Oracle (NYSE:ORCL) Announces Earnings Results

Key Points

• Oracle reported quarterly earnings of $1.20 per share, missing analysts' estimates of $1.47 by $0.27.
• The company declared a quarterly dividend of $0.50 per share, representing an annualized yield of 0.8%.
• Insiders have sold a total of 444,183 shares worth approximately $86.5 million over the last three months, indicating significant insider trading activity.

Oracle (NYSE:ORCL - Get Free Report) released its quarterly earnings results on Tuesday. The enterprise software provider reported $1.20 earnings per share for the quarter, missing analysts' consensus estimates of $1.47 by ($0.27), Zacks reports. Oracle had a return on equity of 87.34% and a net margin of 21.68%.

Oracle Price Performance

ORCL stock traded up $3.19 during midday trading on Tuesday, reaching $241.67. 32,555,125 shares of the stock were exchanged, compared to its average volume of 12,024,229. The stock has a market capitalization of $678.81 billion, a PE ratio of 55.68, a P/E/G ratio of 3.47 and a beta of 1.46. Oracle has a 52 week low of $118.86 and a 52 week high of $260.87. The company has a debt-to-equity ratio of 4.07, a current ratio of 0.75 and a quick ratio of 0.75. The company has a fifty day moving average price of $239.78 and a 200 day moving average price of $187.22.

Oracle Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 23rd. Investors of record on Saturday, January 1st will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 0.8%. Oracle's dividend payout ratio (DPR) is presently 46.08%.

Insider Buying and Selling at Oracle

In other news, insider Clayton M. Magouyrk sold 15,000 shares of Oracle stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $214.10, for a total transaction of $3,211,500.00. Following the sale, the insider directly owned 60,722 shares of the company's stock, valued at approximately $13,000,580.20. This trade represents a 19.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Maria Smith sold 10,000 shares of Oracle stock in a transaction dated Thursday, July 3rd. The shares were sold at an average price of $232.99, for a total value of $2,329,900.00. Following the sale, the executive vice president directly owned 40,807 shares in the company, valued at $9,507,622.93. The trade was a 19.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 444,183 shares of company stock worth $86,521,198 over the last three months. 42.20% of the stock is owned by corporate insiders.

Institutional Trading of Oracle

A number of hedge funds have recently made changes to their positions in ORCL. Scge Management L.P. acquired a new position in shares of Oracle in the second quarter worth approximately $291,215,000. Brighton Jones LLC lifted its stake in shares of Oracle by 189.3% in the fourth quarter. Brighton Jones LLC now owns 153,580 shares of the enterprise software provider's stock worth $25,593,000 after acquiring an additional 100,494 shares during the period. Rafferty Asset Management LLC lifted its stake in shares of Oracle by 21.7% in the second quarter. Rafferty Asset Management LLC now owns 541,299 shares of the enterprise software provider's stock worth $118,344,000 after acquiring an additional 96,541 shares during the period. Brevan Howard Capital Management LP acquired a new position in shares of Oracle in the second quarter worth approximately $10,789,000. Finally, Meridiem Capital Partners LP acquired a new position in shares of Oracle in the second quarter worth approximately $9,392,000. 42.44% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on ORCL. KeyCorp upped their price objective on Oracle from $200.00 to $225.00 and gave the stock an "overweight" rating in a research note on Thursday, June 12th. Loop Capital set a $135.00 price objective on Oracle in a research report on Tuesday, June 10th. Scotiabank began coverage on Oracle in a research report on Thursday, July 17th. They set a "sector outperform" rating and a $300.00 price objective on the stock. Raymond James Financial reaffirmed a "strong-buy" rating on shares of Oracle in a report on Wednesday, June 18th. Finally, Stifel Nicolaus upgraded Oracle from a "hold" rating to a "buy" rating and raised their price target for the stock from $180.00 to $250.00 in a research report on Monday, June 30th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $235.61.

About Oracle

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.

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