Oracle Corporation $ORCL Stock Position Increased by Philadelphia Trust Co.

Key Points

• Philadelphia Trust Co. increased its Oracle stake by 91.6% in the third quarter, adding 15,975 shares to hold 33,406 shares valued at about $4.6 million.
• Other institutional investors also expanded or initiated Oracle positions; institutions collectively own 42.44% of the company’s shares.
• Oracle’s latest reported quarter beat earnings and revenue estimates, with revenue up 29.6% year over year. The article also notes concerns about AI contract losses, data-center spending and financing risks.

Philadelphia Trust Co. raised its stake in shares of Oracle Corporation (NYSE:ORCL - Free Report) by 91.6% in the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 33,406 shares of the enterprise software provider's stock after purchasing an additional 15,975 shares during the period. Philadelphia Trust Co.'s holdings in Oracle were worth $4,587,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in ORCL. Bank of New York Mellon Corp purchased a new stake in shares of Oracle in the second quarter worth about $1,911,930,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Oracle during the second quarter valued at approximately $625,454,000. Corient Private Wealth LP bought a new position in Oracle during the second quarter valued at approximately $186,175,000. Mirae Asset Global Investments Co. Ltd. bought a new position in Oracle during the third quarter valued at approximately $96,746,000. Finally, First Trust Advisors LP grew its holdings in Oracle by 23.3% during the 1st quarter. First Trust Advisors LP now owns 3,633,070 shares of the enterprise software provider's stock valued at $534,461,000 after buying an additional 685,570 shares in the last quarter. Institutional investors own 42.44% of the company's stock.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle broke ground on its future Nashville global headquarters, a long-term investment intended to support growth in cloud, AI and healthcare and create thousands of jobs. Oracle Nashville headquarters announcement
• Positive Sentiment: The company launched AI-assisted treasury and customer analytics applications for financial institutions, adding to its cloud and AI product offerings. Oracle financial analytics announcement
• Neutral Sentiment: Oracle says renewed rentals of older GPUs were priced at a premium, suggesting some continued demand for its existing AI capacity; however, this does not offset uncertainty around specific customer contracts. Report on GPU renewals and Microsoft
• Negative Sentiment: Reports said Oracle lost an estimated $7 billion Tencent chip-leasing deal and that Microsoft is winding down an AI-computing arrangement, reportedly because Oracle’s older Nvidia chips no longer meet Microsoft’s requirements. These developments raise questions about infrastructure demand and Oracle’s ability to secure customers for its planned capacity. Report on Tencent and Microsoft contracts
• Negative Sentiment: Commentary highlighted concentration and financing risks: Oracle’s AI backlog is said to rely heavily on OpenAI, while its aggressive data-center spending increases exposure to debt, project execution and potential AI-market setbacks. Analysis of Oracle's balance sheet and AI contracts

Wall Street Analyst Weigh In

A number of analysts have issued reports on ORCL shares. Yorkville Ives started coverage on Oracle in a research note on Wednesday, October 7th. They issued an "in-line" rating and a $155.00 price objective on the stock. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Oracle in a report on Thursday, September 10th. Citigroup reiterated a "market outperform" rating on shares of Oracle in a research report on Thursday, October 29th. Rothschild & Co Redburn cut their target price on shares of Oracle from $155.00 to $110.00 and set a "sell" rating for the company in a report on Monday, July 20th. Finally, BMO Capital Markets cut their target price on shares of Oracle from $220.00 to $195.00 and set an "outperform" rating for the company in a report on Friday, September 11th. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $249.27.

Oracle Trading Down 1.6%

ORCL opened at $117.87 on Wednesday. The stock has a 50-day moving average of $137.85 and a 200 day moving average of $154.83. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 1.89. Oracle Corporation has a 12 month low of $109.21 and a 12 month high of $250.25. The firm has a market cap of $356.42 billion, a P/E ratio of 18.48, a P/E/G ratio of 0.84 and a beta of 1.79.

Oracle (NYSE:ORCL - Get Free Report) last issued its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.74 by $0.18. Oracle had a return on equity of 48.85% and a net margin of 26.36%. The business had revenue of $19.34 billion for the quarter, compared to the consensus estimate of $19.13 billion. During the same period in the prior year, the business posted $1.47 earnings per share. The company's quarterly revenue was up 29.6% compared to the same quarter last year. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. As a group, research analysts forecast that Oracle Corporation will post 6.71 EPS for the current year.

Oracle Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Friday, October 9th were given a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, October 9th. This represents a $2.00 annualized dividend and a dividend yield of 1.7%. Oracle's payout ratio is currently 31.35%.

Insider Activity

In related news, CEO Michael Sicilia sold 22,562 shares of the stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $151.59, for a total transaction of $3,420,173.58. Following the sale, the chief executive officer owned 182,929 shares in the company, valued at approximately $27,730,207.11. This represents a 10.98% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Maria Smith sold 2,631 shares of the stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total value of $399,122.70. Following the sale, the executive vice president owned 64,357 shares in the company, valued at $9,762,956.90. The trade was a 3.93% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 36,075 shares of company stock valued at $5,342,123. 38.40% of the stock is currently owned by insiders.

Oracle Profile

Oracle Corporation is a technology company that develops and provides database software, cloud services, and enterprise applications. Its products help organizations manage data, run business operations, and build and deploy applications. Oracle's offerings include Oracle Database, Oracle Cloud Infrastructure, and cloud-based applications for functions such as finance, human resources, supply chain management, and customer experience. The company also provides software support, consulting, and related services.

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