Oracle (NYSE:ORCL) Shares Climb 8.9% - Here's Why

Key Points

• Oracle shares rose 8.9% to about $128.46 in heavy trading, with volume 24% above its average.
• Investor sentiment was buoyed by CoreWeave’s results and financing plans, which eased concerns about AI infrastructure debt, as well as Oracle’s outlook for strong cloud demand and major data-center expansion. The company projects positive free cash flow in the second half of fiscal 2028 and more than $30 billion in fiscal 2029.
• Analysts’ average rating is “Moderate Buy,” with an average price target of $249.27, though views vary; Morgan Stanley recently downgraded the stock to underweight while several firms maintain Buy ratings.

Oracle Corporation (NYSE:ORCL - Get Free Report) was up 8.9% on Wednesday. The stock traded as high as $130.77 and last traded at $128.4580. Approximately 38,022,799 shares were traded during mid-day trading, an increase of 24% from the average daily volume of 30,709,543 shares. The stock had previously closed at $117.98.

Trending Headlines about Oracle

Investors following ORCL have been watching these headlines:

• Positive Sentiment: CoreWeave beat quarterly expectations, raised its guidance and said it would rely less on unsecured borrowing and more on funding sources such as customer prepayments. That helped calm worries about debt across AI infrastructure providers, including Oracle. Why Oracle Stock Is Up Today
• Positive Sentiment: Oracle CFO Hilary Maxson pointed to strong cloud demand and plans to add 7 gigawatts of data-center capacity. She also projected positive free cash flow in the second half of fiscal 2028 and more than $30 billion in fiscal 2029, supporting the case that heavy investment can eventually translate into cash generation. Oracle CFO: Cloud Demand Strong As Company Touts Growth Targets
• Positive Sentiment: Bernstein’s $325 price target reflects the view that Oracle’s selloff has gone too far and that investor concerns could ease. Separately, Oracle said its Opower programs helped utilities achieve a record 1 gigawatt of peak-demand reduction, highlighting another use for its software and AI capabilities. Bernstein’s $325 Target Says Oracle’s Selloff Went Too Far Utilities Achieve Record Peak Energy AI-Powered Demand Reduction with Oracle

Analysts Set New Price Targets

Several analysts have commented on the stock. TD Cowen reiterated a "buy" rating and set a $240.00 target price on shares of Oracle in a research report on Thursday, October 29th. Citigroup restated a "market outperform" rating on shares of Oracle in a research report on Thursday, October 29th. Morgan Stanley cut Oracle from a "positive" rating to an "underweight" rating in a research note on Monday, November 2nd. BMO Capital Markets dropped their price objective on Oracle from $220.00 to $195.00 and set an "outperform" rating for the company in a report on Friday, September 11th. Finally, Stifel Nicolaus cut their target price on Oracle from $220.00 to $200.00 and set a "buy" rating on the stock in a research note on Friday, September 11th. One analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Oracle currently has an average rating of "Moderate Buy" and an average price target of $249.27.

Oracle Trading Up 8.9%

The business has a 50 day simple moving average of $137.85 and a 200-day simple moving average of $154.83. The stock has a market capitalization of $388.42 billion, a price-to-earnings ratio of 20.13, a PEG ratio of 0.84 and a beta of 1.79. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.17 and a quick ratio of 1.17.

Oracle (NYSE:ORCL - Get Free Report) last released its quarterly earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, topping analysts' consensus estimates of $1.74 by $0.18. Oracle had a return on equity of 48.85% and a net margin of 26.36%. The company had revenue of $19.34 billion for the quarter, compared to analyst estimates of $19.13 billion. During the same quarter last year, the firm posted $1.47 earnings per share. Oracle's 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. As a group, equities analysts expect that Oracle Corporation will post 6.71 earnings per share for the current year.

Oracle Announces Dividend

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. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Friday, October 9th. Oracle's payout ratio is 31.35%.

Insider Activity

In other news, Director Stephen H. Rusckowski bought 25,000 shares of the company's stock in a transaction that occurred on Tuesday, September 29th. The shares were acquired at an average price of $139.35 per share, with a total value of $3,483,750.00. Following the transaction, the director owned 25,390 shares in the company, valued at $3,538,096.50. This represents a 6,410.26% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Maria Smith sold 2,631 shares of the business's stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total value of $399,122.70. Following the completion of the sale, the executive vice president owned 64,357 shares in the company, valued at $9,762,956.90. The trade was a 3.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 36,075 shares of company stock worth $5,342,123 over the last three months. Corporate insiders own 38.40% of the company's stock.

Institutional Trading of Oracle

A number of institutional investors have recently made changes to their positions in the business. Pilgrim Partners Asia Pte Ltd bought a new stake in Oracle during the 3rd quarter worth about $25,000. Foresight Capital Management Advisors Inc. acquired a new stake in shares of Oracle in the third quarter valued at about $26,000. North Point Portfolio Managers Corp OH acquired a new stake in shares of Oracle in the third quarter valued at about $27,000. Persistent Asset Partners Ltd bought a new stake in Oracle during the second quarter worth about $29,000. Finally, Strengthening Families & Communities LLC raised its holdings in Oracle by 231.3% during the third quarter. Strengthening Families & Communities LLC now owns 222 shares of the enterprise software provider's stock worth $30,000 after acquiring an additional 155 shares in the last quarter. Institutional investors own 42.44% of the company's stock.

About Oracle

Oracle Corporation is a technology company that develops and provides database software, cloud services, and enterprise applications. Its products help organizations manage data, run business operations, and build and deploy applications. Oracle's offerings include Oracle Database, Oracle Cloud Infrastructure, and cloud-based applications for functions such as finance, human resources, supply chain management, and customer experience. The company also provides software support, consulting, and related services.

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