Oracle (NYSE:ORCL) Shares Gap Up Following Earnings Beat

Oracle Co. (NYSE:ORCL - Get Free Report) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $176.38, but opened at $189.96. Oracle shares last traded at $196.88, with a volume of 11,820,192 shares.

The enterprise software provider reported $1.70 earnings per share for the quarter, topping analysts' consensus estimates of $1.64 by $0.06. Oracle had a return on equity of 133.25% and a net margin of 21.16%. The firm had revenue of $15.90 billion during the quarter, compared to analysts' expectations of $15.58 billion. During the same period in the prior year, the business posted $1.63 EPS. The firm's quarterly revenue was up 11.3% on a year-over-year basis.

Oracle Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 24th. Shareholders of record on Thursday, July 10th will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 1.00%. The ex-dividend date of this dividend is Thursday, July 10th. Oracle's payout ratio is 46.95%.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of Oracle from a "buy" rating to a "hold" rating in a research report on Wednesday, February 19th. Royal Bank of Canada increased their target price on shares of Oracle from $145.00 to $195.00 and gave the company a "sector perform" rating in a research report on Thursday. Piper Sandler reaffirmed a "neutral" rating and issued a $130.00 price target on shares of Oracle in a report on Wednesday. Morgan Stanley reaffirmed a "positive" rating on shares of Oracle in a research report on Monday. Finally, DA Davidson raised their price objective on Oracle from $140.00 to $170.00 and gave the stock a "neutral" rating in a research report on Thursday. Twelve equities research analysts have rated the stock with a hold rating, eighteen have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, Oracle presently has a consensus rating of "Moderate Buy" and a consensus price target of $192.30.

Insider Activity

In other news, Director Leon E. Panetta sold 17,500 shares of the business's stock in a transaction dated Friday, May 2nd. The stock was sold at an average price of $151.24, for a total value of $2,646,700.00. Following the completion of the transaction, the director now owns 58,090 shares of the company's stock, valued at $8,785,531.60. The trade was a 23.15% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Naomi O. Seligman sold 2,000 shares of the firm's stock in a transaction dated Wednesday, April 2nd. The stock was sold at an average price of $145.81, for a total value of $291,620.00. Following the sale, the director now directly owns 34,630 shares in the company, valued at approximately $5,049,400.30. This trade represents a 5.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 27,366 shares of company stock valued at $4,015,723 in the last ninety days. Insiders own 42.20% of the company's stock.

Institutional Investors Weigh In On Oracle

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new stake in Oracle during the fourth quarter valued at $2,216,314,000. Raymond James Financial Inc. acquired a new position in shares of Oracle in the fourth quarter worth about $930,095,000. Nuveen LLC purchased a new stake in shares of Oracle during the 1st quarter worth about $732,692,000. GAMMA Investing LLC boosted its stake in shares of Oracle by 15,012.3% during the 1st quarter. GAMMA Investing LLC now owns 4,755,096 shares of the enterprise software provider's stock worth $664,810,000 after acquiring an additional 4,723,631 shares in the last quarter. Finally, Vanguard Group Inc. grew its position in shares of Oracle by 2.2% during the 1st quarter. Vanguard Group Inc. now owns 160,925,413 shares of the enterprise software provider's stock valued at $22,498,982,000 after acquiring an additional 3,513,464 shares during the period. Institutional investors and hedge funds own 42.44% of the company's stock.

Oracle Trading Up 13.2%

The company has a debt-to-equity ratio of 5.65, a quick ratio of 0.81 and a current ratio of 0.81. The company has a 50 day moving average of $149.60 and a two-hundred day moving average of $160.36. The stock has a market cap of $558.47 billion, a PE ratio of 48.82, a price-to-earnings-growth ratio of 3.46 and a beta of 1.32.

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.