Oracle (NYSE:ORCL) Trading 1.3% Higher - Here's Why

Key Points

• Oracle shares rose 1.3% during Thursday's trading, reaching a high of $248.92 before closing at $247.39, although trading volume decreased by 73% compared to the average.
• Several analysts have increased their price targets for Oracle, with BMO Capital raising theirs to $245.00 and Jefferies increasing theirs to $200.00, contributing to a current average target of $222.75.
• Oracle recently announced a quarterly dividend of $0.50 per share, reflecting an annual yield of 0.8%, while insiders sold over 444,000 shares in the past ninety days.

Oracle Corporation (NYSE:ORCL - Get Free Report) shares shot up 1.3% during mid-day trading on Thursday . The stock traded as high as $248.92 and last traded at $247.39. 3,206,438 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 11,966,066 shares. The stock had previously closed at $244.18.

Analyst Ratings Changes

Several brokerages have issued reports on ORCL. Royal Bank Of Canada lifted their price objective on Oracle from $145.00 to $195.00 and gave the company a "sector perform" rating in a research report on Thursday, June 12th. Jefferies Financial Group lifted their price objective on Oracle from $190.00 to $200.00 and gave the company a "buy" rating in a research report on Monday, June 9th. Scotiabank assumed coverage on Oracle in a research report on Thursday, July 17th. They set a "sector outperform" rating and a $300.00 target price for the company. Citigroup upgraded Oracle from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 18th. Finally, CIBC restated a "buy" rating on shares of Oracle in a research report on Monday, June 9th. Nine equities research analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and three have given a strong buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $227.04.

Oracle Trading Up 1.4%

The stock has a market capitalization of $697.94 billion, a price-to-earnings ratio of 57.25, a PEG ratio of 3.66 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 business has a 50 day simple moving average of $230.54 and a 200-day simple moving average of $180.39.

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

Oracle Dividend Announcement

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

Insider Transactions at Oracle

In other Oracle news, Director Naomi O. Seligman sold 3,303 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $233.32, for a total value of $770,655.96. Following the sale, the director owned 31,447 shares in the company, valued at $7,337,214.04. This represents a 9.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Rona Alison Fairhead acquired 480 shares of the company's stock in a transaction on Monday, July 7th. The stock was acquired at an average price of $233.87 per share, for a total transaction of $112,257.60. Following the purchase, the director directly owned 22,110 shares of the company's stock, valued at approximately $5,170,865.70. This trade represents a 2.22% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders have sold 444,183 shares of company stock valued at $86,521,198. Company insiders own 42.20% of the company's stock.

Hedge Funds Weigh In On Oracle

Several institutional investors and hedge funds have recently made changes to their positions in ORCL. Redmont Wealth Advisors LLC acquired a new position in shares of Oracle in the first quarter valued at approximately $27,000. Inlight Wealth Management LLC acquired a new stake in Oracle during the first quarter worth approximately $28,000. Winnow Wealth LLC acquired a new stake in Oracle during the second quarter worth approximately $28,000. Iron Horse Wealth Management LLC grew its position in Oracle by 284.9% during the first quarter. Iron Horse Wealth Management LLC now owns 204 shares of the enterprise software provider's stock worth $29,000 after buying an additional 151 shares in the last quarter. Finally, Sunbeam Capital Management LLC acquired a new stake in Oracle during the fourth quarter worth approximately $30,000. Institutional investors and hedge funds 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.