Oracle (NYSE:ORCL) Stock Price Down 3.1% After Analyst Downgrade

Key Points

• Oracle shares fell 3.1% to about $140 after Freedom Broker cut its price target from $210 to $205, while maintaining a buy rating. The stock remains rated “Moderate Buy” overall, with analysts’ average target at $252.58.
• Oracle’s latest quarter exceeded expectations, with revenue up 29.6% year over year to $19.34 billion and EPS of $1.92 versus the $1.74 consensus estimate. The company also reported strong cloud growth and issued fiscal 2027 guidance.
• Investors continue to weigh Oracle’s growth potential against financial risks. AI demand and a large backlog support the outlook, but aggressive infrastructure spending, potential financing needs, leverage and workforce reductions raise concerns about cash flow and execution.

Oracle Corporation (NYSE:ORCL - Get Free Report) was down 3.1% during trading on Tuesday after Freedom Broker lowered their price target on the stock from $210.00 to $205.00. Freedom Broker currently has a buy rating on the stock. Oracle traded as low as $140.02 and last traded at $140.37. 31,006,479 shares changed hands during mid-day trading, an increase of 6% from the average session volume of 29,306,924 shares. The stock had previously closed at $144.79.

A number of other brokerages also recently issued reports on ORCL. Evercore reiterated an "outperform" rating and set a $245.00 price objective on shares of Oracle in a research note on Monday, June 8th. Barclays lifted their price objective on shares of Oracle from $250.00 to $252.00 and gave the company an "overweight" rating in a research note on Friday. Stephens restated an "equal weight" rating and set a $175.00 target price on shares of Oracle in a research note on Friday. Royal Bank Of Canada decreased their price target on Oracle from $190.00 to $165.00 and set a "sector perform" rating on the stock in a research note on Friday. Finally, Mizuho set a $320.00 price objective on Oracle in a research report on Wednesday, June 3rd. Two research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $252.58.

Insider Activity

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total value of $63,664,000.00. Following the completion of the transaction, the insider directly owned 400,000 shares in the company, valued at approximately $63,664,000. This represents a 50.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 40.90% of the company's stock.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: AI demand and backlog remain substantial. Oracle’s fiscal first-quarter results exceeded expectations, with revenue rising about 30%, cloud revenue increasing 62% to approximately $11.6 billion, and remaining performance obligations/backlog reaching roughly $664 billion. This supports the long-term growth case, although investors want to see the backlog convert into cash flow. Oracle Has the Backlog. Wall Street Wants the Cash
• Positive Sentiment: Analysts continue to see recovery potential. Mizuho and other firms remain constructive, while Argus reaffirmed a “buy” rating with a $225 target and Freedom Broker maintained “buy” with a $205 target. These views reflect Oracle’s cloud opportunity and depressed valuation after the stock’s major decline over the past year. Oracle’s AI Fortress Goes Beyond OpenAI
• Positive Sentiment: New products and sustainability initiatives broaden the opportunity. Java 27 adds post-quantum security, AI and performance improvements, while Oracle is targeting carbon-free power for AI data centers by 2035 through a 1.7-gigawatt Texas wind investment. Oracle also won a technology-platform contract with Quorum Health. Oracle Releases Java 27
• Neutral Sentiment: Larry Ellison canceled a planned sale of up to 50 million shares, valued at approximately $7.5 billion. The move removes a potential source of selling pressure and may signal confidence, but it is not a company buyback or new investment. Larry Ellison cancels $7.5 billion sale
• Negative Sentiment: Layoffs are intensifying concerns about Oracle’s strategy. Oracle has begun another job-cutting round while spending aggressively on AI data centers. CFO commentary that employees should not simply be expected to “do more with less” underscores internal change and raises questions about execution and future restructuring costs. Oracle CFO comments after layoffs
• Negative Sentiment: Cash burn and leverage are the central risks. Reports highlight a potential $40 billion financing plan and more than $90 billion of planned AI infrastructure investment. Investors remain unconvinced that current earnings and customer deposits will quickly justify the spending, particularly if interest costs rise or major AI customers reduce commitments. Oracle’s $40 Billion Financing Plan

Institutional Trading of Oracle

A number of hedge funds have recently made changes to their positions in the company. Geode Capital Management LLC grew its stake in Oracle by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 37,734,944 shares of the enterprise software provider's stock valued at $7,328,754,000 after acquiring an additional 665,374 shares in the last quarter. Capital Research Global Investors lifted its stake in Oracle by 29.3% in the 4th quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider's stock worth $5,874,070,000 after purchasing an additional 6,826,299 shares in the last quarter. Norges Bank purchased a new position in Oracle in the 4th quarter worth approximately $4,336,031,000. Janus Henderson Group PLC boosted its holdings in shares of Oracle by 8.6% during the 4th quarter. Janus Henderson Group PLC now owns 14,539,366 shares of the enterprise software provider's stock worth $2,815,242,000 after purchasing an additional 1,148,698 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Oracle by 9.2% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,477,803 shares of the enterprise software provider's stock worth $2,626,959,000 after purchasing an additional 1,137,264 shares during the last quarter. 42.44% of the stock is owned by institutional investors and hedge funds.

Oracle Stock Down 3.1%

The company has a quick ratio of 1.12, a current ratio of 1.17 and a debt-to-equity ratio of 1.75. The business has a 50-day moving average price of $141.09 and a 200-day moving average price of $160.51. The firm has a market capitalization of $404.33 billion, a PE ratio of 22.00, a price-to-earnings-growth ratio of 1.10 and a beta of 1.74.

Oracle (NYSE:ORCL - Get Free Report) last announced its quarterly earnings data 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. The firm had revenue of $19.34 billion for the quarter, compared to the consensus estimate of $19.13 billion. Oracle had a return on equity of 47.43% and a net margin of 26.36%.The firm's revenue was up 29.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.47 earnings per share. 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 6.6 earnings per share for the current fiscal year.

Oracle Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be given a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. Oracle's payout ratio is presently 31.35%.

About Oracle

Oracle Corporation is a global enterprise technology company that develops and provides database software, cloud infrastructure, business applications and related technology services. Its offerings help organizations manage data, run applications, support business operations and build technology environments across on-premises, hybrid and cloud-based settings.

The company's products include Oracle Database, MySQL, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud applications for enterprise resource planning, financial management, human resources, supply chain management, customer experience and industry-specific operations.

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