Dimensional Fund Advisors LP Boosts Holdings in Oracle Corporation $ORCL

Key Points

• Dimensional Fund Advisors LP increased its Oracle stake by 1.7% in the first quarter, ending with 8.59 million shares worth about $1.26 billion.
• Oracle reported a strong quarterly update, with EPS of $2.11 beating estimates and revenue of $19.18 billion topping expectations, while sales rose 20.6% year over year.
• The stock remains under pressure amid concerns about Oracle’s AI spending, debt load, and project delays, even as analysts still see upside and maintain a Moderate Buy consensus with a $268.27 average price target.

Dimensional Fund Advisors LP increased its position in Oracle Corporation (NYSE:ORCL - Free Report) by 1.7% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,586,492 shares of the enterprise software provider's stock after purchasing an additional 147,048 shares during the period. Dimensional Fund Advisors LP owned approximately 0.30% of Oracle worth $1,262,827,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. HFM Investment Advisors LLC raised its holdings in 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 buying an additional 96 shares during the last quarter. Basepoint Wealth LLC purchased a new stake in shares of Oracle during the fourth quarter valued at approximately $26,000. FSA Wealth Management LLC bought a new stake in shares of Oracle during the third quarter valued at approximately $28,000. Osbon Capital Management LLC bought a new stake in shares of Oracle during the fourth quarter valued at approximately $28,000. Finally, Joseph Group Capital Management purchased a new position in Oracle in the 4th quarter worth approximately $29,000. 42.44% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the business's 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 transaction, the insider directly owned 400,000 shares of the company's stock, 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 Securities & Exchange Commission, which is accessible 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.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Some analysts remain bullish, arguing Oracle’s huge cloud backlog could eventually translate into much stronger revenue and that the stock may be oversold after its steep decline. Oracle Stock Crash Erases $213 Billion from Billionaire Founder Larry Ellison’s Net Worth
• Positive Sentiment: Oracle’s database and multicloud AI businesses continue to show strong growth momentum, suggesting the long-term AI demand story is still intact. Can Oracle's Database Business Sustain Long-Term Margins?
• Neutral Sentiment: Commentary from Jim Cramer and other market writers added to the volatility, with some calling Oracle a cautionary tale while others argued the selloff may be overdone. Jim Cramer Says Oracle Is “Going Down” and Avoid Every Liquor Stock. Here’s What He’d Buy Instead
• Negative Sentiment: New Mexico blocked the pipeline for Oracle’s 2.5 GW data-center project, increasing the chance of delays and adding uncertainty to its AI infrastructure expansion. New Mexico Blocks Pipeline for Oracle’s (ORCL) 2.5 GW Data Center Project
• Negative Sentiment: Investors are worried Oracle’s AI spending spree is being financed with too much debt, pushing the company’s credit profile close to junk territory. Oracle’s (ORCL) AI Spending Spree Pushes Its Credit Rating Near Junk
• Negative Sentiment: Oracle’s stock has also been hit by broader articles emphasizing that the company is falling fast as markets question whether the AI growth story can justify the spending and financing risks. Oracle Stock Slides To 52-Week Low Amid AI Spending Fears

Oracle Stock Performance

Shares of ORCL opened at $126.48 on Monday. The business has a 50-day simple moving average of $177.30 and a two-hundred day simple moving average of $169.28. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 3.21. Oracle Corporation has a 52 week low of $121.50 and a 52 week high of $345.72. The stock has a market cap of $364.32 billion, a price-to-earnings ratio of 21.69, a PEG ratio of 0.79 and a beta of 1.72.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings data 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. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The firm had revenue of $19.18 billion for the quarter, compared to analysts' expectations of $19.10 billion. During the same period in the previous year, the firm earned $1.70 EPS. The business'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. On average, analysts expect that Oracle Corporation will post 6.47 EPS for the current year.

Oracle Dividend Announcement

The firm also recently announced 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 1.6%. The ex-dividend date of this dividend is Friday, July 10th. Oracle's dividend payout ratio (DPR) is 34.31%.

Analysts Set New Price Targets

ORCL has been the topic of several analyst reports. TD Cowen upped their price objective on Oracle from $250.00 to $300.00 and gave the company a "buy" rating in a research report on Monday, June 8th. Evercore reaffirmed an "outperform" rating and issued a $245.00 price objective on shares of Oracle in a report on Monday, June 8th. BTIG Research reiterated a "buy" rating and set a $400.00 price objective on shares of Oracle in a research report on Friday, June 5th. BMO Capital Markets increased their target price on Oracle from $200.00 to $220.00 and gave the company an "outperform" rating in a report on Thursday, June 11th. Finally, Moffett Nathanson set a $325.00 target price on Oracle in a research report on Thursday, June 11th. Two 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 given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $268.27.

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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