Oracle (NYSE:ORCL) Shares Up 42.7% After Dividend Announcement

Key Points

• Shares of Oracle Corporation surged 42.7% following the announcement of a new dividend, trading as high as $344.60.
• The dividend of $0.50 per share will be issued on October 23rd, representing an annualized yield of 0.6%.
• Analysts maintain a positive outlook on Oracle, with a consensus rating of "Moderate Buy" and an average price target of $286.79.

Oracle Corporation (NYSE:ORCL - Get Free Report)'s stock price was up 42.7% on Wednesday after the company announced a dividend. The stock traded as high as $341.23 and last traded at $344.60. Approximately 58,304,020 shares were traded during trading, an increase of 373% from the average daily volume of 12,320,553 shares. The stock had previously closed at $241.51.

The newly announced dividend which will be paid on Thursday, October 23rd. Investors of record on Thursday, October 9th will be issued 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 is Thursday, October 9th. Oracle's payout ratio is presently 46.30%.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on ORCL. JMP Securities lifted their target price on Oracle from $315.00 to $342.00 and gave the stock a "market outperform" rating in a report on Wednesday. Melius Research lifted their target price on Oracle from $270.00 to $370.00 and gave the stock a "buy" rating in a report on Wednesday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $240.00 target price (up from $200.00) on shares of Oracle in a report on Thursday, June 12th. Roth Capital reaffirmed a "hold" rating on shares of Oracle in a report on Wednesday, June 18th. Finally, Cowen reissued a "buy" rating and issued a $375.00 price target on shares of Oracle in a research note on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $296.84.

Oracle Price Performance

The stock has a 50 day moving average of $244.69 and a two-hundred day moving average of $190.37. The stock has a market cap of $820.38 billion, a PE ratio of 67.61, a PEG ratio of 4.10 and a beta of 1.46. The company has a debt-to-equity ratio of 3.33, a quick ratio of 0.75 and a current ratio of 0.62.

Oracle (NYSE:ORCL - Get Free Report) last announced its quarterly earnings data on Wednesday, June 11th. The enterprise software provider reported $1.70 EPS for the quarter, topping analysts' consensus estimates of $1.64 by $0.06. Oracle had a return on equity of 72.93% and a net margin of 21.08%.The firm had revenue of $15.90 billion during the quarter, compared to analyst estimates of $15.58 billion. During the same period last year, the company posted $1.63 EPS. The business's quarterly revenue was up 11.3% compared to the same quarter last year. Equities analysts anticipate that Oracle Corporation will post 5 EPS for the current year.

Insider Activity

In other Oracle news, insider Michael D. Sicilia sold 15,880 shares of the firm's stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $254.48, for a total transaction of $4,041,142.40. Following the completion of the sale, the insider directly owned 99,212 shares in the company, valued at approximately $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 through this hyperlink. Also, insider Clayton M. Magouyrk sold 15,000 shares of the firm's stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $214.10, for a total value of $3,211,500.00. Following the sale, the insider owned 60,722 shares of the company's stock, valued at $13,000,580.20. The trade was a 19.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 44,183 shares of company stock worth $10,353,198. Corporate insiders own 42.20% of the company's stock.

Institutional Investors Weigh In On Oracle

Institutional investors have recently bought and sold shares of the business. Redmont Wealth Advisors LLC acquired a new stake in shares of Oracle during the 1st quarter valued at about $27,000. Inlight Wealth Management LLC acquired a new stake in shares of Oracle during the 1st quarter valued at about $28,000. Winnow Wealth LLC acquired a new stake in shares of Oracle during the 2nd quarter valued at about $28,000. Iron Horse Wealth Management LLC lifted its holdings in shares of Oracle by 284.9% during the 1st quarter. Iron Horse Wealth Management LLC now owns 204 shares of the enterprise software provider's stock valued at $29,000 after buying an additional 151 shares during the last quarter. Finally, Sunbeam Capital Management LLC acquired a new stake in shares of Oracle during the 4th quarter valued at about $30,000. 42.44% of the stock is currently 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.