Oracle (NYSE:ORCL) Trading 3.5% Higher - Still a Buy?

Key Points

• Oracle shares rose 3.5% in Wednesday trading, with volume surging well above average as investors reacted to renewed interest in the stock.
• Positive catalysts included Oracle being reported as a front-runner for a highly classified cloud contract with the Japanese government and the launch of an AI-native builder for Fusion Applications, both of which support its cloud and AI growth story.
• Despite the bounce, Oracle still faces bearish concerns around heavy AI infrastructure spending, rising debt, and execution risk, even as analysts maintain a Moderate Buy consensus with an average price target of $268.27.

Shares of Oracle Corporation (NYSE:ORCL - Get Free Report) shot up 3.5% during mid-day trading on Wednesday . The stock traded as high as $133.90 and last traded at $132.3550. 48,233,332 shares were traded during mid-day trading, an increase of 67% from the average daily volume of 28,826,076 shares. The stock had previously closed at $127.94.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle reportedly emerged as the frontrunner for a highly classified cloud infrastructure contract with the Japanese government, a potentially meaningful win that would validate its security-focused cloud offering and expand its enterprise/government footprint. Oracle leads race to supply Japan with top-secret cloud services
• Positive Sentiment: Oracle also announced an AI-native builder for Fusion Applications, extending its push into agentic AI tools inside its core cloud software platform and potentially supporting future growth in AI-related cloud revenue. Oracle Introduces AI-Native Builder Experience to Create and Run Agentic Applications in Oracle Fusion Applications
• Positive Sentiment: Loews Hotels expanded its Oracle OPERA Cloud rollout, another example of Oracle winning customer adoption for its cloud applications in the hospitality sector. Oracle OPERA Cloud Central Implements Additional Systems to Further Loews Hotels Delivery of Exceptional Guest Experiences
• Neutral Sentiment: Several articles framed Oracle as a deeply discounted AI/cloud play after the recent selloff, suggesting some investors see rebound potential, but these pieces were mostly opinion-driven rather than new fundamental catalysts. Oracle Stock Is Down 60%: Why Its AI Cloud Explosion Makes It a Compelling Buy
• Negative Sentiment: Oracle remains under pressure from worries about heavy AI infrastructure spending, rising debt, and execution risk, with multiple reports highlighting doubts about whether its backlog can be converted into cash fast enough. Here's Why Oracle Stock Slumped Today
• Negative Sentiment: Sentiment was also hurt by the launch of inverse leveraged ETFs on ORCL, which underscores bearish trader positioning and reflects how volatile the stock has become. Tradr's 2X Short Leveraged ETFs on AAOI and ORCL Begin Trading

Analysts Set New Price Targets

Several brokerages have recently weighed in on ORCL. Scotiabank restated an "overweight" rating on shares of Oracle in a report on Thursday, June 11th. Wedbush dropped their target price on Oracle from $275.00 to $240.00 and set an "outperform" rating on the stock in a report on Thursday, June 11th. Cantor Fitzgerald reissued an "overweight" rating and set a $284.00 price target on shares of Oracle in a research report on Thursday, June 11th. Mizuho set a $320.00 price target on Oracle in a research note on Wednesday, June 3rd. Finally, Barclays boosted their price target on Oracle from $240.00 to $250.00 and gave the stock an "overweight" rating in a research report on Thursday, June 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Oracle currently has an average rating of "Moderate Buy" and a consensus price target of $268.27.

Oracle Stock Performance

The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.12 and a current ratio of 1.12. The stock's fifty day moving average price is $181.33 and its 200-day moving average price is $170.74. The company has a market capitalization of $381.24 billion, a P/E ratio of 22.70, a PEG ratio of 0.83 and a beta of 1.72.

Oracle (NYSE:ORCL - Get Free Report) last issued its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.96 by $0.15. The business had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. Oracle had a net margin of 25.37% and a return on equity of 58.62%. Oracle's revenue was up 20.6% on a year-over-year basis. During the same period 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. As a group, research analysts anticipate that Oracle Corporation will post 6.47 EPS for the current fiscal year.

Oracle Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Friday, July 10th. Oracle's payout ratio is currently 34.31%.

Insider Buying and Selling

In related news, EVP Stuart Levey sold 15,000 shares of the business'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 transaction of $2,642,850.00. Following the transaction, the executive vice president directly owned 3,429 shares of the company's stock, valued at approximately $604,155.51. The trade was a 81.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total value of $63,664,000.00. Following the completion of the sale, the insider owned 400,000 shares in the company, valued at approximately $63,664,000. This trade represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Oracle

Several large investors have recently modified their holdings of the stock. Norges Bank bought a new stake in Oracle in the 4th quarter valued at $4,336,031,000. Capital Research Global Investors increased its position 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 worth $5,874,070,000 after buying an additional 6,826,299 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Oracle by 3.5% during the fourth quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider's stock worth $34,070,674,000 after buying an additional 5,841,584 shares in the last quarter. Cardano Risk Management B.V. lifted its holdings in shares of Oracle by 882.3% during the fourth quarter. Cardano Risk Management B.V. now owns 4,991,010 shares of the enterprise software provider's stock worth $972,798,000 after buying an additional 4,482,934 shares in the last quarter. Finally, FIL Ltd boosted its position in shares of Oracle by 1,605.7% in the fourth quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider's stock valued at $775,048,000 after acquiring an additional 3,743,314 shares during the period. 42.44% of the stock is owned by institutional investors.

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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