Jennison Associates LLC Sells 2,479,269 Shares of Oracle Corporation $ORCL

Key Points

• Jennison Associates LLC cut its Oracle position by 26.3% in the first quarter, selling 2.48 million shares and leaving it with 6.94 million shares valued at about $1.02 billion.
• Oracle continues to draw a mixed but generally positive Wall Street outlook, with analysts setting a consensus target price of $268.27 and a “Moderate Buy” rating, even as some firms adjusted their individual targets.
• The company reported strong recent earnings, beating EPS and revenue estimates, but its stock has faced pressure from concerns about heavy AI spending, debt levels, and project delays tied to its data-center expansion.

Jennison Associates LLC trimmed its position in shares of Oracle Corporation (NYSE:ORCL - Free Report) by 26.3% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 6,935,065 shares of the enterprise software provider's stock after selling 2,479,269 shares during the quarter. Jennison Associates LLC owned approximately 0.24% of Oracle worth $1,020,217,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in ORCL. McAlvany Wealth Management LLC acquired a new position in shares of Oracle during the first quarter worth $11,661,000. Annis Gardner Whiting Capital Advisors LLC increased its holdings in Oracle by 12.0% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 13,283 shares of the enterprise software provider's stock valued at $1,954,000 after purchasing an additional 1,424 shares during the period. GatePass Capital LLC raised its position in Oracle by 100.7% during the 1st quarter. GatePass Capital LLC now owns 2,621 shares of the enterprise software provider's stock worth $386,000 after purchasing an additional 1,315 shares during the last quarter. German American Bancorp Inc. raised its position in Oracle by 1.8% during the 1st quarter. German American Bancorp Inc. now owns 87,502 shares of the enterprise software provider's stock worth $12,872,000 after purchasing an additional 1,557 shares during the last quarter. Finally, IMA Advisory Services Inc. lifted its holdings in Oracle by 811.8% during the 1st quarter. IMA Advisory Services Inc. now owns 11,361 shares of the enterprise software provider's stock worth $1,671,000 after buying an additional 10,115 shares during the period. 42.44% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

ORCL has been the topic of a number of analyst reports. DA Davidson upped their price target on Oracle from $200.00 to $225.00 and gave the company a "buy" rating in a research report on Thursday, June 11th. Barclays raised their price objective on Oracle from $240.00 to $250.00 and gave the stock an "overweight" rating in a research report on Thursday, June 11th. Wedbush reduced their target price on Oracle from $275.00 to $240.00 and set an "outperform" rating on the stock in a report on Thursday, June 11th. Evercore reiterated an "outperform" rating and issued a $245.00 target price on shares of Oracle in a report on Monday, June 8th. Finally, Bank of America raised their price target on shares of Oracle from $200.00 to $240.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Oracle presently has a consensus rating of "Moderate Buy" and a consensus target price of $268.27.

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

ORCL stock opened at $126.48 on Friday. The firm has a market cap of $364.32 billion, a PE ratio of 21.69, a price-to-earnings-growth ratio of 0.79 and a beta of 1.72. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 3.21. The stock has a 50-day moving average price of $177.30 and a 200-day moving average price of $169.46. Oracle Corporation has a 1-year low of $121.50 and a 1-year high of $345.72.

Oracle (NYSE:ORCL - Get Free Report) last announced its 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. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The company had revenue of $19.18 billion for the quarter, compared to analyst estimates of $19.10 billion. During the same quarter in the prior year, the company earned $1.70 EPS. The firm's revenue for the quarter was up 20.6% compared to the same quarter last year. 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, equities research analysts expect that Oracle Corporation will post 6.47 earnings per share for the current year.

Oracle Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 1.6%. Oracle's payout ratio is 34.31%.

Insider Activity

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction that occurred on 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 transaction, the insider directly owned 400,000 shares in the company, valued at approximately $63,664,000. This represents a 50.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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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