Oracle (NYSE:ORCL) Shares Down 2.5% Following Insider Selling

Key Points

• Oracle shares fell 2.5% after Vice Chairman Jeffrey Henley sold 400,000 shares in a pre-arranged Rule 10b5-1 transaction worth about $63.7 million.
• Despite the stock dip, analysts remain broadly bullish on Oracle, with an average rating of “Moderate Buy” and an average target price of $268.27.
• Recent company updates point to continued growth potential, including a record $638 billion backlog, strong quarterly results, and new AI-related partnerships such as Oracle Health’s deal with Theator.

Oracle Corporation (NYSE:ORCL - Get Free Report)'s stock price dropped 2.5% during trading on Friday after an insider sold shares in the company. The stock traded as low as $148.00 and last traded at $148.68. 35,951,163 shares were traded during mid-day trading, an increase of 31% from the average daily volume of 27,531,395 shares. The stock had previously closed at $152.46.

Specifically, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the sale, the insider owned 400,000 shares in the company, valued at $63,664,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Evercore restated an "outperform" rating and issued a $245.00 target price on shares of Oracle in a research note on Monday, June 8th. Oppenheimer upped their price objective on shares of Oracle from $235.00 to $275.00 and gave the company an "outperform" rating in a research report on Monday, June 8th. Stephens restated an "equal weight" rating and set a $164.00 target price on shares of Oracle in a research note on Thursday, June 11th. BMO Capital Markets lifted their target price on Oracle from $200.00 to $220.00 and gave the stock an "outperform" rating in a research report on Thursday, June 11th. Finally, Barclays boosted their price target on Oracle from $240.00 to $250.00 and gave the stock an "overweight" rating in a research note on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Oracle presently has an average rating of "Moderate Buy" and an average target price of $268.27.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s record $638 billion backlog continues to support long-term revenue visibility, suggesting demand for its cloud infrastructure and AI services remains strong. Oracle's Contract Backlog Swells: Is Long-Term Revenue Growth Secured?
• Positive Sentiment: Oracle Health announced a partnership with Theator to automate surgical reporting using AI and Oracle Cloud Infrastructure, highlighting new real-world use cases for its AI platform. Oracle Health (ORCL), Theator Partner to Automate Surgical Reporting with AI
• Neutral Sentiment: Wall Street sentiment remains broadly positive, with one article citing 36 buy ratings and a view that Oracle could have significant upside if AI demand continues to compound. Wall Street Has 36 Buy Ratings on Oracle. Here’s How We See 47% Upside
• Negative Sentiment: OpenAI IPO delay fears added to the AI sector selloff, weighing on Oracle along with other AI-linked names as investors reassessed near-term enthusiasm for the trade. OpenAI May Push Back Highly-Anticipated IPO to 2027, Slamming SoftBank and Oracle Shares
• Negative Sentiment: Bearish commentary also focused on Oracle’s aggressive AI spending and job cuts, with critics arguing the company is becoming more capital intensive while trying to justify its valuation. Oracle's AI Spend Outruns Cloud Revenues: What's Ahead for the Stock?

Oracle Stock Performance

The company has a market capitalization of $428.27 billion, a price-to-earnings ratio of 25.50, a price-to-earnings-growth ratio of 0.99 and a beta of 1.65. The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.35 and a current ratio of 1.12. The company's fifty day simple moving average is $189.96 and its two-hundred day simple moving average is $175.88.

Oracle (NYSE:ORCL - Get Free Report) last released its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, topping the consensus estimate of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The company had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter in the previous year, the firm earned $1.70 EPS. The company's revenue 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. Equities research analysts predict that Oracle Corporation will post 6.46 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a dividend of $0.50 per share. The ex-dividend date is Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 1.3%. Oracle's dividend payout ratio is presently 34.31%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of ORCL. HFM Investment Advisors LLC boosted its holdings in Oracle by 290.9% in the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider's stock worth $25,000 after purchasing an additional 96 shares during the period. Basepoint Wealth LLC bought a new stake in Oracle during the fourth quarter valued at $26,000. FSA Wealth Management LLC acquired a new stake in shares of Oracle during the third quarter worth $28,000. Osbon Capital Management LLC acquired a new stake in shares of Oracle during the fourth quarter worth $28,000. Finally, Joseph Group Capital Management bought a new position in shares of Oracle in the 4th quarter worth about $29,000. 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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