Pinnacle Associates Ltd. Purchases 11,806 Shares of Oracle Corporation $ORCL

Key Points

• Pinnacle Associates increased its Oracle position by 5.2% in the third quarter, purchasing 11,806 shares and bringing its holdings to 238,348 shares valued at approximately $32.7 million. Institutional investors and hedge funds collectively own 42.44% of Oracle.
• Oracle reported quarterly EPS of $1.92, beating estimates of $1.74, while revenue rose 29.6% year over year to $19.34 billion. The company also declared a quarterly dividend of $0.50 per share, representing a 1.5% yield.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $249.52, although recent target changes reflect differing views on Oracle’s valuation and the financing risks associated with its aggressive AI data-center expansion.

Pinnacle Associates Ltd. grew its position in shares of Oracle Corporation (NYSE:ORCL - Free Report) by 5.2% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 238,348 shares of the enterprise software provider's stock after purchasing an additional 11,806 shares during the quarter. Pinnacle Associates Ltd.'s holdings in Oracle were worth $32,725,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of ORCL. Uncommon Cents Investing Inc increased its holdings in Oracle by 0.8% in the third quarter. Uncommon Cents Investing Inc now owns 23,986 shares of the enterprise software provider's stock worth $3,293,000 after purchasing an additional 196 shares in the last quarter. Robeco Institutional Asset Management B.V. lifted its stake in Oracle by 3.2% in the third quarter. Robeco Institutional Asset Management B.V. now owns 334,647 shares of the enterprise software provider's stock valued at $45,947,000 after buying an additional 10,425 shares during the period. Zullo Investment Group Inc. lifted its stake in Oracle by 4.3% in the third quarter. Zullo Investment Group Inc. now owns 2,432 shares of the enterprise software provider's stock valued at $334,000 after buying an additional 101 shares during the period. DUTCH ASSET Corp boosted its holdings in shares of Oracle by 31.0% during the 3rd quarter. DUTCH ASSET Corp now owns 19,925 shares of the enterprise software provider's stock worth $2,736,000 after buying an additional 4,716 shares in the last quarter. Finally, West Branch Capital LLC boosted its holdings in shares of Oracle by 2.2% during the 3rd quarter. West Branch Capital LLC now owns 43,975 shares of the enterprise software provider's stock worth $6,038,000 after buying an additional 962 shares in the last quarter. Institutional investors and hedge funds own 42.44% of the company's stock.

Oracle Stock Up 0.9%

ORCL stock opened at $130.77 on Wednesday. The stock's 50 day simple moving average is $144.66 and its 200 day simple moving average is $158.56. Oracle Corporation has a fifty-two week low of $114.50 and a fifty-two week high of $287.19. The company has a debt-to-equity ratio of 1.89, a quick ratio of 1.17 and a current ratio of 1.17. The company has a market cap of $395.42 billion, a P/E ratio of 20.50, a price-to-earnings-growth ratio of 0.91 and a beta of 1.78.

Oracle (NYSE:ORCL - Get Free Report) last announced its quarterly earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share (EPS) for the quarter, topping 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 business had revenue of $19.34 billion for the quarter, compared to analyst estimates of $19.13 billion. During the same quarter in the prior year, the company earned $1.47 earnings per share. The company's quarterly revenue was up 29.6% on a year-over-year basis. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. On average, research analysts expect that Oracle Corporation will post 6.73 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, October 9th. Oracle's dividend payout ratio is presently 31.35%.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Healthcare AI partnership: Oracle and AstraZeneca agreed to explore AI and real-world data tools that could improve clinical-trial recruitment, accelerate evidence generation, and connect research with patient-care workflows. The deal expands Oracle’s AI opportunity beyond cloud infrastructure and data centers. Oracle and AstraZeneca Partner to Advance AI-enabled Healthcare Innovation
• Positive Sentiment: Potential AI infrastructure support: TD Cowen said Nvidia may be helping finance Oracle’s new AI data centers, potentially easing the burden of Oracle’s large infrastructure spending. Reports also highlighted strong progress at the Project Jupiter campus. Nvidia May Be Helping Finance Oracle’s AI Data Centers
• Positive Sentiment: Improving demand and bullish valuation views: A BNP Paribas reseller survey pointed to stronger software and AI demand, while Bank of America maintained a highly optimistic outlook and estimated substantial upside. Oracle’s multicloud database revenue has also reportedly grown rapidly, supporting its cloud strategy. Oracle Sees Stronger AI Demand as BNP Paribas Survey Shows Major Improvement
• Neutral Sentiment: Long-term opportunity versus valuation: Commentators see Oracle’s cloud growth, database position, and AI backlog as potential catalysts, but some argue the stock remains overvalued relative to execution and financing risks. Oracle Is Winning in AI, but It’s Still Overvalued
• Negative Sentiment: Debt and buildout concerns: Investors remain worried that Oracle’s aggressive AI data-center expansion could require substantial external financing. Rising borrowing costs, possible credit-rating pressure, and reports that credit-default protection has become more expensive have weighed on the stock. Credit Stress Is Threatening to Unwind the AI Bull

Insider Transactions at Oracle

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 value 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. This trade represents a 10.98% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Rusckowski bought 25,000 shares of the business's stock in a transaction that occurred on Tuesday, September 29th. The stock was purchased at an average price of $139.35 per share, for a total transaction of $3,483,750.00. Following the completion of the acquisition, the director owned 25,390 shares in the company, valued at $3,538,096.50. This represents a 6,410.26% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold 36,075 shares of company stock valued at $5,342,123 over the last ninety days. 38.40% of the stock is owned by company insiders.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Yorkville Ives initiated coverage on shares of Oracle in a research report on Wednesday, October 7th. They set an "in-line" rating and a $155.00 price objective for the company. UBS Group lifted their price objective on shares of Oracle from $245.00 to $250.00 and gave the company a "buy" rating in a research note on Friday, September 11th. Royal Bank Of Canada dropped their target price on shares of Oracle from $190.00 to $165.00 and set a "sector perform" rating on the stock in a research report on Friday, September 11th. DA Davidson reissued a "buy" rating and set a $225.00 target price on shares of Oracle in a research note on Friday, September 11th. Finally, Scotiabank reduced their price target on shares of Oracle from $241.00 to $215.00 and set a "sector outperform" rating for the company in a report on Wednesday, September 9th. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $249.52.

About Oracle

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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