Oracle (NYSE:ORCL) Vice Chairman Sells 400,000 Shares

Key Points

• Oracle Vice Chairman Jeffrey Henley sold 400,000 shares on June 24 at an average price of $159.16, a transaction worth about $63.7 million. The sale was made under a pre-arranged Rule 10b5-1 trading plan, and his stake was cut by 50%.
• Oracle shares were under pressure, falling 2.5% in mid-day trading to $148.68 amid heavier-than-normal volume. The stock is still well below its 50-day and 200-day moving averages.
• Despite the insider sale and recent weakness, analysts remain broadly bullish on Oracle, with a consensus “Moderate Buy” rating and average price target of $268.27. The company also recently beat earnings expectations and maintains a quarterly dividend of $0.50 per share.

Oracle Corporation (NYSE:ORCL - Get Free Report) Vice Chairman Jeffrey Henley sold 400,000 shares of the company's stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the transaction, the insider owned 400,000 shares in the company, valued at approximately $63,664,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Oracle Stock Down 2.5%

ORCL stock traded down $3.78 during mid-day trading on Friday, reaching $148.68. 36,107,595 shares of the company traded hands, compared to its average volume of 27,535,232. The firm's 50 day moving average price is $189.96 and its 200 day moving average price is $175.88. Oracle Corporation has a fifty-two week low of $134.57 and a fifty-two week high of $345.72. The stock has a market cap of $428.27 billion, a price-to-earnings ratio of 25.50, a P/E/G ratio of 0.99 and a beta of 1.65. The company has a quick ratio of 1.35, a current ratio of 1.12 and a debt-to-equity ratio of 3.21.

Oracle (NYSE:ORCL - Get Free Report) last announced its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating the consensus estimate of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The company had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter in the prior year, the company posted $1.70 earnings per share. The firm's revenue for the quarter was up 20.6% on a year-over-year basis. 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, equities research analysts predict that Oracle Corporation will post 6.46 EPS for the current fiscal year.

Oracle Announces Dividend

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 given a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 1.3%. Oracle's dividend payout ratio (DPR) is currently 34.31%.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s record $638 billion backlog continues to support long-term revenue visibility, suggesting demand for its cloud infrastructure and AI services remains strong. Oracle's Contract Backlog Swells: Is Long-Term Revenue Growth Secured?
• Positive Sentiment: Oracle Health announced a partnership with Theator to automate surgical reporting using AI and Oracle Cloud Infrastructure, highlighting new real-world use cases for its AI platform. Oracle Health (ORCL), Theator Partner to Automate Surgical Reporting with AI
• Neutral Sentiment: Wall Street sentiment remains broadly positive, with one article citing 36 buy ratings and a view that Oracle could have significant upside if AI demand continues to compound. Wall Street Has 36 Buy Ratings on Oracle. Here’s How We See 47% Upside
• Negative Sentiment: OpenAI IPO delay fears added to the AI sector selloff, weighing on Oracle along with other AI-linked names as investors reassessed near-term enthusiasm for the trade. OpenAI May Push Back Highly-Anticipated IPO to 2027, Slamming SoftBank and Oracle Shares
• Negative Sentiment: Bearish commentary also focused on Oracle’s aggressive AI spending and job cuts, with critics arguing the company is becoming more capital intensive while trying to justify its valuation. Oracle's AI Spend Outruns Cloud Revenues: What's Ahead for the Stock?

Hedge Funds Weigh In On Oracle

A number of large investors have recently added to or reduced their stakes in the business. Xponance Inc. raised its stake in shares of Oracle by 1.8% in the 3rd quarter. Xponance Inc. now owns 406,544 shares of the enterprise software provider's stock valued at $114,336,000 after acquiring an additional 7,320 shares during the period. DDD Partners LLC acquired a new stake in Oracle in the 4th quarter valued at $1,677,000. William Blair Investment Management LLC lifted its stake in shares of Oracle by 28.6% during the third quarter. William Blair Investment Management LLC now owns 1,107,586 shares of the enterprise software provider's stock worth $311,497,000 after purchasing an additional 246,243 shares in the last quarter. New Mexico Educational Retirement Board boosted its position in shares of Oracle by 4.2% in the fourth quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider's stock worth $14,928,000 after buying an additional 3,100 shares during the period. Finally, KADENSA CAPITAL Ltd grew its stake in shares of Oracle by 1,945.8% in the third quarter. KADENSA CAPITAL Ltd now owns 92,736 shares of the enterprise software provider's stock valued at $26,081,000 after buying an additional 88,203 shares in the last quarter. Hedge funds and other institutional investors own 42.44% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Mizuho set a $320.00 price target on Oracle in a research report on Wednesday, June 3rd. Wolfe Research restated an "outperform" rating and set a $225.00 target price on shares of Oracle in a research report on Thursday, June 11th. TD Cowen raised their price target on Oracle from $250.00 to $300.00 and gave the company a "buy" rating in a report on Monday, June 8th. DA Davidson boosted their price objective on Oracle from $200.00 to $225.00 and gave the stock a "buy" rating in a report on Thursday, June 11th. Finally, Stephens reaffirmed an "equal weight" rating and issued a $164.00 target price on shares of Oracle in a research note 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 issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Oracle currently has a consensus rating of "Moderate Buy" and an average target price of $268.27.

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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