Peterson Wealth Services Grows Position in Oracle Corporation $ORCL

Key Points

• Peterson Wealth Services sharply increased its Oracle stake in the fourth quarter, lifting holdings by 1,474.7% to 26,251 shares worth about $5.1 million. Oracle now accounts for roughly 1.3% of the firm’s portfolio.
• Oracle reported strong fiscal Q4 results, beating both revenue and earnings estimates as cloud infrastructure growth remained strong on AI demand. The company also highlighted a massive $638 billion remaining performance obligation backlog.
• Despite the strong quarter, investors are worried about rising costs tied to AI data-center expansion, including much higher capital spending and plans to raise about $40 billion in funding. Those concerns helped pressure the stock, even as analysts largely kept bullish ratings and raised some price targets.

Peterson Wealth Services lifted its stake in Oracle Corporation (NYSE:ORCL - Free Report) by 1,474.7% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 26,251 shares of the enterprise software provider's stock after buying an additional 24,584 shares during the quarter. Oracle makes up about 1.3% of Peterson Wealth Services' investment portfolio, making the stock its 19th largest position. Peterson Wealth Services' holdings in Oracle were worth $5,116,000 as of its most recent filing with the SEC.

Several other hedge funds have also recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in shares of Oracle by 3.5% in the fourth quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider's stock worth $34,070,674,000 after buying an additional 5,841,584 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Oracle by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 37,734,944 shares of the enterprise software provider's stock worth $7,328,754,000 after buying an additional 665,374 shares in the last quarter. Capital Research Global Investors lifted its holdings in shares of Oracle by 29.3% in the fourth quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider's stock worth $5,874,070,000 after buying an additional 6,826,299 shares in the last quarter. Norges Bank purchased a new position in shares of Oracle in the fourth quarter worth $4,336,031,000. Finally, Bank of New York Mellon Corp lifted its holdings in shares of Oracle by 7.8% in the fourth quarter. Bank of New York Mellon Corp now owns 12,866,075 shares of the enterprise software provider's stock worth $2,507,727,000 after buying an additional 927,618 shares in the last quarter. Hedge funds and other institutional investors own 42.44% of the company's stock.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle posted record fiscal Q4 results, with revenue and EPS both beating estimates, and cloud infrastructure revenue surged as demand for AI-related capacity stayed strong.
• Positive Sentiment: The company reported a massive $638 billion remaining performance obligation backlog, signaling deep customer demand and a long runway for future revenue.
• Positive Sentiment: Oracle also won a $395.8 million U.S. Office of Personnel Management contract to modernize federal HR systems, adding a new government growth opportunity. Article Title
• Neutral Sentiment: Several analysts raised price targets or reiterated bullish ratings after the report, suggesting some on Wall Street still see upside despite the selloff.
• Negative Sentiment: Shares are under pressure because Oracle said AI-related capital expenditures will be much higher than expected, with spending potentially reaching about $95 billion in fiscal 2027.
• Negative Sentiment: Management also signaled more debt and equity funding, including plans to raise roughly $40 billion, which raised concerns about leverage, dilution, and weaker free cash flow.
• Negative Sentiment: Oracle warned that gross margins may step down as it ramps data-center buildout, adding to worries that strong AI growth may come with lower near-term profitability.

Oracle Trading Down 8.6%

Shares of ORCL opened at $184.03 on Friday. The company's fifty day moving average is $183.90 and its 200 day moving average is $177.88. Oracle Corporation has a fifty-two week low of $134.57 and a fifty-two week high of $345.72. The stock has a market capitalization of $529.27 billion, a PE ratio of 31.57, a P/E/G ratio of 1.58 and a beta of 1.65. The company has a debt-to-equity ratio of 3.66, a quick ratio of 1.35 and a current ratio of 1.35.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, beating analysts' consensus estimates of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 62.74%. The business had revenue of $19.18 billion for the quarter, compared to analysts' expectations of $19.10 billion. During the same quarter in the previous year, the business posted $1.70 earnings per share. The business's revenue was up 20.6% compared to the same quarter last year. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. Sell-side analysts expect that Oracle Corporation will post 6.33 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be given a dividend of $0.50 per share. The ex-dividend date is Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a yield of 1.1%. Oracle's payout ratio is 35.91%.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. DA Davidson boosted their target price on shares of Oracle from $200.00 to $225.00 and gave the stock a "buy" rating in a report on Thursday. Wedbush lowered their target price on shares of Oracle from $275.00 to $240.00 and set an "outperform" rating on the stock in a report on Thursday. Royal Bank Of Canada restated a "sector perform" rating and issued a $190.00 price target on shares of Oracle in a research report on Thursday. Scotiabank restated an "overweight" rating on shares of Oracle in a research report on Thursday. Finally, Bank of America boosted their price target on shares of Oracle from $200.00 to $240.00 and gave the stock a "buy" rating in a research report on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $268.27.

Insiders Place Their Bets

In other Oracle news, EVP Stuart Levey sold 15,000 shares of the business's stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $176.19, for a total transaction of $2,642,850.00. Following the transaction, the executive vice president owned 3,429 shares in the company, valued at $604,155.51. The trade was a 81.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by company insiders.

About Oracle

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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