Primecap Management Co. CA Has $1.51 Billion Stock Holdings in Oracle Corporation (NYSE:ORCL)

Key Points

• Primecap Management Co. CA reduced its stake in Oracle Corporation by 11.3%, selling over 1.3 million shares, which now makes Oracle about 1.3% of its overall holdings.
• Oracle reported a quarterly EPS of $1.70, exceeding analysts' estimates, and revenue increased by 11.3% compared to the same quarter last year.
• The recent quarterly dividend was set at $0.50 per share, reflecting an annualized dividend of $2.00 and a yield of 0.8%.

Primecap Management Co. CA lowered its position in shares of Oracle Corporation (NYSE:ORCL - Free Report) by 11.3% during the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 10,777,275 shares of the enterprise software provider's stock after selling 1,379,180 shares during the period. Oracle comprises about 1.3% of Primecap Management Co. CA's holdings, making the stock its 21st largest position. Primecap Management Co. CA owned 0.39% of Oracle worth $1,506,771,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in ORCL. Redmont Wealth Advisors LLC acquired a new stake in shares of Oracle during the first quarter worth about $27,000. Inlight Wealth Management LLC acquired a new position in shares of Oracle during the 1st quarter worth $28,000. Iron Horse Wealth Management LLC boosted its holdings in Oracle by 284.9% during the first quarter. Iron Horse Wealth Management LLC now owns 204 shares of the enterprise software provider's stock worth $29,000 after buying an additional 151 shares in the last quarter. Sunbeam Capital Management LLC purchased a new position in Oracle in the fourth quarter valued at about $30,000. Finally, Mpwm Advisory Solutions LLC purchased a new position in Oracle in the 4th quarter valued at approximately $36,000. Institutional investors and hedge funds own 42.44% of the company's stock.

Insider Activity at Oracle

In other news, EVP Maria Smith sold 10,000 shares of Oracle stock in a transaction that occurred on Thursday, July 3rd. The stock was sold at an average price of $232.99, for a total transaction of $2,329,900.00. Following the completion of the transaction, the executive vice president directly owned 40,807 shares in the company, valued at approximately $9,507,622.93. The trade was a 19.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Rona Alison Fairhead bought 480 shares of the firm's stock in a transaction dated Monday, July 7th. The stock was purchased at an average cost of $233.87 per share, for a total transaction of $112,257.60. Following the transaction, the director directly owned 22,110 shares of the company's stock, valued at $5,170,865.70. The trade was a 2.22% increase in their position. The disclosure for this purchase can be found here. Insiders sold 428,303 shares of company stock worth $82,480,056 over the last ninety days. Company insiders own 42.20% of the company's stock.

Oracle Trading Up 0.3%

Shares of NYSE ORCL traded up $0.85 during midday trading on Wednesday, reaching $256.52. 9,919,562 shares of the stock were exchanged, compared to its average volume of 10,380,186. The company has a debt-to-equity ratio of 4.07, a current ratio of 0.75 and a quick ratio of 0.75. Oracle Corporation has a 12 month low of $118.86 and a 12 month high of $260.87. The business has a 50-day simple moving average of $217.36 and a two-hundred day simple moving average of $176.15. The company has a market capitalization of $720.51 billion, a price-to-earnings ratio of 59.11, a P/E/G ratio of 3.81 and a beta of 1.43.

Oracle (NYSE:ORCL - Get Free Report) last posted its earnings results on Wednesday, June 11th. The enterprise software provider reported $1.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.64 by $0.06. Oracle had a return on equity of 87.34% and a net margin of 21.68%. The business had revenue of $15.90 billion during the quarter, compared to analysts' expectations of $15.58 billion. During the same period in the prior year, the business earned $1.63 EPS. Oracle's revenue for the quarter was up 11.3% compared to the same quarter last year. As a group, equities research analysts expect that Oracle Corporation will post 5 EPS for the current year.

Oracle Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 24th. Stockholders of record on Thursday, July 10th were paid a dividend of $0.50 per share. The ex-dividend date was Thursday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 0.8%. Oracle's payout ratio is currently 46.08%.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Mizuho reduced their price target on shares of Oracle from $210.00 to $180.00 and set an "outperform" rating on the stock in a report on Tuesday, April 15th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $240.00 target price (up previously from $200.00) on shares of Oracle in a research report on Thursday, June 12th. Raymond James Financial reaffirmed a "strong-buy" rating on shares of Oracle in a research report on Wednesday, June 18th. Stifel Nicolaus upgraded shares of Oracle from a "hold" rating to a "buy" rating and increased their price objective for the stock from $180.00 to $250.00 in a report on Monday, June 30th. Finally, Cowen reaffirmed a "buy" rating on shares of Oracle in a research report on Thursday, June 12th. Nine investment analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and three have given a strong buy rating to the company. According to data from MarketBeat.com, Oracle currently has a consensus rating of "Moderate Buy" and a consensus price target of $222.75.

Oracle Profile

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing.