Oracle Corporation $ORCL Stock Position Lessened by Kemnay Advisory Services Inc.

Key Points

• Kemnay Advisory Services sharply reduced its Oracle stake by 96.1% in the fourth quarter, leaving it with 681 shares worth about $133,000.
• 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 declared a quarterly dividend of $0.50 per share and continues to draw analyst support, with Wall Street maintaining a Moderate Buy consensus despite some concerns about debt and cloud-deal execution.

Kemnay Advisory Services Inc. decreased its holdings in Oracle Corporation (NYSE:ORCL - Free Report) by 96.1% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 681 shares of the enterprise software provider's stock after selling 16,952 shares during the quarter. Kemnay Advisory Services Inc.'s holdings in Oracle were worth $133,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently modified their holdings of the business. HFM Investment Advisors LLC lifted its holdings in shares of Oracle by 290.9% in the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider's stock valued at $25,000 after buying an additional 96 shares during the period. Basepoint Wealth LLC acquired a new stake in shares of Oracle in the fourth quarter valued at $26,000. FSA Wealth Management LLC acquired a new stake in shares of Oracle in the third quarter valued at $28,000. Osbon Capital Management LLC acquired a new stake in shares of Oracle in the fourth quarter valued at $28,000. Finally, Joseph Group Capital Management acquired a new stake in shares of Oracle in the fourth quarter valued at $29,000. Institutional investors own 42.44% of the company's stock.

Oracle Stock Down 2.3%

NYSE:ORCL opened at $188.26 on Wednesday. The firm has a market capitalization of $541.45 billion, a price-to-earnings ratio of 32.29, a PEG ratio of 1.21 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 company has a current ratio of 1.12, a quick ratio of 1.35 and a debt-to-equity ratio of 2.84. The business's fifty day moving average price is $186.43 and its 200 day moving average price is $177.61.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, beating the consensus estimate of $1.96 by $0.15. The firm had revenue of $19.18 billion for the quarter, compared to analyst estimates of $19.10 billion. Oracle had a return on equity of 56.43% and a net margin of 25.37%.Oracle's quarterly revenue was up 20.6% on a year-over-year basis. During the same period in the previous year, the firm earned $1.70 earnings per share. 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, sell-side analysts forecast that Oracle Corporation will post 6.46 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Friday, July 10th. Oracle's payout ratio is presently 34.31%.

Insiders Place Their Bets

In related news, EVP Stuart Levey sold 15,000 shares of the company's stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $176.19, for a total transaction of $2,642,850.00. Following the transaction, the executive vice president directly owned 3,429 shares of the company's stock, valued at approximately $604,155.51. The trade was a 81.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company's stock.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle continued to highlight strong AI and cloud momentum, including new OPERA Cloud AI features for hotels and broader demand for its enterprise software and infrastructure, reinforcing the company’s long-term growth story. New AI Capabilities in Oracle OPERA Cloud Supercharge Hotel Operations
• Positive Sentiment: Several analysts and commentators reiterated a bullish view, pointing to Oracle’s huge backlog, improving monetization of AI demand, and the possibility that the market is underestimating its future revenue conversion. Oracle: Discounted AI Story With Outsized Monetization Prospects - Reiterate Buy
• Positive Sentiment: Oracle said details in a report about failed Microsoft cloud leasing talks were inaccurate, limiting the chance that the headline would become a lasting negative if the market views it as overblown. Microsoft's cloud infrastructure talks with Oracle collapse, Business Insider reports
• Neutral Sentiment: Oracle also announced more customer adoption of its cloud applications, including the Centre for Addiction and Mental Health using Oracle Fusion Cloud Applications to improve operations and care. The Centre for Addiction and Mental Health Optimizes Operations and Patient Care with Oracle Fusion Cloud Applications
• Negative Sentiment: Investor anxiety increased after reports that Microsoft walked away from a potential Oracle cloud infrastructure deal worth more than $3 billion over security and compliance concerns, raising questions about near-term deal execution. Microsoft walked away from a $3 billion deal to lease Oracle cloud capacity over security concerns
• Negative Sentiment: Some market commentary also focused on Oracle’s heavy debt load and the cost of its large AI and cloud investment plans, which have fueled concerns about capital spending and financial flexibility. Oracle's Massive Debt Problem

Wall Street Analysts Forecast Growth

ORCL has been the subject of several research analyst reports. Piper Sandler upped their price objective on Oracle from $210.00 to $225.00 and gave the company an "overweight" rating in a report on Thursday, June 11th. Wedbush cut their price objective on Oracle from $275.00 to $240.00 and set an "outperform" rating for the company in a report on Thursday, June 11th. BTIG Research restated a "buy" rating and issued a $400.00 price objective on shares of Oracle in a report on Friday, June 5th. JPMorgan Chase & Co. raised Oracle from a "neutral" rating to an "overweight" rating and reduced their target price for the company from $230.00 to $210.00 in a report on Wednesday, March 11th. Finally, Guggenheim reaffirmed a "buy" rating and set a $400.00 target price on shares of Oracle in a report on Thursday, June 11th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Oracle has a consensus rating of "Moderate Buy" and an average target price of $268.27.

Oracle Profile

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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