thursday, June 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $268.27.

Oracle Trading Up 0.1%

Shares of ORCL stock opened at $148.68 on Monday. The firm has a market capitalization of $428.27 billion, a P/E ratio of 25.50, a price-to-earnings-growth ratio of 0.93 and a beta of 1.65. Oracle Corporation has a 1 year low of $134.57 and a 1 year high of $345.72. The firm's fifty day simple moving average is $189.53 and its 200 day simple moving average is $175.38. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 3.21.

Oracle (NYSE:ORCL - Get Free Report) last issued its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, beating analysts' consensus estimates of $1.96 by $0.15. The firm had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The business's revenue was up 20.6% on a year-over-year basis. During the same period in the prior year, the firm 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. As a group, sell-side analysts predict that Oracle Corporation will post 6.45 EPS for the current year.

Oracle Dividend Announcement

The company also recently declared 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. This represents a $2.00 annualized dividend and a yield of 1.3%. The ex-dividend date is Friday, July 10th. Oracle's payout ratio is currently 34.31%.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle Health and Theator announced an AI-powered surgical reporting partnership, adding another real-world use case for Oracle Cloud Infrastructure in healthcare. Oracle Health (ORCL), Theator Partner to Automate Surgical Reporting with AI
• Positive Sentiment: Several recent articles highlighted Oracle’s massive contract backlog and strong AI cloud demand, arguing the company has improved long-term revenue visibility despite near-term volatility. Oracle's Contract Backlog Swells: Is Long-Term Revenue Growth Secured?
• Positive Sentiment: Wall Street sentiment remains broadly constructive, with coverage pointing to dozens of buy ratings and meaningful upside from current levels. Oracle stock has worst week since 2001 dot-com bust as AI financing concerns escalate
• Neutral Sentiment: Oracle was also featured in commentary suggesting the recent sell-off may be overdone and more a valuation/mispricing issue than a fundamental break in the AI story. Oracle's Market Disconnect: The Truth Can Make You Rich
• Negative Sentiment: Investor concern is centered on Oracle’s aggressive AI spending: capital expenditures surged, free cash flow turned deeply negative, and debt is now high, raising questions about financing the buildout. Oracle stock has worst week since 2001 dot-com bust as AI financing concerns escalate
• Negative Sentiment: OpenAI IPO delay fears weighed on Oracle and other AI-related stocks, since Oracle is tied to the broader AI infrastructure trade. OpenAI May Push Back Highly-Awaited IPO to 2027, Slamming SoftBank and Oracle Shares
• Negative Sentiment: Oracle Vice Chairman Jeffrey Henley sold 400,000 shares in a pre-arranged 10b5-1 plan, a headline that can add to sentiment pressure even if the sale was scheduled. SEC filing for Jeffrey Henley stock sale

Insider Activity at Oracle

In other Oracle news, EVP Stuart Levey sold 15,000 shares of the firm'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 value of $2,642,850.00. Following the completion of the sale, the executive vice president owned 3,429 shares in the company, valued at approximately $604,155.51. This trade represents a 81.39% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction that occurred 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 sale, the insider directly owned 400,000 shares in the company, valued at $63,664,000. The trade was a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 40.90% of the company's stock.

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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