Oracle (NYSE:ORCL) Shares Down 1% - Should You Sell?

Key Points

• Oracle's stock price decreased by 1% during mid-day trading, reaching $253.85, with trading volume declining significantly by 72% compared to its average.
• Several analysts have upgraded Oracle's stock ratings recently, including Citigroup raising it to a "strong-buy" and Piper Sandler increasing the price target to $270.00.
• Oracle's quarterly earnings report revealed an EPS of $1.70, beating estimates and showing a revenue increase of 11.3% year-over-year, with shareholders recently receiving a quarterly dividend of $0.50.

Oracle Corporation (NYSE:ORCL - Get Free Report)'s stock price dropped 1% during mid-day trading on Thursday . The stock traded as low as $253.78 and last traded at $253.85. Approximately 3,339,587 shares changed hands during trading, a decline of 72% from the average daily volume of 12,008,473 shares. The stock had previously closed at $256.43.

Analyst Ratings Changes

A number of equities research analysts have weighed in on ORCL shares. Citigroup raised Oracle from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 18th. Loop Capital set a $135.00 price target on Oracle in a research note on Tuesday, June 10th. KeyCorp upped their price target on shares of Oracle from $200.00 to $225.00 and gave the company an "overweight" rating in a report on Thursday, June 12th. CIBC reissued a "buy" rating on shares of Oracle in a report on Monday, June 9th. Finally, Piper Sandler upgraded Oracle from a "neutral" rating to an "overweight" rating and lifted their price target for the company from $190.00 to $270.00 in a research report on Thursday, July 10th. Nine analysts have rated the stock with a hold rating, twenty-three have given a buy rating and three have given a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $222.75.

Oracle Stock Performance

The firm has a market capitalization of $700.48 billion, a PE ratio of 57.46, a price-to-earnings-growth ratio of 3.81 and a beta of 1.43. 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 stock has a 50-day moving average price of $219.21 and a 200-day moving average price of $176.71.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings data on Wednesday, June 11th. The enterprise software provider reported $1.70 EPS for the quarter, beating analysts' consensus estimates of $1.64 by $0.06. Oracle had a net margin of 21.68% and a return on equity of 87.34%. The firm had revenue of $15.90 billion for the quarter, compared to the consensus estimate of $15.58 billion. During the same period in the prior year, the firm posted $1.63 EPS. The firm's revenue was up 11.3% compared to the same quarter last year. On average, research analysts expect that Oracle Corporation will post 5 EPS for the current fiscal year.

Oracle Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 24th. Shareholders of record on Thursday, July 10th were given a $0.50 dividend. The ex-dividend date of this dividend was Thursday, July 10th. This represents a $2.00 annualized dividend and a yield of 0.8%. Oracle's dividend payout ratio (DPR) is currently 46.08%.

Insider Buying and Selling at Oracle

In related 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 transaction, the insider directly owned 60,722 shares of the company's stock, valued at $13,000,580.20. The trade was a 19.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Maria Smith sold 10,000 shares of the stock in a transaction on 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 owned 40,807 shares of the company's stock, valued at $9,507,622.93. This trade represents a 19.68% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 428,303 shares of company stock valued at $82,480,056. Corporate insiders own 42.20% of the company's stock.

Hedge Funds Weigh In On Oracle

A number of institutional investors have recently bought and sold shares of ORCL. LGT Financial Advisors LLC purchased a new stake in Oracle in the 2nd quarter worth about $33,000. Legend Financial Advisors Inc. bought a new position in Oracle during the second quarter valued at approximately $34,000. HighMark Wealth Management LLC bought a new stake in Oracle in the second quarter worth approximately $38,000. Sunbeam Capital Management LLC bought a new position in shares of Oracle during the 4th quarter valued at $30,000. Finally, Moser Wealth Advisors LLC boosted its holdings in Oracle by 1,770.0% in the second quarter. Moser Wealth Advisors LLC now owns 187 shares of the enterprise software provider's stock worth $41,000 after purchasing an additional 177 shares in the last quarter. Hedge funds and other institutional investors own 42.44% of the company's stock.

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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