Oracle (NYSE:ORCL) Stock Price Down 1.7% - Should You Sell?

Key Points

• Oracle's stock price fell by 1.7% to close at $230.73, with trading volume decreasing by 67% compared to its average daily volume.
• Analysts are generally positive, with a consensus rating of "Moderate Buy" and an average target price of $227.04, while recent earnings showed a 11.3% increase in revenue year-over-year.
• Oracle declared a quarterly dividend of $0.50 per share, representing an annual yield of 0.9%, indicating the company’s effort to return value to shareholders.

Shares of Oracle Corporation (NYSE:ORCL - Get Free Report) dropped 1.7% during trading on Wednesday . The company traded as low as $228.25 and last traded at $230.73. Approximately 4,002,909 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 11,955,606 shares. The stock had previously closed at $234.62.

Wall Street Analyst Weigh In

ORCL has been the subject of a number of recent analyst reports. Oppenheimer reiterated an "outperform" rating on shares of Oracle in a research note on Wednesday, June 18th. JMP Securities raised their target price on shares of Oracle from $240.00 to $315.00 and gave the stock a "market outperform" rating in a research note on Friday, July 18th. Roth Capital reissued a "hold" rating on shares of Oracle in a report on Wednesday, June 18th. Westpark Capital lifted their price target on shares of Oracle from $195.00 to $246.00 and gave the company a "buy" rating in a report on Thursday, June 12th. Finally, The Goldman Sachs Group reiterated a "neutral" rating and set a $195.00 target price (up from $145.00) on shares of Oracle in a research report on Friday, June 13th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, Oracle currently has an average rating of "Moderate Buy" and an average target price of $227.04.

Oracle Stock Down 0.5%

The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 4.07. The stock's 50-day moving average is $233.11 and its 200-day moving average is $181.51. The company has a market cap of $656.00 billion, a price-to-earnings ratio of 53.82, a P/E/G ratio of 3.72 and a beta of 1.43.

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

Oracle Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 24th. Shareholders of record on Thursday, July 10th were paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Thursday, July 10th. Oracle's payout ratio is 46.08%.

Insider Transactions at Oracle

In related news, insider Michael D. Sicilia sold 15,880 shares of the business's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $254.48, for a total value of $4,041,142.40. Following the transaction, the insider directly owned 99,212 shares of the company's stock, valued at approximately $25,247,469.76. The trade was a 13.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Maria Smith sold 10,000 shares of the company's stock in a transaction dated Thursday, July 3rd. The shares were sold at an average price of $232.99, for a total transaction of $2,329,900.00. Following the sale, the executive vice president directly owned 40,807 shares in the company, valued at approximately $9,507,622.93. This trade represents a 19.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 444,183 shares of company stock worth $86,521,198. 42.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted its holdings in Oracle by 2.1% in the 2nd quarter. Vanguard Group Inc. now owns 164,278,874 shares of the enterprise software provider's stock worth $35,916,290,000 after buying an additional 3,353,461 shares during the period. State Street Corp lifted its holdings in shares of Oracle by 1.7% in the second quarter. State Street Corp now owns 73,459,391 shares of the enterprise software provider's stock worth $16,060,427,000 after buying an additional 1,252,723 shares in the last quarter. Northern Trust Corp lifted its holdings in shares of Oracle by 0.6% in the first quarter. Northern Trust Corp now owns 19,741,423 shares of the enterprise software provider's stock worth $2,760,048,000 after buying an additional 120,889 shares in the last quarter. Norges Bank purchased a new stake in shares of Oracle in the second quarter worth about $4,275,378,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Oracle by 0.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 13,884,524 shares of the enterprise software provider's stock worth $1,941,195,000 after buying an additional 59,164 shares in the last quarter. 42.44% of the stock is owned by institutional investors.

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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