Oracle (NYSE:ORCL) Sees Large Volume Increase - Still a Buy?

Key Points

• Oracle Corporation experienced a 22% increase in trading volume, with over 16 million shares exchanged, despite the stock price dropping to $298.09 from a previous close of $307.86.
• Analysts have varying price targets for Oracle, with a consensus price target of $296.84 and an average rating of "Moderate Buy" from numerous equity research firms.
• The company recently announced a $0.50 quarterly dividend, to be paid on October 23rd, representing an annualized yield of 0.7% and a payout ratio of 46.08%.

Shares of Oracle Corporation (NYSE:ORCL - Get Free Report) saw strong trading volume on Friday . 16,002,359 shares changed hands during trading, an increase of 22% from the previous session's volume of 13,084,921 shares.The stock last traded at $298.09 and had previously closed at $307.86.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. UBS Group set a $300.00 price objective on shares of Oracle in a research report on Wednesday. The Goldman Sachs Group reissued a "neutral" rating and issued a $195.00 price objective (up previously from $145.00) on shares of Oracle in a report on Friday, June 13th. DA Davidson upped their price target on shares of Oracle from $220.00 to $300.00 and gave the company a "neutral" rating in a research report on Wednesday. Loop Capital set a $135.00 target price on shares of Oracle in a research note on Tuesday, June 10th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $240.00 price objective (up from $200.00) on shares of Oracle in a research note on Thursday, June 12th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, Oracle presently has an average rating of "Moderate Buy" and a consensus price target of $296.84.

Oracle Stock Down 4.3%

The company has a current ratio of 0.62, a quick ratio of 0.75 and a debt-to-equity ratio of 3.33. The stock's fifty day moving average is $243.59 and its 200 day moving average is $189.52. The company has a market capitalization of $827.13 billion, a P/E ratio of 68.03, a price-to-earnings-growth ratio of 4.91 and a beta of 1.46.

Oracle (NYSE:ORCL - Get Free Report) last announced its quarterly earnings results on Wednesday, June 11th. The enterprise software provider reported $1.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.64 by $0.06. Oracle had a net margin of 21.08% and a return on equity of 72.93%. The firm had revenue of $15.90 billion for the quarter, compared to the consensus estimate of $15.58 billion. During the same quarter last year, the firm posted $1.63 EPS. The business's quarterly revenue was up 11.3% compared to the same quarter last year. Research analysts predict that Oracle Corporation will post 5 EPS for the current fiscal year.

Oracle Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 23rd. Shareholders of record on Thursday, October 9th will be given a dividend of $0.50 per share. The ex-dividend date is Thursday, October 9th. This represents a $2.00 dividend on an annualized basis and a yield of 0.7%. Oracle's payout ratio is 46.08%.

Insider Buying and Selling

In other Oracle news, Director Rona Alison Fairhead purchased 480 shares of the business's stock in a transaction that occurred on Monday, July 7th. The shares were bought at an average price of $233.87 per share, for a total transaction of $112,257.60. Following the acquisition, the director owned 22,110 shares in the company, valued at $5,170,865.70. This represents a 2.22% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Michael D. Sicilia sold 15,880 shares of the stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $254.48, for a total value of $4,041,142.40. Following the transaction, the insider owned 99,212 shares in the company, valued at $25,247,469.76. This trade represents a 13.80% decrease in their position. The disclosure for this sale can be found here. Insiders sold 44,183 shares of company stock valued at $10,353,198 over the last quarter. 42.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Oracle

Several institutional investors have recently bought and sold shares of the company. Milestones Private Investment Advisors LLC acquired a new position in Oracle in the 2nd quarter valued at about $744,000. Silicon Valley Capital Partners grew its position in Oracle by 7.1% in the 2nd quarter. Silicon Valley Capital Partners now owns 74,129 shares of the enterprise software provider's stock valued at $16,207,000 after acquiring an additional 4,912 shares in the last quarter. WT Wealth Management acquired a new position in Oracle in the 2nd quarter valued at about $262,000. NWF Advisory Services Inc. grew its position in Oracle by 6.3% in the 2nd quarter. NWF Advisory Services Inc. now owns 2,596 shares of the enterprise software provider's stock valued at $568,000 after acquiring an additional 153 shares in the last quarter. Finally, Reynders McVeigh Capital Management LLC boosted its stake in shares of Oracle by 2.1% in the 2nd quarter. Reynders McVeigh Capital Management LLC now owns 21,467 shares of the enterprise software provider's stock valued at $4,693,000 after buying an additional 436 shares during the period. 42.44% of the stock is owned by institutional investors and hedge funds.

Oracle Company 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.

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