Oracle (NYSE:ORCL) Stock Price Down 2.4% - Should You Sell?

Key Points

• Oracle shares fell 2.4% on Friday, extending recent weakness as the stock has also struggled since its last earnings report despite the company beating quarterly expectations.
• The company still has a strong growth story, with a record AI backlog, expanding cloud business, and reiterated fiscal 2027 outlook supporting longer-term optimism around AI and cloud demand.
• Investor concern remains focused on Oracle’s heavy debt load and a recent S&P Global credit rating cut closer to junk, which could raise borrowing-cost risks if cash flow does not keep pace with spending.

Oracle Corporation (NYSE:ORCL - Get Free Report) shares dropped 2.4% on Friday . The company traded as low as $139.26 and last traded at $140.6870. 26,532,952 shares were traded during mid-day trading, a decline of 6% from the average session volume of 28,253,941 shares. The stock had previously closed at $144.22.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s record AI backlog and expanding cloud business continue to support the long-term growth narrative, with some analysts saying the stock still looks attractive despite the recent selloff. Article Title
• Positive Sentiment: Oracle reiterated a strong fiscal 2027 outlook, which helps reinforce optimism that cloud and AI demand can keep driving earnings growth. Article Title
• Positive Sentiment: Oracle launched new partnerships and innovation initiatives, including IMSA Labs and healthcare AI collaborations, showing continued momentum in applying OCI to new verticals. Article Title
• Positive Sentiment: Some market commentators and strategists remain bullish, arguing Oracle may be oversold and could rebound as investors refocus on AI spending trends and future earnings power. Article Title
• Neutral Sentiment: Articles on Oracle’s massive backlog note a concentration risk, suggesting the company has strong demand but still faces execution and customer-concentration questions. Article Title
• Negative Sentiment: S&P Global cut Oracle’s credit rating closer to junk, which increased concern about the company’s leverage and borrowing costs. Article Title
• Negative Sentiment: Investors are also focused on Oracle’s large debt burden, which is seen as a key risk if AI and data-center spending does not translate into cash flow quickly enough. Article Title
• Negative Sentiment: The stock has also been weak since its last earnings report, reflecting fading short-term momentum despite better-than-expected quarterly results. Article Title

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on ORCL shares. Weiss Ratings raised shares of Oracle from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, May 29th. Wedbush dropped their price objective on shares of Oracle from $275.00 to $240.00 and set an "outperform" rating for the company in a report on Thursday, June 11th. Stephens reiterated an "equal weight" rating and issued a $164.00 target price on shares of Oracle in a research report on Thursday, June 11th. Evercore reissued an "outperform" rating and issued a $245.00 target price on shares of Oracle in a research note on Monday, June 8th. Finally, Guggenheim reaffirmed a "buy" rating and set a $400.00 price target on shares of Oracle in a research note on Thursday, June 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $268.27.

Oracle Stock Down 2.4%

The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.12 and a current ratio of 1.12. The stock's 50 day moving average price is $183.53 and its 200-day moving average price is $172.08. The company has a market cap of $405.24 billion, a PE ratio of 24.13, a PEG ratio of 0.88 and a beta of 1.72.

Oracle (NYSE:ORCL - Get Free Report) last issued its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, topping analysts' consensus estimates of $1.96 by $0.15. The company had revenue of $19.18 billion for the quarter, compared to analysts' expectations of $19.10 billion. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The firm's revenue was up 20.6% compared to the same quarter last year. During the same quarter last year, the company earned $1.70 EPS. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. On average, analysts predict that Oracle Corporation will post 6.46 earnings per share for the current year.

Oracle Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, July 10th. Oracle's payout ratio is 34.31%.

Insider Activity

In other Oracle news, EVP Stuart Levey sold 15,000 shares of the business's stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $176.19, for a total value of $2,642,850.00. Following the completion of the sale, the executive vice president owned 3,429 shares in the company, valued at approximately $604,155.51. The trade was a 81.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Vice Chairman Jeffrey Henley sold 400,000 shares of the company's stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the sale, the insider owned 400,000 shares of the company's stock, valued at $63,664,000. This represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 40.90% of the company's stock.

Hedge Funds Weigh In On Oracle

Hedge funds have recently modified their holdings of the company. HFM Investment Advisors LLC increased its holdings in Oracle by 290.9% during the 4th quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider's stock valued at $25,000 after purchasing an additional 96 shares during the period. Basepoint Wealth LLC bought a new stake in shares of Oracle in the 4th quarter worth approximately $26,000. FSA Wealth Management LLC bought a new stake in shares of Oracle in the 3rd quarter worth approximately $28,000. Osbon Capital Management LLC purchased a new position in shares of Oracle during the fourth quarter valued at approximately $28,000. Finally, Joseph Group Capital Management purchased a new position in shares of Oracle during the fourth quarter valued at approximately $29,000. Hedge funds and other institutional investors own 42.44% of the company's stock.

About Oracle

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle's product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.

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