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

Key Points

• Analysts maintain a “Moderate Buy” consensus: Of 39 analysts, 28 rate Oracle a buy and two a strong buy, versus eight holds and one sell. The average 12-month price target is approximately $263.97.
• Oracle delivered solid quarterly results: Revenue rose 20.6% year over year to $19.18 billion, while adjusted earnings of $2.11 per share exceeded estimates of $1.96. The company also declared a quarterly dividend of $0.50 per share.
• AI and cloud growth offer upside but carry risks: Oracle’s reported $638 billion backlog and expanding healthcare AI tools support the long-term growth case, while its heavy debt burden, AI infrastructure borrowing needs and delayed expected inflection point create investor concerns.

Shares of Oracle Corporation (NYSE:ORCL - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the thirty-nine analysts that are presently covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, eight have issued a hold recommendation, twenty-eight have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $263.9737.

A number of analysts have commented on the stock. BMO Capital Markets upped their target price on shares of Oracle from $200.00 to $220.00 and gave the company an "outperform" rating in a report on Thursday, June 11th. Weiss Ratings cut shares of Oracle from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, July 20th. Barclays boosted their price objective on shares of Oracle from $240.00 to $250.00 and gave the company an "overweight" rating in a research report on Thursday, June 11th. CLSA started coverage on Oracle in a research note on Monday, July 20th. They issued a "hold" rating and a $145.00 price objective for the company. Finally, Wedbush decreased their target price on Oracle from $275.00 to $240.00 and set an "outperform" rating on the stock in a report on Thursday, June 11th.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s remaining performance obligations reportedly reached approximately $638 billion, strengthening the investment case by providing significant contracted future revenue. Analysts believe strong cloud growth and enterprise AI demand could eventually support a substantial recovery in ORCL shares. Oracle Price Prediction: Can Its $638 Billion Backlog Send the Stock Back Toward $250?
• Positive Sentiment: Several analysts continue to favor Oracle over other enterprise technology companies, citing its record AI backlog, cloud momentum and relatively discounted valuation. Buy ratings ahead of the September earnings report may provide additional support. Oracle vs. Microsoft: Which Enterprise AI Stock Is the Better Buy?
• Positive Sentiment: Oracle Health expanded its Clinical AI Agent with automated professional-fee coding, physician dictation and chart-review tools. The rollout broadens Oracle’s healthcare AI opportunity and could improve adoption of its healthcare software platform. Oracle Health Expands Clinical AI Agent with Automated Coding, Dictation, and Chart Review
• Neutral Sentiment: One analysis characterizes Oracle as inexpensive but argues that the key business inflection may not arrive until 2027. That outlook supports the long-term thesis but implies limited near-term catalysts while the company converts its backlog into revenue and profits. Oracle: Cheap, But Too Early - The Real Inflection Comes In 2027
• Negative Sentiment: Investors remain concerned that Oracle’s AI infrastructure expansion will require heavy borrowing. A broader surge in investment-grade debt used to fund AI projects raises questions about leverage, capital returns and the risk of an AI spending pullback. Oracle’s high debt burden and exposure to large customers, including OpenAI, add to those concerns. Oracle stock has become a bargain, but a risky pattern has emerged
• Negative Sentiment: Billionaire investor Steve Cohen reportedly chose Broadcom over Oracle as his preferred AI stock, a comparison that may reinforce concerns that ORCL’s upside depends on longer-dated execution rather than immediate AI monetization. Broadcom or Oracle: Billionaire Steve Cohen Loads Up on One Top AI Stock

Insider Buying and Selling

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the firm's stock in a transaction dated 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 transaction, the insider owned 400,000 shares of the company's stock, valued at $63,664,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Ironvine Capital Partners LLC bought a new stake in Oracle during the 2nd quarter worth approximately $360,000. Murphy Middleton Hinkle & Parker Inc. boosted its position in shares of Oracle by 8.4% in the second quarter. Murphy Middleton Hinkle & Parker Inc. now owns 3,890 shares of the enterprise software provider's stock worth $570,000 after purchasing an additional 300 shares during the period. Midwest Professional Planners LTD. boosted its position in shares of Oracle by 0.5% in the second quarter. Midwest Professional Planners LTD. now owns 22,912 shares of the enterprise software provider's stock worth $3,358,000 after purchasing an additional 110 shares during the period. Legacy Financial Advisors Inc. increased its stake in shares of Oracle by 8.9% in the second quarter. Legacy Financial Advisors Inc. now owns 22,014 shares of the enterprise software provider's stock worth $3,226,000 after purchasing an additional 1,806 shares in the last quarter. Finally, Proficio Capital Partners LLC purchased a new stake in shares of Oracle in the second quarter worth $1,059,000. 42.44% of the stock is currently owned by institutional investors.

Oracle Stock Down 1.2%

ORCL stock opened at $142.05 on Friday. Oracle has a fifty-two week low of $114.50 and a fifty-two week high of $345.72. The business's 50-day moving average is $145.36 and its two-hundred day moving average is $160.71. The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.12 and a current ratio of 1.12. The company has a market cap of $409.17 billion, a price-to-earnings ratio of 24.37, a P/E/G ratio of 0.90 and a beta of 1.72.

Oracle (NYSE:ORCL - Get Free Report) last announced its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, topping the consensus estimate 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 last year, the firm posted $1.70 earnings per share. The business's revenue for the quarter 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, analysts forecast that Oracle will post 6.49 earnings per share for the current year.

Oracle Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Friday, July 10th. Oracle's payout ratio is currently 34.31%.

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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