Wealthfront Advisers LLC Buys New Position in Oracle Corporation $ORCL

Key Points

• Wealthfront Advisers initiated a 221,822-share Oracle position valued at approximately $32.5 million in the second quarter. Institutional investors collectively own 42.44% of Oracle.
• Analysts maintain a generally positive outlook, with Oracle receiving a consensus “Moderate Buy” rating and an average price target of $263.97. The company also exceeded quarterly earnings and revenue expectations, reporting 20.6% year-over-year revenue growth.
• Oracle’s AI and cloud expansion presents both opportunity and risk: record cloud demand and partnerships support growth, while power-supply delays, heavy borrowing, pressured free cash flow and broader software-stock selling weigh on investor sentiment.

Wealthfront Advisers LLC bought a new stake in shares of Oracle Corporation (NYSE:ORCL - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 221,822 shares of the enterprise software provider's stock, valued at approximately $32,508,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of ORCL. Global Strategic Investment Solutions LLC bought a new position in shares of Oracle in the 2nd quarter worth $993,000. Foster & Motley Inc. bought a new stake in shares of Oracle during the 2nd quarter worth $8,162,000. Main Street Financial Solutions LLC lifted its holdings in shares of Oracle by 7.8% during the 2nd quarter. Main Street Financial Solutions LLC now owns 10,660 shares of the enterprise software provider's stock worth $1,562,000 after acquiring an additional 772 shares during the last quarter. Rayburn West Financial Services LLC purchased a new position in Oracle in the second quarter worth $5,487,000. Finally, First National Bank of Omaha purchased a new position in Oracle in the second quarter worth $9,716,000. Hedge funds and other institutional investors own 42.44% of the company's stock.

Analyst Ratings Changes

ORCL has been the topic of a number of research reports. Evercore restated an "outperform" rating and set a $245.00 price target on shares of Oracle in a research report on Monday, June 8th. DA Davidson upped their price objective on Oracle from $200.00 to $225.00 and gave the stock a "buy" rating in a report on Thursday, June 11th. Weiss Ratings lowered Oracle from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, July 20th. Sanford C. Bernstein raised their price objective on Oracle from $319.00 to $325.00 and gave the company an "outperform" rating in a report on Thursday, June 11th. Finally, Mizuho set a $320.00 target price on Oracle in a research report on Wednesday, June 3rd. Two 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 given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $263.97.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s record cloud backlog, expanding partnerships—including deeper integration with Amazon Web Services—and stronger guidance support the case that the company is transitioning from a legacy database provider into a major AI infrastructure and hyperscale cloud player. Should You Buy Oracle Stock Despite Its Big AI Data Center Bet?
• Positive Sentiment: Oracle raised its dividend to $2 per share, marking the 12th consecutive annual increase. The payout is viewed as relatively safe for now, providing some support for income-oriented investors despite heavy AI spending. Oracle Just Raised Its Dividend for a 12th Straight Year
• Neutral Sentiment: Unusually large, long-dated call-option activity may indicate that institutional investors see value in Oracle’s depressed valuation, although the trades could also involve covered-call strategies rather than outright bullish bets. Huge Unusual Long-Dated Call Options in Oracle
• Negative Sentiment: Oracle’s approximately $165 billion AI data-center expansion faces another energy and pipeline roadblock in New Mexico. Delays in securing sufficient power raise questions about project timing, execution and the pace at which planned capacity can generate revenue. Oracle Stock Falls as Its AI Data Center Hits Another Pipeline Roadblock
• Negative Sentiment: Investors are increasingly concerned that AI infrastructure spending is consuming cash faster than Oracle can generate it. The company has increased borrowing substantially alongside other technology companies, adding balance-sheet and interest-rate risk while pressuring free cash flow and potentially the long-term safety of its dividend. AI’s Half-Trillion-Dollar Borrowing Binge
• Negative Sentiment: Broader rotation away from software stocks and concern over the sustainability of the AI trade have added selling pressure, as investors favor chipmakers and other direct AI beneficiaries. Oracle, Software Stocks Fall as AI Trade Seesaws

Oracle Trading Down 2.7%

Shares of ORCL stock opened at $142.67 on Wednesday. The business has a 50-day moving average of $147.34 and a 200 day moving average of $161.05. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12. Oracle Corporation has a 1-year low of $114.50 and a 1-year high of $345.72. The stock has a market capitalization of $410.96 billion, a PE ratio of 24.47, a P/E/G ratio of 0.94 and a beta of 1.72.

Oracle (NYSE:ORCL - Get Free Report) last announced its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, topping analysts' consensus estimates of $1.96 by $0.15. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The business had revenue of $19.18 billion for the quarter, compared to analysts' expectations of $19.10 billion. During the same period in the previous year, the firm earned $1.70 EPS. The business's quarterly revenue was up 20.6% on a year-over-year basis. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, sell-side analysts anticipate that Oracle Corporation will post 6.49 earnings per share for the current year.

Oracle Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were paid a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend was Friday, July 10th. Oracle's payout ratio is presently 34.31%.

Insider Activity at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the company's stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the completion of the sale, the insider directly owned 400,000 shares in the company, valued at $63,664,000. This represents a 50.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by insiders.

Oracle Company Profile

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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