Oracle (NYSE:ORCL) Trading 1.2% Higher - Should You Buy?

Key Points

• Oracle's stock recently traded up by 1.2%, reaching a high of $287.19 before closing at $283.45, with a notable 17% decline in trading volume compared to the average session.
• Analysts have mostly rated Oracle as a Moderate Buy, with a consensus price target of $323.69, while three analysts give a Strong Buy rating.
• The company announced a quarterly dividend of $0.50 per share, with a current annualized yield of 0.7%, reflecting a payout ratio of 46.30%.

Oracle Corporation (NYSE:ORCL - Get Free Report) traded up 1.2% during trading on Friday . The company traded as high as $287.19 and last traded at $283.45. 12,737,914 shares changed hands during trading, a decline of 17% from the average session volume of 15,332,936 shares. The stock had previously closed at $280.07.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. Royal Bank Of Canada reiterated a "sector perform" rating and set a $310.00 price target on shares of Oracle in a report on Friday, October 17th. Evercore ISI lifted their price target on shares of Oracle from $350.00 to $385.00 and gave the stock an "outperform" rating in a report on Friday, October 17th. Bank of America upgraded shares of Oracle from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $295.00 to $368.00 in a report on Wednesday, September 10th. BMO Capital Markets set a $355.00 price target on shares of Oracle and gave the stock an "outperform" rating in a report on Monday, October 13th. Finally, DA Davidson lifted their price target on shares of Oracle from $220.00 to $300.00 and gave the stock a "neutral" rating in a report on Wednesday, September 10th. Three research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $323.69.

Oracle Price Performance

The company's 50-day moving average is $273.89 and its 200-day moving average is $219.28. The company has a debt-to-equity ratio of 3.33, a current ratio of 0.62 and a quick ratio of 0.62. The firm has a market capitalization of $808.05 billion, a price-to-earnings ratio of 65.61, a PEG ratio of 2.93 and a beta of 1.53.

Oracle (NYSE:ORCL - Get Free Report) last released its earnings results on Tuesday, September 9th. The enterprise software provider reported $1.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.48 by ($0.01). The company had revenue of $14.93 billion during the quarter, compared to analyst estimates of $15.04 billion. Oracle had a return on equity of 72.93% and a net margin of 21.08%.Oracle's revenue was up 12.2% on a year-over-year basis. During the same period in the prior year, the business posted $1.39 earnings per share. Oracle has set its Q2 2026 guidance at 1.270-1.310 EPS. On average, research analysts expect that Oracle Corporation will post 5 earnings per share for the current year.

Oracle Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 23rd. Shareholders of record on Thursday, October 9th were given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Thursday, October 9th. Oracle's payout ratio is 46.30%.

Insider Activity

In other Oracle news, Director William G. Parrett sold 11,500 shares of Oracle stock in a transaction that occurred on Friday, September 12th. The shares were sold at an average price of $306.00, for a total transaction of $3,519,000.00. Following the transaction, the director directly owned 17,764 shares of the company's stock, valued at $5,435,784. The trade was a 39.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Michael D. Sicilia sold 33,845 shares of Oracle stock in a transaction that occurred on Tuesday, September 23rd. The shares were sold at an average price of $321.16, for a total transaction of $10,869,660.20. Following the transaction, the insider directly owned 132,656 shares in the company, valued at approximately $42,603,800.96. This trade represents a 20.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 170,769 shares of company stock valued at $50,297,667 over the last quarter. 40.90% of the stock is owned by insiders.

Institutional Trading of Oracle

A number of hedge funds have recently made changes to their positions in ORCL. Redmont Wealth Advisors LLC purchased a new stake in shares of Oracle during the first quarter valued at approximately $27,000. Winnow Wealth LLC purchased a new stake in shares of Oracle during the second quarter valued at approximately $28,000. Iron Horse Wealth Management LLC raised its stake in shares of Oracle by 284.9% during the first quarter. Iron Horse Wealth Management LLC now owns 204 shares of the enterprise software provider's stock valued at $29,000 after purchasing an additional 151 shares during the period. Kilter Group LLC purchased a new stake in shares of Oracle during the second quarter valued at approximately $30,000. Finally, Darwin Wealth Management LLC raised its stake in shares of Oracle by 130.0% during the third quarter. Darwin Wealth Management LLC now owns 115 shares of the enterprise software provider's stock valued at $32,000 after purchasing an additional 65 shares during the period. Hedge funds and other institutional investors 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.

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