Oracle (NYSE:ORCL) Stock Price Up 2.4% - Time to Buy?

Key Points

• Oracle shares rose 2.4% to $146.93, but remain below their 50-day and 200-day moving averages. The company’s latest quarter beat estimates, with revenue up 20.6% year over year to $19.18 billion and EPS of $2.11.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $263.97. However, UBS cut its target to $245, citing concerns about AI infrastructure spending, returns on investment, credit conditions and Oracle’s OpenAI exposure.
• Oracle’s aggressive, debt-funded AI data-center expansion is the key investment risk. Higher financing costs, potential credit-rating pressure and weaker cash returns could limit the profitability of its AI growth, while investor Michael Burry’s reported short position adds to negative sentiment.

Oracle Corporation (NYSE:ORCL - Get Free Report)'s share price rose 2.4% during trading on Friday . The stock traded as high as $147.16 and last traded at $146.93. 21,981,880 shares traded hands during trading, a decline of 25% from the average daily volume of 29,481,105 shares. The stock had previously closed at $143.47.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s record backlog, cloud ERP growth and database software demand continue to support expectations for strong revenue expansion. Its latest quarter also exceeded consensus estimates for both earnings and revenue, with sales increasing 20.6% year over year. Oracle leans on record backlog as cloud and AI rally builds
• Positive Sentiment: Some analysts remain bullish, arguing that Oracle’s AI infrastructure investments could translate into substantial future cloud growth. Wall Street’s consensus target implies significant upside from current levels, although investors want clearer evidence that demand will produce attractive profits. What Larry Ellison needs to do to convince investors Oracle stock is still a buy
• Neutral Sentiment: UBS maintained a Buy rating but reduced its Oracle price target to $245 from $285. The revision reflects concerns about AI infrastructure spending, returns on invested capital, credit-market conditions and Oracle’s exposure to OpenAI. Oracle price target lowered by UBS amid AI spending concerns
• Negative Sentiment: Oracle’s aggressive, debt-funded data-center buildout is raising fears of credit-rating pressure, higher financing costs and weaker cash returns. The central investment risk is that record AI demand may be expensive to serve, compressing margins and reducing the payoff from capital expenditures. Borrowing to the brink: How Oracle’s AI expansion put its credit rating on life support
• Negative Sentiment: Investor Michael Burry reportedly reopened a short position in Oracle, betting that AI-related technology stocks and data-center spending look overvalued. The high-profile trade may add to negative sentiment, though it does not change Oracle’s underlying operating results. Michael Burry says he’s shorting AI stars Oracle and Nebius

Analysts Set New Price Targets

ORCL has been the subject of several recent analyst reports. Piper Sandler upped their target price on Oracle from $210.00 to $225.00 and gave the company an "overweight" rating in a report on Thursday, June 11th. TD Cowen lifted their price target on Oracle from $250.00 to $300.00 and gave the stock a "buy" rating in a report on Monday, June 8th. Evercore reissued an "outperform" rating and issued a $245.00 price objective on shares of Oracle in a research report on Monday, June 8th. BTIG Research restated a "buy" rating and issued a $400.00 price objective on shares of Oracle in a research note on Friday, June 5th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and set a $284.00 target price on shares of Oracle in a research report on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $263.97.

Oracle Stock Up 2.4%

The stock's 50-day moving average price is $159.80 and its two-hundred day moving average price is $162.72. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 3.21. The stock has a market capitalization of $423.23 billion, a P/E ratio of 25.20, a P/E/G ratio of 0.91 and a beta of 1.72.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly 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. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The company had revenue of $19.18 billion for the quarter, compared to analysts' expectations of $19.10 billion. During the same quarter in the previous year, the firm posted $1.70 EPS. Oracle's revenue was up 20.6% on a year-over-year basis. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, research analysts expect that Oracle Corporation will post 6.47 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were paid a $0.50 dividend. The ex-dividend date was Friday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. Oracle's payout ratio is presently 34.31%.

Insider Activity at Oracle

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the completion of the transaction, the insider owned 400,000 shares in the company, valued at approximately $63,664,000. This represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Oracle

Several institutional investors have recently added to or reduced their stakes in ORCL. Occidental Asset Management LLC bought a new position in Oracle during the second quarter worth about $928,000. Dunhill Financial LLC bought a new stake in shares of Oracle in the second quarter valued at approximately $83,000. Pallas Capital Advisors LLC bought a new stake in shares of Oracle in the second quarter valued at approximately $6,432,000. Performance Wealth Partners LLC purchased a new stake in shares of Oracle during the 2nd quarter valued at approximately $242,000. Finally, Perigon Wealth Management LLC purchased a new stake in shares of Oracle during the 2nd quarter valued at approximately $5,884,000. 42.44% of the stock is owned by hedge funds and other institutional investors.

Oracle Company Profile

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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