Oracle (NYSE:ORCL) Trading Down 1.8% - Here's Why

Key Points

• Oracle's stock price decreased by 1.8%, closing at $249.34 after trading as low as $251.43, with a significant decline in trading volume of 79% from its average.
• Analysts have set varied price targets for Oracle, with Piper Sandler raising its target from $190.00 to $270.00 and an average rating of "Moderate Buy" among analysts.
• The company reported strong quarterly earnings of $1.70 EPS, beating expectations, along with a revenue increase of 11.3% year-over-year.

Shares of Oracle Corporation (NYSE:ORCL - Get Free Report) dropped 1.8% on Wednesday . The stock traded as low as $251.43 and last traded at $249.34. Approximately 2,555,741 shares were traded during trading, a decline of 79% from the average daily volume of 11,945,827 shares. The stock had previously closed at $253.86.

Analysts Set New Price Targets

ORCL has been the subject of several analyst reports. Piper Sandler upgraded Oracle from a "neutral" rating to an "overweight" rating and increased their target price for the company from $190.00 to $270.00 in a report on Thursday, July 10th. Cowen reaffirmed a "buy" rating on shares of Oracle in a research report on Thursday, June 12th. Guggenheim upped their price target on Oracle from $220.00 to $250.00 and gave the company a "buy" rating in a research report on Wednesday, June 18th. Barclays reaffirmed an "overweight" rating and set a $221.00 price target (up previously from $202.00) on shares of Oracle in a research report on Friday, June 13th. Finally, Mizuho lowered their price target on Oracle from $210.00 to $180.00 and set an "outperform" rating for the company in a research report on Tuesday, April 15th. Nine research analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and three have given a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $222.75.

Oracle Stock Down 3.7%

The company has a debt-to-equity ratio of 4.07, a current ratio of 0.75 and a quick ratio of 0.75. The stock has a market cap of $686.48 billion, a PE ratio of 56.31, a price-to-earnings-growth ratio of 3.77 and a beta of 1.43. The business has a fifty day moving average of $226.06 and a 200-day moving average of $178.76.

Oracle (NYSE:ORCL - Get Free Report) last announced its quarterly earnings results on Wednesday, June 11th. The enterprise software provider reported $1.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 return on equity of 87.34% and a net margin of 21.68%. Oracle's quarterly revenue was up 11.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.63 earnings per share. Equities research analysts anticipate that Oracle Corporation will post 5 earnings per share for the current year.

Oracle Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 24th. Stockholders of record on Thursday, July 10th were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Thursday, July 10th. Oracle's dividend payout ratio is currently 46.08%.

Insider Activity

In related news, insider Michael D. Sicilia sold 15,880 shares of the firm's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $254.48, for a total value of $4,041,142.40. Following the completion of the transaction, the insider owned 99,212 shares in the company, valued at $25,247,469.76. This trade represents a 13.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Rona Alison Fairhead bought 480 shares of Oracle stock in a transaction that occurred on Monday, July 7th. The stock was purchased at an average price of $233.87 per share, with a total value of $112,257.60. Following the purchase, the director directly owned 22,110 shares in the company, valued at $5,170,865.70. The trade was a 2.22% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders have sold 444,183 shares of company stock worth $86,521,198. Company insiders own 42.20% of the company's stock.

Institutional Investors Weigh In On Oracle

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Snider Financial Group raised its holdings in Oracle by 1.3% in the 2nd quarter. Snider Financial Group now owns 3,204 shares of the enterprise software provider's stock worth $701,000 after acquiring an additional 40 shares during the period. SNS Financial Group LLC raised its position in shares of Oracle by 0.9% during the second quarter. SNS Financial Group LLC now owns 4,896 shares of the enterprise software provider's stock valued at $1,070,000 after buying an additional 42 shares during the last quarter. PKS Advisory Services LLC raised its position in shares of Oracle by 1.9% during the second quarter. PKS Advisory Services LLC now owns 2,211 shares of the enterprise software provider's stock valued at $483,000 after buying an additional 42 shares during the last quarter. Reyes Financial Architecture Inc. raised its position in shares of Oracle by 7.2% during the second quarter. Reyes Financial Architecture Inc. now owns 643 shares of the enterprise software provider's stock valued at $141,000 after buying an additional 43 shares during the last quarter. Finally, Creative Capital Management Investments LLC raised its position in shares of Oracle by 5.7% during the second quarter. Creative Capital Management Investments LLC now owns 798 shares of the enterprise software provider's stock valued at $174,000 after buying an additional 43 shares during the last quarter. 42.44% of the stock is owned by institutional investors and hedge funds.

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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