Oracle (NYSE:ORCL) Stock Price Up 4.3% - Still a Buy?

Key Points

• Oracle shares rose 4.3% on Monday, reaching an intraday high of $195.32 as investors reacted positively to renewed optimism around the stock.
• Analysts and recent news continue to highlight Oracle’s AI cloud growth potential, including strong demand for Oracle Fusion Cloud and a large pipeline backed by a record $638 billion in remaining performance obligations.
• Despite the upbeat outlook, some investors remain cautious about heavy AI infrastructure spending and funding needs, with concerns that margin pressure and near-term returns could limit upside.

Oracle Corporation (NYSE:ORCL - Get Free Report)'s share price rose 4.3% on Monday . The company traded as high as $195.32 and last traded at $192.11. Approximately 19,849,031 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 27,423,316 shares. The stock had previously closed at $184.13.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle stock is bouncing back as bullish analysts point to its AI cloud infrastructure opportunity and argue the recent selloff may have been overdone. Why Is Oracle Stock Surging On Monday?
• Positive Sentiment: The company continues to benefit from strong demand for Oracle Fusion Cloud and related AI-powered applications, including a new contract with Canada’s Centre for Addiction and Mental Health to expand its Oracle footprint. The Centre for Addiction and Mental Health Optimizes Operations and Patient Care with Oracle Fusion Cloud Applications
• Positive Sentiment: Oracle’s record $638 billion in remaining performance obligations underscores a large pipeline of future revenue, suggesting demand for its cloud and AI offerings remains strong. Oracle Is (ORCL) Down Despite Revealing $638 Billion Worth Of Orders, Is The Market Wrong On This One?
• Neutral Sentiment: Oracle is drawing attention for its new AI pricing models, which could improve customer adoption and monetization, but the market is still evaluating the impact on margins and growth. Oracle’s New AI Pricing Models And What They Could Mean For ORCL
• Negative Sentiment: Investors remain worried about Oracle’s heavy capital needs for AI infrastructure, with some reports saying the company plans to raise about $40 billion through debt and equity, which pressured the stock after earnings. Oracle's Q4 Double Beat Shouldn't Have Sent Shares Down By 10. What Spooked Investors?
• Negative Sentiment: Recent analyst caution, including a price-target cut from Scotiabank, shows that Wall Street still has concerns about Oracle’s funding needs and near-term returns on its AI spending. Is Oracle (ORCL) One of the Best S&P 500 Dividend Stocks to Buy Right Now?

Wall Street Analysts Forecast Growth

A number of research firms have commented on ORCL. Mizuho set a $320.00 target price on Oracle in a research report on Wednesday, June 3rd. BTIG Research reiterated a "buy" rating and set a $400.00 target price on shares of Oracle in a research report on Friday, June 5th. Moffett Nathanson set a $325.00 target price on Oracle in a research report on Thursday. Royal Bank Of Canada restated a "sector perform" rating and set a $190.00 price target on shares of Oracle in a research note on Thursday. Finally, TD Cowen increased their target price on Oracle from $250.00 to $300.00 and gave the company a "buy" rating in a research note on Monday, June 8th. Three equities 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 assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $268.27.

Oracle Trading Up 4.3%

The company has a debt-to-equity ratio of 2.84, a quick ratio of 1.35 and a current ratio of 1.12. The business has a fifty day simple moving average of $184.68 and a 200 day simple moving average of $177.77. The company has a market cap of $552.52 billion, a P/E ratio of 32.95, a P/E/G ratio of 1.18 and a beta of 1.65.

Oracle (NYSE:ORCL - Get Free Report) last released 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 the consensus estimate of $19.10 billion. Oracle had a return on equity of 56.43% and a net margin of 25.37%.Oracle's quarterly revenue was up 20.6% compared to the same quarter last year. During the same quarter last year, the business posted $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. Analysts anticipate that Oracle Corporation will post 6.32 earnings per share for the current fiscal year.

Oracle Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be given a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 1.0%. The ex-dividend date is Friday, July 10th. Oracle's dividend payout ratio (DPR) is currently 34.31%.

Insider Buying and Selling

In related news, EVP Stuart Levey sold 15,000 shares of the firm'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 sale, the executive vice president directly owned 3,429 shares in the company, valued at $604,155.51. This trade represents a 81.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Oracle

Several large investors have recently added to or reduced their stakes in ORCL. Norges Bank acquired a new stake in Oracle in the 4th quarter valued at approximately $4,336,031,000. Capital Research Global Investors increased its position in shares of 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 during the period. Vanguard Group Inc. increased its position in shares of Oracle by 3.5% during the 4th quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider's stock valued at $34,070,674,000 after purchasing an additional 5,841,584 shares during the period. Cardano Risk Management B.V. increased its position in shares of Oracle by 882.3% during 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 purchasing an additional 4,482,934 shares during the period. Finally, American Century Companies Inc. increased its position in shares of Oracle by 333.7% during the 3rd quarter. American Century Companies Inc. now owns 5,238,006 shares of the enterprise software provider's stock valued at $1,473,137,000 after purchasing an additional 4,030,382 shares during the period. 42.44% of the stock is currently owned by institutional investors and hedge funds.

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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