Oracle Corporation (NYSE:ORCL) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Oracle, with 28 buy, two strong-buy, eight hold and one sell rating among 39 analysts. The average 12-month price target is approximately $265.03.
• Oracle secured a nearly $7 billion, 10-year Pentagon software contract, potentially strengthening its government and cloud businesses and supporting expectations for additional federal AI and enterprise-software deals.
• Despite strong quarterly results—EPS of $2.11 and revenue of $19.18 billion, up 20.6% year over year—investors remain concerned about the company’s heavy AI infrastructure spending, rising debt and pressure on free cash flow.

Oracle Corporation (NYSE:ORCL - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the thirty-nine brokerages that are currently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, twenty-eight have issued a buy rating and two have assigned a strong buy rating to the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $265.0263.

Several equities research analysts have commented on ORCL shares. Scotiabank reaffirmed an "overweight" rating on shares of Oracle in a report on Thursday, June 11th. Wolfe Research reiterated an "outperform" rating and issued a $225.00 target price on shares of Oracle in a research note on Thursday, June 11th. Morgan Stanley reissued a "mixed" rating on shares of Oracle in a research report on Thursday, June 11th. Sanford C. Bernstein upped their price target on shares of Oracle from $319.00 to $325.00 and gave the company an "outperform" rating in a research note on Thursday, June 11th. Finally, Moffett Nathanson set a $325.00 price objective on shares of Oracle in a report on Thursday, June 11th.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle won a nearly $7 billion, 10-year U.S. Department of Defense software contract, a meaningful revenue win that could strengthen its government business and support sentiment around its cloud and enterprise software platform. Oracle signs 10-year software contract with Pentagon worth up to $7 billion
• Positive Sentiment: Retail traders and some analysts see the Pentagon award as a potential catalyst for more federal AI and enterprise-software deals, which could improve Oracle’s growth outlook near term. What's Going On With Oracle Stock on Friday?
• Neutral Sentiment: Commentary around Oracle’s AI infrastructure strategy remains mixed: supporters point to a large AI order backlog, while skeptics question whether the company can turn that demand into profits quickly enough. Oracle Stock (ORCL) Opinions on AI Infrastructure Investments and Stock Decline
• Negative Sentiment: Bearish articles continue to highlight Oracle’s large capex burden, rising debt load, and concerns that free cash flow may stay pressured as it builds out AI data centers. Here’s why Oracle stock may still hit $100 despite the Pentagon contract
• Negative Sentiment: Oracle is also facing broader investor concern over slowing web traffic and weak sentiment around its AI spending, with some commentary framing the company as overextended. Ca$htag$: ORCL Becoming AI "House of Cards" as CapEx Concerns Swell

Oracle Stock Performance

NYSE:ORCL opened at $114.90 on Monday. The company has a market capitalization of $330.97 billion, a P/E ratio of 19.71, a P/E/G ratio of 0.72 and a beta of 1.72. The business has a fifty day simple moving average of $170.31 and a two-hundred day simple moving average of $166.70. 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 has a 1 year low of $114.75 and a 1 year high of $345.72.

Oracle (NYSE:ORCL - Get Free Report) last issued its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating analysts' consensus estimates of $1.96 by $0.15. The firm had revenue of $19.18 billion for the quarter, compared to analysts' expectations of $19.10 billion. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The business's revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.70 EPS. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. On average, analysts expect that Oracle will post 6.47 earnings per share for the current year.

Oracle Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Friday, July 10th. Oracle's dividend payout ratio (DPR) is presently 34.31%.

Insider Activity at Oracle

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total value of $63,664,000.00. Following the completion of the transaction, the insider directly owned 400,000 shares in the company, valued at approximately $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Trust Asset Management LLC grew its holdings in Oracle by 3.7% during the 2nd quarter. Trust Asset Management LLC now owns 18,516 shares of the enterprise software provider's stock valued at $2,714,000 after buying an additional 667 shares in the last quarter. Whitener Capital Management Inc. lifted its holdings in shares of Oracle by 2.4% in the second quarter. Whitener Capital Management Inc. now owns 5,149 shares of the enterprise software provider's stock worth $755,000 after buying an additional 119 shares in the last quarter. JFS Wealth Advisors LLC boosted its position in shares of Oracle by 5.6% in the second quarter. JFS Wealth Advisors LLC now owns 2,393 shares of the enterprise software provider's stock valued at $351,000 after acquiring an additional 126 shares during the period. Tema ETFs LLC boosted its position in shares of Oracle by 10.7% in the second quarter. Tema ETFs LLC now owns 34,424 shares of the enterprise software provider's stock valued at $5,045,000 after acquiring an additional 3,335 shares during the period. Finally, West Branch Capital LLC grew its stake in Oracle by 0.8% during the second quarter. West Branch Capital LLC now owns 43,013 shares of the enterprise software provider's stock valued at $6,304,000 after acquiring an additional 360 shares in the last quarter. Institutional investors own 42.44% of the company's stock.

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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