Kodai Capital Management LP Takes Position in Oracle Corporation $ORCL

Key Points

• Kodai Capital Management LP has initiated a new position in Oracle Corporation by acquiring 306,356 shares worth approximately $42.8 million, making Oracle about 1.7% of their investment portfolio.
• Several institutional investors, including Nuveen LLC and Mitsubishi UFJ Asset Management, have also significantly increased their stakes in Oracle during the first quarter.
• Research analysts have given Oracle a positive outlook, with multiple firms raising their price targets, reflecting a consensus average target price of $227.04 for the stock.

Kodai Capital Management LP purchased a new position in shares of Oracle Corporation (NYSE:ORCL - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 306,356 shares of the enterprise software provider's stock, valued at approximately $42,832,000. Oracle accounts for about 1.7% of Kodai Capital Management LP's portfolio, making the stock its 14th biggest holding.

Other hedge funds have also bought and sold shares of the company. Sunbeam Capital Management LLC bought a new position in Oracle during the fourth quarter worth about $30,000. Redmont Wealth Advisors LLC bought a new position in Oracle during the first quarter worth about $27,000. Inlight Wealth Management LLC bought a new position in Oracle during the first quarter worth about $28,000. Iron Horse Wealth Management LLC increased its position in Oracle by 284.9% during the first quarter. Iron Horse Wealth Management LLC now owns 204 shares of the enterprise software provider's stock worth $29,000 after acquiring an additional 151 shares during the period. Finally, Mpwm Advisory Solutions LLC bought a new position in Oracle during the fourth quarter worth about $36,000. 42.44% of the stock is owned by institutional investors.

Oracle Price Performance

Shares of ORCL traded down $14.35 during mid-day trading on Friday, reaching $225.97. The company had a trading volume of 16,606,479 shares, compared to its average volume of 10,089,439. The company's 50 day simple moving average is $237.90 and its 200 day simple moving average is $184.93. Oracle Corporation has a 1-year low of $118.86 and a 1-year high of $260.87. The company has a debt-to-equity ratio of 4.07, a quick ratio of 0.75 and a current ratio of 0.75. The company has a market capitalization of $634.72 billion, a price-to-earnings ratio of 52.07, a P/E/G ratio of 3.37 and a beta of 1.43.

Oracle (NYSE:ORCL - Get Free Report) last announced its quarterly earnings results on Wednesday, June 11th. The enterprise software provider reported $1.70 EPS for the quarter, beating analysts' consensus estimates of $1.64 by $0.06. The firm had revenue of $15.90 billion for the quarter, compared to analyst estimates of $15.58 billion. Oracle had a return on equity of 87.34% and a net margin of 21.68%.The business's revenue for the quarter was up 11.3% on a year-over-year basis. During the same period last year, the firm posted $1.63 earnings per share. Analysts expect that Oracle Corporation will post 5 EPS for the current year.

Oracle Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 24th. Investors of record on Thursday, July 10th were given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Thursday, July 10th. Oracle's dividend payout ratio (DPR) is currently 46.08%.

Insider Buying and Selling at Oracle

In related news, insider Michael D. Sicilia sold 15,880 shares of the firm's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $254.48, for a total transaction of $4,041,142.40. Following the completion of the transaction, the insider directly owned 99,212 shares of the company's stock, valued at $25,247,469.76. This trade represents a 13.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Vice Chairman Jeffrey Henley sold 400,000 shares of the firm's stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $190.42, for a total transaction of $76,168,000.00. Following the transaction, the insider owned 1,097,576 shares of the company's stock, valued at approximately $209,000,421.92. The trade was a 26.71% decrease in their position. The disclosure for this sale can be found here. Insiders sold 444,183 shares of company stock worth $86,521,198 over the last 90 days. Company insiders own 42.20% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have commented on ORCL. Oppenheimer reissued an "outperform" rating on shares of Oracle in a report on Wednesday, June 18th. Guggenheim raised their target price on shares of Oracle from $220.00 to $250.00 and gave the company a "buy" rating in a report on Wednesday, June 18th. UBS Group raised their target price on shares of Oracle from $250.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, July 17th. Jefferies Financial Group raised their target price on shares of Oracle from $190.00 to $200.00 and gave the company a "buy" rating in a report on Monday, June 9th. Finally, Citigroup raised shares of Oracle from a "hold" rating to a "strong-buy" rating in a report on Friday, July 18th. Three analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $227.04.

About Oracle

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing.