Oracle Corporation $ORCL Stock Sold by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group reduced its Oracle holdings by 3.1%, selling 116,441 shares and retaining approximately 3.58 million shares worth $492 million. Institutional investors own 42.44% of Oracle.
• Oracle shares opened at $130.50, down 6.5%, and remain well below their 52-week high of $265.81. Despite the decline, analysts maintain a consensus “Moderate Buy” rating with an average price target of $248.41.
• Oracle beat quarterly expectations with $1.92 in EPS and $19.34 billion in revenue, while revenue grew 29.6% year over year. Strong AI and cloud demand supports the outlook, but heavy funding needs, negative free cash flow and a 1.89 debt-to-equity ratio remain investor concerns.

Sumitomo Mitsui Trust Group Inc. cut its holdings in shares of Oracle Corporation (NYSE:ORCL - Free Report) by 3.1% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 3,583,720 shares of the enterprise software provider's stock after selling 116,441 shares during the period. Sumitomo Mitsui Trust Group Inc. owned about 0.12% of Oracle worth $492,045,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of ORCL. Pilgrim Partners Asia Pte Ltd acquired a new stake in Oracle during the 3rd quarter valued at approximately $25,000. Foresight Capital Management Advisors Inc. purchased a new stake in Oracle during the 3rd quarter worth approximately $26,000. North Point Portfolio Managers Corp OH acquired a new position in shares of Oracle in the 3rd quarter valued at approximately $27,000. Persistent Asset Partners Ltd acquired a new position in shares of Oracle in the 2nd quarter valued at approximately $29,000. Finally, Strengthening Families & Communities LLC raised its position in shares of Oracle by 231.3% in the 3rd quarter. Strengthening Families & Communities LLC now owns 222 shares of the enterprise software provider's stock valued at $30,000 after purchasing an additional 155 shares in the last quarter. 42.44% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. DA Davidson reissued a "buy" rating and set a $225.00 price target on shares of Oracle in a research report on Friday, September 11th. Stifel Nicolaus cut their price target on shares of Oracle from $220.00 to $200.00 and set a "buy" rating on the stock in a report on Friday, September 11th. Oppenheimer reiterated an "outperform" rating and set a $275.00 price objective on shares of Oracle in a research note on Thursday. Argus reissued a "buy" rating and set a $225.00 price objective on shares of Oracle in a report on Monday, September 14th. Finally, Morgan Stanley boosted their target price on shares of Oracle from $207.00 to $210.00 and gave the stock an "equal weight" rating in a research report on Friday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Oracle presently has a consensus rating of "Moderate Buy" and a consensus price target of $248.41.

Oracle Trading Down 6.5%

Oracle stock opened at $130.50 on Friday. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 1.89. The firm has a 50-day moving average price of $141.81 and a two-hundred day moving average price of $157.19. The firm has a market capitalization of $394.60 billion, a price-to-earnings ratio of 20.45, a PEG ratio of 0.92 and a beta of 1.78. Oracle Corporation has a 52-week low of $114.50 and a 52-week high of $265.81.

Oracle (NYSE:ORCL - Get Free Report) last posted its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, beating the consensus estimate of $1.74 by $0.18. Oracle had a return on equity of 48.85% and a net margin of 26.36%. The firm had revenue of $19.34 billion for the quarter, compared to analysts' expectations of $19.13 billion. During the same period last year, the firm earned $1.47 EPS. The firm's 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. Sell-side analysts expect that Oracle Corporation will post 6.72 earnings per share for the current year.

Oracle Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Friday, October 9th were paid a $0.50 dividend. The ex-dividend date of this dividend was Friday, October 9th. This represents a $2.00 annualized dividend and a dividend yield of 1.5%. Oracle's dividend payout ratio is presently 31.35%.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s investor-day outlook remains the main bullish catalyst. Management is targeting at least $225 billion in fiscal 2030 revenue, approximately $21 in fiscal 2030 EPS, and $30 billion in free cash flow by fiscal 2029. The company also reported exceptionally strong AI bookings and cloud backlog growth, suggesting demand for its AI infrastructure remains robust. Oracle Stock Forecast – Analysts React to Strong FY30 Outlook
• Positive Sentiment: Oracle pledged to limit additional capital-market funding to approximately $20 billion through fiscal 2030, addressing concerns that its data-center expansion could require unrestrained borrowing and share issuance. Analysts including Bank of America, TD Cowen, and Piper Sandler have maintained bullish ratings and substantial price targets. Oracle Analyst Day Eases Funding Concerns
• Neutral Sentiment: Fiscal 2027 guidance calls for $8.10 EPS, ahead of the $7.86 consensus, but the $90 billion revenue forecast is slightly below the $90.4 billion analyst estimate. This leaves investors focused on whether AI bookings convert into reported revenue and cash flow over the next two quarters. Oracle Just Told Investors What Many Already Knew
• Negative Sentiment: Oracle’s AI expansion has produced deeply negative free cash flow and required roughly $48 billion of debt and equity funding in fiscal 2026. Investors remain skeptical that the projected cash-flow turnaround will arrive quickly enough, particularly given Oracle’s debt-to-equity ratio of 1.89. Oracle Caps New Capital Raising
• Negative Sentiment: Broader technology weakness and concerns about lower-than-expected big-tech capital spending have pressured AI infrastructure stocks. Microsoft CEO Satya Nadella’s criticism of businesses dependent on leasing AI capacity to a small number of customers also raised questions about Oracle’s customer concentration and infrastructure economics. Satya Nadella Criticizes AI Capacity Rental Models

Insider Transactions at Oracle

In related news, EVP Maria Smith sold 2,631 shares of Oracle stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total transaction of $399,122.70. Following the sale, the executive vice president directly owned 64,357 shares in the company, valued at $9,762,956.90. The trade was a 3.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Stephen H. Rusckowski acquired 25,000 shares of Oracle stock in a transaction that occurred on Tuesday, September 29th. The stock was bought at an average cost of $139.35 per share, with a total value of $3,483,750.00. Following the acquisition, the director directly owned 25,390 shares of the company's stock, valued at approximately $3,538,096.50. This trade represents a 6,410.26% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders sold 36,075 shares of company stock valued at $5,342,123. 38.40% of the stock is currently owned by corporate insiders.

Oracle Company Profile

Oracle Corporation NYSE: ORCL is a global technology company that develops enterprise software, cloud infrastructure and database technologies. Its products help organizations store, manage, analyze and secure data, while supporting business operations across industries and geographies.

The company's offerings include Oracle Database, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud-based applications. These applications serve functions such as enterprise resource planning, financial management, human resources, supply-chain management, customer experience and industry-specific operations.

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