Oracle (NYSE:ORCL) Shares Down 4% - Here's What Happened

Key Points

• Oracle's stock price fell 4% during mid-day trading on Tuesday, closing at $314.90, down from a previous close of $328.15, with trading volume significantly increasing.
• Analysts have raised their price targets for Oracle, with ratings ranging from "Strong Buy" to "Sector Perform," highlighting strong market confidence, even as the company missed quarterly earnings expectations.
• Oracle announced a quarterly dividend of $0.50, representing a 0.6% yield, with a payout ratio of 46.30%, aimed at providing returns to shareholders.

Oracle Corporation (NYSE:ORCL - Get Free Report)'s stock price traded down 4% during mid-day trading on Tuesday . The company traded as low as $310.05 and last traded at $314.90. 34,448,401 shares changed hands during mid-day trading, an increase of 141% from the average session volume of 14,280,512 shares. The stock had previously closed at $328.15.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. JPMorgan Chase & Co. upped their price objective on shares of Oracle from $185.00 to $210.00 and gave the company a "neutral" rating in a research note on Monday, September 8th. Mizuho increased their price target on shares of Oracle from $300.00 to $350.00 and gave the stock an "outperform" rating in a research note on Wednesday, September 10th. Royal Bank Of Canada increased their target price on Oracle from $145.00 to $195.00 and gave the stock a "sector perform" rating in a research report on Thursday, June 12th. Oppenheimer reissued an "outperform" rating on shares of Oracle in a research report on Wednesday, June 18th. Finally, Barclays raised their price objective on Oracle from $221.00 to $281.00 and gave the stock an "overweight" rating in a report on Monday, September 8th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $305.75.

Oracle Trading Down 4.0%

The business's 50-day simple moving average is $253.63 and its two-hundred day simple moving average is $196.92. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 3.33. The company has a market capitalization of $894.84 billion, a PE ratio of 72.89, a PEG ratio of 3.34 and a beta of 1.46.

Oracle (NYSE:ORCL - Get Free Report) last issued its quarterly earnings results on Tuesday, September 9th. The enterprise software provider reported $1.47 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.48 by ($0.01). Oracle had a return on equity of 72.93% and a net margin of 21.08%.The company had revenue of $14.93 billion during the quarter, compared to the consensus estimate of $15.04 billion. During the same quarter last year, the firm posted $1.39 EPS. The firm's quarterly revenue was up 12.2% on a year-over-year basis. Oracle has set its Q2 2026 guidance at 1.270-1.310 EPS. On average, analysts predict that Oracle Corporation will post 5 earnings per share for the current year.

Oracle Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 23rd. Shareholders of record on Thursday, October 9th will be given a $0.50 dividend. The ex-dividend date of this dividend is Thursday, October 9th. This represents a $2.00 annualized dividend and a yield of 0.6%. Oracle's dividend payout ratio (DPR) is currently 46.30%.

Insider Buying and Selling at Oracle

In related news, Director William G. Parrett sold 11,500 shares of the stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $306.00, for a total value of $3,519,000.00. Following the sale, the director owned 17,764 shares of the company's stock, valued at $5,435,784. This trade represents a 39.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Michael D. Sicilia sold 16,323 shares of Oracle stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $313.60, for a total transaction of $5,118,892.80. Following the completion of the sale, the insider owned 110,094 shares in the company, valued at approximately $34,525,478.40. This represents a 12.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 78,247 shares of company stock valued at $22,090,505. Corporate insiders own 42.20% of the company's stock.

Hedge Funds Weigh In On Oracle

Several large investors have recently made changes to their positions in ORCL. GatePass Capital LLC bought a new position in shares of Oracle in the second quarter valued at $240,000. Caldwell Trust Co acquired a new stake in shares of Oracle during the second quarter worth $5,546,000. Watts Gwilliam & Co. LLC acquired a new position in shares of Oracle in the 2nd quarter valued at $283,000. Canal Capital Management LLC increased its stake in Oracle by 14.6% in the 2nd quarter. Canal Capital Management LLC now owns 1,919 shares of the enterprise software provider's stock worth $420,000 after purchasing an additional 245 shares in the last quarter. Finally, Valeo Financial Advisors LLC raised its holdings in Oracle by 5.0% during the 2nd quarter. Valeo Financial Advisors LLC now owns 95,299 shares of the enterprise software provider's stock worth $20,835,000 after buying an additional 4,512 shares during the period. Institutional investors own 42.44% of the company's stock.

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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