Oracle (NYSE:ORCL) Stock Price Down 1.2% - Here's What Happened

Key Points

• Oracle's stock price fell 1.2% on Wednesday, averaging $252.58 after a significant decline in trading volume, which decreased 77% from the average session.
• Research analysts have optimistic views on Oracle, with 23 buy ratings and a recent upgrade to a "strong-buy" from Citigroup, while the average price target is set at $222.75.
• The company reported financial growth, achieving $1.70 EPS in its last quarter, beating estimates and displaying an 11.3% year-over-year revenue increase to $15.90 billion.

Shares of Oracle Corporation (NYSE:ORCL - Get Free Report) traded down 1.2% on Wednesday . The company traded as low as $251.72 and last traded at $252.58. 2,802,258 shares changed hands during mid-day trading, a decline of 77% from the average session volume of 12,019,852 shares. The stock had previously closed at $255.67.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. Citigroup raised Oracle from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 18th. Cowen reaffirmed a "buy" rating on shares of Oracle in a research note on Thursday, June 12th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $195.00 price objective (up previously from $145.00) on shares of Oracle in a research note on Friday, June 13th. Jefferies Financial Group raised their price objective on Oracle from $190.00 to $200.00 and gave the stock a "buy" rating in a research note on Monday, June 9th. Finally, Royal Bank Of Canada raised their price objective on Oracle from $145.00 to $195.00 and gave the stock a "sector perform" rating in a research note on Thursday, June 12th. 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 company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $222.75.

Oracle Trading Down 0.1%

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's 50-day moving average price is $217.36 and its two-hundred day moving average price is $176.15. The company has a market capitalization of $717.32 billion, a price-to-earnings ratio of 58.84, a P/E/G ratio of 3.77 and a beta of 1.43.

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

Oracle Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 24th. Investors of record on Thursday, July 10th were issued 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 payout ratio is presently 46.08%.

Insiders Place Their Bets

In other news, Director Rona Alison Fairhead bought 480 shares of the company's stock in a transaction that occurred on Monday, July 7th. The shares were acquired at an average price of $233.87 per share, for a total transaction of $112,257.60. Following the completion of the acquisition, the director directly owned 22,110 shares in the company, valued at approximately $5,170,865.70. This represents a 2.22% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Clayton M. Magouyrk sold 15,000 shares of the business's stock in a transaction on Tuesday, June 17th. The shares were sold at an average price of $214.10, for a total transaction of $3,211,500.00. Following the completion of the transaction, the insider owned 60,722 shares in the company, valued at approximately $13,000,580.20. The trade was a 19.81% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 428,303 shares of company stock valued at $82,480,056 over the last quarter. Company insiders own 42.20% of the company's stock.

Institutional Investors Weigh In On Oracle

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Redmont Wealth Advisors LLC bought a new position in shares of Oracle during the 1st quarter valued at approximately $27,000. Inlight Wealth Management LLC bought a new position in Oracle in the 1st quarter valued at $28,000. Iron Horse Wealth Management LLC boosted its holdings in Oracle by 284.9% in the 1st quarter. Iron Horse Wealth Management LLC now owns 204 shares of the enterprise software provider's stock valued at $29,000 after purchasing an additional 151 shares during the period. Sunbeam Capital Management LLC purchased a new stake in shares of Oracle during the 4th quarter valued at $30,000. Finally, LGT Financial Advisors LLC purchased a new stake in shares of Oracle during the 2nd quarter valued at $33,000. Institutional investors and hedge funds 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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