Oracle (NYSE:ORCL) Stock Price Down 4.5% - Here's What Happened

Key Points

• Oracle's stock price declined by 4.5%, closing at $313.66 after trading as low as $317.56, with trading volume down 29% from its average.
• Analysts remain optimistic, with multiple firms raising their price targets significantly, including Barclays to $281 and Melius Research to $370, reflecting a consensus average target of $296.84.
• Oracle has announced a quarterly dividend of $0.50, which equates to a 0.6% dividend yield, with a payout ratio currently at 46.08%.

Oracle Corporation (NYSE:ORCL - Get Free Report)'s share price fell 4.5% on Thursday . The stock traded as low as $317.56 and last traded at $313.66. 9,089,560 shares changed hands during mid-day trading, a decline of 29% from the average session volume of 12,769,608 shares. The stock had previously closed at $328.33.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Barclays upped their price target on shares of Oracle from $221.00 to $281.00 and gave the company an "overweight" rating in a research report on Monday. UBS Group set a $300.00 price target on shares of Oracle in a research report on Wednesday. Oppenheimer reaffirmed an "outperform" rating on shares of Oracle in a research report on Wednesday, June 18th. Melius Research upped their price target on shares of Oracle from $270.00 to $370.00 and gave the company a "buy" rating in a research report on Wednesday. Finally, Jefferies Financial Group upped their price target on shares of Oracle from $270.00 to $360.00 and gave the company a "buy" rating in a research report on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $296.84.

Oracle Stock Down 4.3%

The company has a debt-to-equity ratio of 4.07, a quick ratio of 0.75 and a current ratio of 0.75. The company has a market cap of $882.15 billion, a price-to-earnings ratio of 72.65, a price-to-earnings-growth ratio of 3.61 and a beta of 1.46. The stock's fifty day moving average is $242.19 and its two-hundred day moving average is $188.57.

Oracle (NYSE:ORCL - Get Free Report) last posted its earnings results on Wednesday, June 11th. The enterprise software provider reported $1.70 earnings per share for the quarter, topping analysts' consensus estimates of $1.64 by $0.06. Oracle had a net margin of 21.08% and a return on equity of 80.42%. The company had revenue of $15.90 billion for the quarter, compared to analyst estimates of $15.58 billion. During the same quarter in the prior year, the business posted $1.63 EPS. The firm's revenue was up 11.3% compared to the same quarter last year. Sell-side analysts predict that Oracle Corporation will post 5 earnings per share for the current fiscal year.

Oracle Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 23rd. Investors of record on Thursday, October 9th will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Thursday, October 9th. Oracle's dividend payout ratio is currently 46.08%.

Insider Buying and Selling

In related news, insider Michael D. Sicilia sold 15,880 shares of the company'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 sale, 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 transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Naomi O. Seligman sold 3,303 shares of the company's stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $233.32, for a total transaction of $770,655.96. Following the completion of the sale, the director directly owned 31,447 shares of the company's stock, valued at $7,337,214.04. The trade was a 9.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 44,183 shares of company stock worth $10,353,198 over the last ninety days. Insiders own 42.20% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. WT Wealth Management bought a new position in shares of Oracle during the 2nd quarter valued at approximately $262,000. NWF Advisory Services Inc. grew its position in shares of Oracle by 6.3% during the 2nd quarter. NWF Advisory Services Inc. now owns 2,596 shares of the enterprise software provider's stock valued at $568,000 after acquiring an additional 153 shares during the period. Reynders McVeigh Capital Management LLC grew its position in shares of Oracle by 2.1% during the 2nd quarter. Reynders McVeigh Capital Management LLC now owns 21,467 shares of the enterprise software provider's stock valued at $4,693,000 after acquiring an additional 436 shares during the period. American Trust bought a new position in shares of Oracle during the 2nd quarter valued at approximately $319,000. Finally, PVG Asset Management Corp bought a new position in shares of Oracle during the 2nd quarter valued at approximately $203,000. 42.44% of the stock is owned by institutional investors.

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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