Oracle Corporation $ORCL Stock: Retirement Systems of Alabama Boosts Position

Key Points

• Retirement Systems of Alabama increased its Oracle stake by 33.2% in the third quarter, adding 166,137 shares to bring its holdings to 666,318 shares, valued at about $91.5 million. Other institutional investors also added shares; institutions own 42.44% of Oracle.
• Oracle executives sold shares over the past 90 days, including CEO Michael Sicilia, who sold 22,562 shares for about $3.42 million. Insiders collectively sold 36,075 shares worth roughly $5.34 million.
• Oracle’s latest quarter beat analyst estimates, with revenue up 29.6% year over year, but its AI growth outlook faces questions over financing needs, demand, and customer concentration. Reports of a possible end to Microsoft’s AI-computing agreement add uncertainty.

Retirement Systems of Alabama increased its holdings in shares of Oracle Corporation (NYSE:ORCL - Free Report) by 33.2% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 666,318 shares of the enterprise software provider's stock after acquiring an additional 166,137 shares during the period. Retirement Systems of Alabama's holdings in Oracle were worth $91,485,000 as of its most recent SEC filing.

Other large investors have also recently bought and sold shares of the company. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Oracle in the second quarter valued at $625,454,000. Edmond DE Rothschild Holding S.A. raised its stake in shares of Oracle by 8.7% during the 2nd quarter. Edmond DE Rothschild Holding S.A. now owns 79,008 shares of the enterprise software provider's stock worth $11,579,000 after buying an additional 6,296 shares during the last quarter. Generate Investment Management Ltd raised its stake in shares of Oracle by 178.4% during the 3rd quarter. Generate Investment Management Ltd now owns 407,314 shares of the enterprise software provider's stock worth $55,924,000 after buying an additional 261,019 shares during the last quarter. Sawyer & Company Inc purchased a new stake in shares of Oracle in the 3rd quarter worth about $8,243,000. Finally, Verus Wealth Management LLC purchased a new stake in shares of Oracle in the 3rd quarter worth about $1,365,000. Hedge funds and other institutional investors own 42.44% of the company's stock.

Insider Activity

In other news, EVP Maria Smith sold 2,631 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the executive vice president owned 64,357 shares of the company's stock, valued at $9,762,956.90. The trade was a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Michael Sicilia sold 22,562 shares of the company's stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $151.59, for a total transaction of $3,420,173.58. Following the transaction, the chief executive officer directly owned 182,929 shares in the company, valued at $27,730,207.11. The trade was a 10.98% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 36,075 shares of company stock valued at $5,342,123 over the last 90 days. Insiders own 38.40% of the company's stock.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oppenheimer still identifies Oracle as one of the software companies positioned to benefit from AI, while ETFs purchased about $111 million of ORCL shares on Thursday—potential signs of investor support. Oppenheimer sees Oracle as an AI winner ETF purchases of Oracle shares
• Neutral Sentiment: Oracle announced a $1.55 million grant for a Nashville community hub and redevelopment project. The announcement has limited direct relevance to the company’s financial outlook. Oracle community grant announcement
• Negative Sentiment: Microsoft is reportedly winding down an agreement to rent Oracle AI computing capacity, following Oracle’s cancellation of an estimated $7 billion chip-leasing deal with Tencent. The Microsoft contract may be relatively small, but its loss adds uncertainty about demand; S&P reportedly estimates OpenAI represents about half of Oracle’s backlog, heightening customer-concentration concerns. Microsoft deal and Oracle balance-sheet concerns
• Negative Sentiment: Several commentaries question Oracle’s financing needs and the durability of demand for its AI infrastructure. One report also notes ING plans to sell data-center loans that include a major Oracle-related project involving OpenAI and SoftBank. These concerns add to pressure on shares, which are well below their 50- and 200-day moving averages. Questions about Oracle AI infrastructure demand Oracle downgrade commentary

Oracle Trading Up 3.3%

Oracle stock opened at $119.94 on Tuesday. The stock has a market cap of $362.66 billion, a PE ratio of 18.20, a P/E/G ratio of 0.87 and a beta of 1.79. The stock has a 50-day moving average price of $138.49 and a 200 day moving average price of $155.13. Oracle Corporation has a 52 week low of $109.21 and a 52 week high of $250.25. 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 (NYSE:ORCL - Get Free Report) last announced its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, beating the consensus estimate of $1.74 by $0.18. The firm had revenue of $19.34 billion during the quarter, compared to the consensus estimate of $19.13 billion. Oracle had a net margin of 26.36% and a return on equity of 48.85%. The firm's revenue for the quarter was up 29.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.47 EPS. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. Equities research analysts predict that Oracle Corporation will post 6.71 earnings per share for the current fiscal year.

Oracle Announces Dividend

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

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. Melius Research set a $170.00 price objective on shares of Oracle in a research note on Thursday, October 29th. Piper Sandler restated an "overweight" rating and set a $225.00 target price on shares of Oracle in a research report on Thursday, October 29th. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Oracle in a report on Tuesday, October 27th. Stephens raised shares of Oracle from an "equal weight" rating to an "overweight" rating and upped their price target for the company from $185.00 to $213.00 in a report on Monday, November 2nd. Finally, BMO Capital Markets lowered their price target on shares of Oracle from $220.00 to $195.00 and set an "outperform" rating on the stock in a research report on Friday, September 11th. One 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 assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $249.27.

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.

Founded in 1977 as Software Development Laboratories, Oracle serves businesses and public-sector organizations across geographies worldwide.

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