Oracle (NYSE:ORCL) Stock Price Down 4% - Should You Sell?

Key Points

• Oracle's stock fell by 4% to $239.07, with trading volume dropping 68% compared to its average.
• Analysts have raised price targets for Oracle, with UBS Group's target increased from $250 to $280, and Mizuho's target from $245 to $300, highlighting strong buy ratings from multiple firms.
• The company declared a quarterly dividend of $0.50 per share, providing an annualized yield of 0.8%, with a dividend payout ratio of 46.08%.

Shares of Oracle Corporation (NYSE:ORCL - Get Free Report) were down 4% on Tuesday . The stock traded as low as $238.88 and last traded at $239.07. Approximately 3,855,276 shares changed hands during mid-day trading, a decline of 68% from the average daily volume of 11,918,951 shares. The stock had previously closed at $249.07.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the company. UBS Group upped their price target on Oracle from $250.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, July 17th. Raymond James Financial restated a "strong-buy" rating on shares of Oracle in a research report on Wednesday, June 18th. Loop Capital set a $135.00 price target on Oracle in a report on Tuesday, June 10th. Royal Bank Of Canada raised their price target on Oracle from $145.00 to $195.00 and gave the company a "sector perform" rating in a report on Thursday, June 12th. Finally, Mizuho raised their price objective on Oracle from $245.00 to $300.00 and gave the company an "outperform" rating in a research note on Friday. Three research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, Oracle currently has an average rating of "Moderate Buy" and an average price target of $227.04.

Oracle Stock Down 4.6%

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 $231.98 and a 200 day simple moving average of $181.14. The company has a market capitalization of $667.18 billion, a price-to-earnings ratio of 54.73, a PEG ratio of 3.71 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 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.64 by $0.06. The business had revenue of $15.90 billion for the quarter, compared to analysts' expectations of $15.58 billion. Oracle had a return on equity of 87.34% and a net margin of 21.68%.The company's revenue for the quarter was up 11.3% compared to the same quarter last year. During the same period last year, the firm earned $1.63 earnings per share. As a group, equities analysts predict that Oracle Corporation will post 5 earnings per share for the current fiscal year.

Oracle Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, July 24th. Stockholders of record on Thursday, July 10th were given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Thursday, July 10th. Oracle's dividend payout ratio (DPR) is presently 46.08%.

Insider Activity at Oracle

In related news, insider Clayton M. Magouyrk sold 15,000 shares of the company'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 sale, the insider directly owned 60,722 shares of the company's stock, valued at approximately $13,000,580.20. This represents a 19.81% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Michael D. Sicilia sold 15,880 shares of the business's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $254.48, for a total transaction of $4,041,142.40. Following the completion of the transaction, the insider owned 99,212 shares in the company, valued at $25,247,469.76. This represents a 13.80% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 444,183 shares of company stock worth $86,521,198. 42.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Oracle

Several institutional investors and hedge funds have recently modified their holdings of the business. Redmont Wealth Advisors LLC acquired a new position in shares of Oracle during the first quarter valued at about $27,000. Inlight Wealth Management LLC acquired a new position in shares of Oracle during the first quarter worth approximately $28,000. Winnow Wealth LLC bought a new position in Oracle in the 2nd quarter valued at $28,000. Iron Horse Wealth Management LLC lifted its holdings in Oracle by 284.9% in the first quarter. Iron Horse Wealth Management LLC now owns 204 shares of the enterprise software provider's stock valued at $29,000 after buying an additional 151 shares during the period. Finally, Sunbeam Capital Management LLC acquired a new stake in Oracle in the fourth quarter worth $30,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.