Oracle (NYSE:ORCL) Stock Price Up 2.7% - Still a Buy?

Key Points

• Oracle shares rose 2.7% to $145.72 on unusually heavy trading volume, driven by an expanded Google Cloud partnership involving Gemini AI and strong demand expectations for Oracle’s cloud infrastructure.
• Oracle reported a quarterly earnings and revenue beat, with revenue up 20.6% year over year. Its approximately $638 billion backlog, a 10-year $7 billion Defense Department contract, and additional customer wins provide significant future revenue visibility.
• Wall Street remains broadly bullish, with a “Moderate Buy” consensus rating and an average price target of $265.03, although Oracle carries high leverage and its shares were trading below their 50-day and 200-day moving averages.

Oracle Corporation (NYSE:ORCL - Get Free Report)'s share price rose 2.7% during mid-day trading on Tuesday . The stock traded as high as $148.70 and last traded at $145.72. 43,065,091 shares changed hands during trading, an increase of 45% from the average daily volume of 29,631,799 shares. The stock had previously closed at $141.85.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle expanded its partnership with Alphabet’s Google Cloud, including plans to integrate Google’s Gemini AI models with Oracle software. The agreement strengthens Oracle’s position in enterprise AI and was a key catalyst for the recent rally. Why Is Oracle Stock Surging on Monday?
• Positive Sentiment: Investors are encouraged by Oracle’s reported approximately $638 billion backlog, which offers substantial future revenue visibility if the company can deploy the required data-center capacity and convert commitments into earnings. A 10-year, $7 billion U.S. Department of Defense contract adds further support for long-term cloud demand. Oracle Inks 10-Year, $7 Billion Contract With DoD
• Positive Sentiment: Recent customer wins and expansions—including Oracle Health adoption by Ontario hospitals, Minor Hotels’ rollout of OPERA Cloud across 106 properties, and Oracle’s role in a nearly $400 million federal HR modernization program—provide evidence of continued cloud and industry-software demand.
• Positive Sentiment: Oracle’s latest quarterly results exceeded expectations, with revenue up 20.6% year over year and EPS above consensus. Elevated call-option activity and bullish analyst commentary also indicate improving near-term sentiment.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on ORCL shares. Sanford C. Bernstein increased their price target on shares of Oracle from $319.00 to $325.00 and gave the stock an "outperform" rating in a research note on Thursday, June 11th. Piper Sandler increased their price objective on shares of Oracle from $210.00 to $225.00 and gave the company an "overweight" rating in a research report on Thursday, June 11th. TD Cowen boosted their price target on Oracle from $250.00 to $300.00 and gave the stock a "buy" rating in a research note on Monday, June 8th. Oppenheimer increased their price objective on shares of Oracle from $235.00 to $275.00 and gave the company an "outperform" rating in a research note on Monday, June 8th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and issued a $284.00 target price on shares of Oracle in a research report on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $265.03.

Oracle Stock Up 2.7%

The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12. The stock has a market capitalization of $419.74 billion, a P/E ratio of 24.99, a PEG ratio of 0.82 and a beta of 1.72. The stock's fifty day moving average is $162.86 and its two-hundred day moving average is $163.71.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating 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 during the quarter, compared to analyst estimates of $19.10 billion. During the same period in the prior year, the firm earned $1.70 earnings per share. The business's quarterly 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 predict that Oracle Corporation will post 6.47 earnings per share for the current fiscal year.

Oracle Dividend Announcement

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

Insider Buying and Selling

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of the business'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 completion of the transaction, the insider owned 400,000 shares of the company's stock, valued at $63,664,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by company insiders.

Institutional Trading of Oracle

A number of hedge funds have recently modified their holdings of ORCL. Norges Bank bought a new stake in shares of Oracle in the 4th quarter valued at $4,336,031,000. Capital Research Global Investors increased its stake in Oracle by 29.3% during the 4th quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider's stock valued at $5,874,070,000 after purchasing an additional 6,826,299 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Oracle by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider's stock worth $34,070,674,000 after acquiring an additional 5,841,584 shares during the last quarter. Cardano Risk Management B.V. increased its stake in Oracle by 882.3% in the 4th quarter. Cardano Risk Management B.V. now owns 4,991,010 shares of the enterprise software provider's stock valued at $972,798,000 after buying an additional 4,482,934 shares during the last quarter. Finally, FIL Ltd boosted its position in Oracle by 1,605.7% in the fourth quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider's stock worth $775,048,000 after purchasing an additional 3,743,314 shares during the last quarter. 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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