Oracle (NYSE:ORCL) Trading 1.9% Higher - Still a Buy?

Key Points

• Oracle Corporation's shares rose 1.9% to a trading price of $240.37, although trading volume decreased by 76% compared to the average.
• Mizuho upgraded Oracle's price target significantly from $245.00 to $300.00, indicating a bullish outlook on the stock.
• The enterprise software provider reported a quarterly earnings per share of $1.70, exceeding analyst expectations and showing a revenue increase of 11.3% year-over-year.

Oracle Corporation (NYSE:ORCL - Get Free Report) shares traded up 1.9% during trading on Thursday . The company traded as high as $240.50 and last traded at $240.37. 2,810,901 shares traded hands during trading, a decline of 76% from the average session volume of 11,825,983 shares. The stock had previously closed at $235.81.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on ORCL. Mizuho raised their price target on Oracle from $245.00 to $300.00 and gave the company an "outperform" rating in a research report on Friday, August 15th. Stifel Nicolaus upgraded shares of Oracle from a "hold" rating to a "buy" rating and raised their target price for the company from $180.00 to $250.00 in a report on Monday, June 30th. Royal Bank Of Canada upped their price target on shares of Oracle from $145.00 to $195.00 and gave the company a "sector perform" rating in a report on Thursday, June 12th. BMO Capital Markets raised their price objective on shares of Oracle from $235.00 to $245.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 2nd. Finally, Roth Capital restated a "hold" rating on shares of Oracle in a research report on Wednesday, June 18th. Three research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, Oracle currently has an average rating of "Moderate Buy" and an average price target of $227.04.

Oracle Price Performance

The company's 50-day moving average is $236.89 and its 200-day moving average is $184.08. The firm has a market capitalization of $675.23 billion, a price-to-earnings ratio of 55.37, a PEG ratio of 3.50 and a beta of 1.43. The company has a debt-to-equity ratio of 4.07, a current ratio of 0.75 and a quick ratio of 0.75.

Oracle (NYSE:ORCL - Get Free Report) last issued its quarterly earnings results on Wednesday, June 11th. The enterprise software provider reported $1.70 EPS for the quarter, topping the consensus estimate of $1.64 by $0.06. The firm had revenue of $15.90 billion during the quarter, compared to analyst estimates of $15.58 billion. Oracle had a net margin of 21.68% and a return on equity of 87.34%. Oracle's revenue for the quarter was up 11.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.63 earnings per share. On average, research analysts expect that Oracle Corporation will post 5 earnings per share for the current year.

Oracle Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 24th. Investors of record on Thursday, July 10th were issued a $0.50 dividend. The ex-dividend date was Thursday, July 10th. This represents a $2.00 dividend on an annualized basis and a yield of 0.8%. Oracle's dividend payout ratio (DPR) is presently 46.08%.

Insider Activity at Oracle

In other Oracle news, Director Rona Alison Fairhead purchased 480 shares of the business's stock in a transaction that occurred on Monday, July 7th. The shares were purchased at an average price of $233.87 per share, for a total transaction of $112,257.60. Following the completion of the acquisition, the director owned 22,110 shares of the company's stock, valued at approximately $5,170,865.70. This represents a 2.22% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Naomi O. Seligman sold 3,303 shares of the business's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $233.32, for a total transaction of $770,655.96. Following the sale, the director owned 31,447 shares of the company's stock, valued at approximately $7,337,214.04. This represents a 9.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 444,183 shares of company stock valued at $86,521,198 over the last three months. Insiders own 42.20% of the company's stock.

Hedge Funds Weigh In On Oracle

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Brighton Jones LLC raised its holdings in shares of Oracle by 189.3% during the 4th quarter. Brighton Jones LLC now owns 153,580 shares of the enterprise software provider's stock valued at $25,593,000 after buying an additional 100,494 shares during the period. Revolve Wealth Partners LLC grew its position in Oracle by 8.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 5,418 shares of the enterprise software provider's stock valued at $903,000 after acquiring an additional 404 shares in the last quarter. Emerald Mutual Fund Advisers Trust purchased a new stake in shares of Oracle during the fourth quarter valued at approximately $128,000. Utah Retirement Systems lifted its position in shares of Oracle by 0.3% during the fourth quarter. Utah Retirement Systems now owns 260,641 shares of the enterprise software provider's stock worth $43,433,000 after purchasing an additional 700 shares in the last quarter. Finally, Voleon Capital Management LP acquired a new stake in Oracle during the 4th quarter valued at $9,033,000. Institutional investors and hedge funds own 42.44% of the company's stock.

Oracle Company Profile

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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