Oracle (NYSE:ORCL) Reaches New 1-Year Low - What's Next?

Key Points

• Oracle shares fell to a new 52-week low of $111.66, down from the prior close of $123.73.
• Oracle reportedly abandoned a roughly $7 billion chip-leasing deal with Tencent after U.S. government pushback, raising concerns about geopolitical limits on its international AI business.
• Investors are weighing a $20 billion financing plan—split between stock and debt, prompting dilution and leverage concerns—against bullish analyst views; UBS reiterated Buy with a $250 target.

Oracle Corporation (NYSE:ORCL - Get Free Report)'s stock price hit a new 52-week low during trading on Thursday. The company traded as low as $111.66 and last traded at $114.95, with a volume of 21,953,915 shares changing hands. The stock had previously closed at $123.73.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: UBS reiterated its Buy rating and $250 price target, arguing that concerns about AI demand and supply are overstated. Other bullish coverage points to Oracle’s ambitious cloud and AI growth plans, including its long-term revenue targets. Oracle gets UBS backing
• Neutral Sentiment: Oracle reportedly walked away from a five-year, roughly $7 billion chip-leasing agreement with Tencent after U.S. government pushback. Some coverage describes the contract as modest relative to Oracle’s backlog, but its cancellation raises the possibility that other China-linked business could face scrutiny. Reuters report on the Tencent deal
• Negative Sentiment: The Tencent deal’s collapse removes a sizable prospective AI contract and underscores uncertainty around Oracle’s ability to serve international AI customers amid geopolitical restrictions. Oracle’s $7 billion AI deal collapses
• Negative Sentiment: Investors are also assessing Oracle’s $20 billion financing package—about $10 billion in stock and $10 billion in debt, with some bonds carrying high coupons. The equity sale raises dilution concerns, while borrowing adds to questions about leverage, capital spending and future cash flow. Oracle faces questions after its funding plan

Analysts Set New Price Targets

Several analysts have issued reports on ORCL shares. KeyCorp set a $285.00 price objective on Oracle in a report on Friday, September 11th. Citizens Jmp reissued a "market outperform" rating and issued a $285.00 target price on shares of Oracle in a research report on Friday, October 2nd. Stifel Nicolaus dropped their target price on shares of Oracle from $220.00 to $200.00 and set a "buy" rating on the stock in a research report on Friday, September 11th. DA Davidson restated a "buy" rating and set a $225.00 price target on shares of Oracle in a report on Friday, September 11th. Finally, UBS Group upped their price target on shares of Oracle from $245.00 to $250.00 and gave the company a "buy" rating in a research report on Friday, September 11th. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Oracle has an average rating of "Moderate Buy" and a consensus target price of $249.27.

Oracle Price Performance

The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 1.89. The stock has a market capitalization of $350.22 billion, a price-to-earnings ratio of 18.24, a P/E/G ratio of 0.99 and a beta of 1.79. The company's 50-day simple moving average is $140.51 and its 200 day simple moving average is $156.10.

Oracle (NYSE:ORCL - Get Free Report) last posted its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.74 by $0.18. Oracle had a net margin of 26.36% and a return on equity of 48.85%. The business had revenue of $19.34 billion during the quarter, compared to the consensus estimate of $19.13 billion. During the same period in the prior year, the firm earned $1.47 EPS. Oracle's quarterly revenue was up 29.6% compared to the same quarter last year. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. Equities research analysts forecast that Oracle Corporation will post 6.72 EPS for the current year.

Oracle Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Friday, October 9th were issued a $0.50 dividend. The ex-dividend date of this dividend was Friday, October 9th. This represents a $2.00 annualized dividend and a dividend yield of 1.7%. Oracle's payout ratio is 31.35%.

Insiders Place Their Bets

In related news, EVP Maria Smith sold 2,631 shares of the stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $151.70, for a total transaction of $399,122.70. Following the completion of the transaction, the executive vice president directly owned 64,357 shares in the company, valued at approximately $9,762,956.90. This trade represents a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Stephen H. Rusckowski acquired 25,000 shares of the stock in a transaction dated Tuesday, September 29th. The stock was acquired at an average price of $139.35 per share, for a total transaction of $3,483,750.00. Following the completion of the acquisition, the director directly owned 25,390 shares of the company's stock, valued at $3,538,096.50. The trade was a 6,410.26% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 36,075 shares of company stock worth $5,342,123 over the last ninety days. 38.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Oracle

Several hedge funds have recently modified their holdings of ORCL. Sherman Asset Management Inc. grew its stake in shares of Oracle by 5.5% in the first quarter. Sherman Asset Management Inc. now owns 1,054 shares of the enterprise software provider's stock valued at $155,000 after buying an additional 55 shares in the last quarter. Gould Asset Management LLC CA raised its stake in shares of Oracle by 2.0% during the first quarter. Gould Asset Management LLC CA now owns 3,172 shares of the enterprise software provider's stock valued at $467,000 after purchasing an additional 62 shares during the period. One Charles Private Wealth Services LLC lifted its holdings in Oracle by 1.6% in the 1st quarter. One Charles Private Wealth Services LLC now owns 3,859 shares of the enterprise software provider's stock worth $568,000 after buying an additional 62 shares in the last quarter. Main Street Group LTD grew its stake in shares of Oracle by 3.9% during the first quarter. Main Street Group LTD now owns 1,662 shares of the enterprise software provider's stock valued at $245,000 after acquiring an additional 63 shares in the last quarter. Finally, Capstone Financial Advisors Inc. increased its position in shares of Oracle by 3.6% during the second quarter. Capstone Financial Advisors Inc. now owns 1,809 shares of the enterprise software provider's stock worth $265,000 after acquiring an additional 63 shares during the last quarter. Institutional investors own 42.44% of the company's stock.

About Oracle

Oracle Corporation NYSE: ORCL is a global technology company that develops enterprise software, cloud infrastructure and database technologies. Its products help organizations store, manage, analyze and secure data, while supporting business operations across industries and geographies.

The company's offerings include Oracle Database, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud-based applications. These applications serve functions such as enterprise resource planning, financial management, human resources, supply-chain management, customer experience and industry-specific operations.

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