Oracle (NYSE:ORCL) Stock Price Down 3.3% Following Insider Selling

Key Points

• Oracle shares fell 3.3% to roughly $139.76 after CEO Michael Sicilia sold 22,562 shares worth $3.42 million and EVP Maria Smith sold 2,631 shares worth $399,123. Both transactions were conducted under disclosed trading plans.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $252.58, supported by Oracle’s quarterly revenue growth of 29.6% and strong cloud expansion.
• Investor concerns include uncertainty surrounding the New Mexico data-center project, heavy AI-related capital spending, negative free cash flow and higher debt-financing costs, despite Oracle maintaining its long-term cloud growth outlook.

Shares of Oracle Corporation (NYSE:ORCL - Get Free Report) fell 3.3% during trading on Thursday after an insider sold shares in the company. The company traded as low as $133.48 and last traded at $139.7640. 56,232,290 shares were traded during trading, an increase of 91% from the average session volume of 29,468,561 shares. The stock had previously closed at $144.56.

Specifically, CEO Michael Sicilia sold 22,562 shares of the firm's stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $151.59, for a total value of $3,420,173.58. Following the sale, the chief executive officer owned 182,929 shares of the company's stock, valued at approximately $27,730,207.11. This trade represents a 10.98% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Maria Smith sold 2,631 shares of the company's stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $151.70, for a total value of $399,122.70. Following the transaction, the executive vice president owned 64,357 shares of the company's stock, valued at approximately $9,762,956.90. The trade was a 3.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure.

Wall Street Analyst Weigh In

ORCL has been the topic of a number of recent research reports. Wedbush cut their target price on Oracle from $275.00 to $240.00 and set an "outperform" rating on the stock in a research note on Thursday, June 11th. CLSA assumed coverage on shares of Oracle in a research report on Monday, July 20th. They set a "hold" rating and a $145.00 price target for the company. Guggenheim reaffirmed a "buy" rating and issued a $400.00 price objective on shares of Oracle in a report on Tuesday, September 8th. Argus reiterated a "buy" rating and issued a $225.00 price objective on shares of Oracle in a research report on Monday, September 14th. Finally, Freedom Broker reduced their target price on shares of Oracle from $210.00 to $205.00 and set a "buy" rating for the company in a research note on Monday, September 14th. Two 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 given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $252.58.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s long-term growth story remains supported by strong recent results: quarterly revenue rose nearly 30%, while cloud revenue increased 62% and infrastructure-cloud revenue more than doubled. A William Blair analyst also reaffirmed a Buy rating, viewing the New Mexico setback as temporary. Oracle Buy Rating Reaffirmed
• Positive Sentiment: New product announcements in digital-asset banking, oncology electronic health records, revenue-cycle management and life-sciences analytics could expand Oracle’s recurring cloud and software revenue over time. Oracle Digital Assets Data Nexus
• Neutral Sentiment: Oracle said its force majeure notice does not cancel Project Jupiter and that the New Mexico data center remains on schedule, but the move signals uncertainty around construction timing and contractual obligations. Oracle New Mexico Stargate Data Center
• Negative Sentiment: Oracle reportedly sent the notice to Project Jupiter’s developer, a Blue Owl Capital unit, seeking to defer payments or protect itself if the facility is not operational by 2028. Regulatory delays, local opposition and construction uncertainty have raised concerns about a major AI growth project and Oracle’s ability to convert its backlog into revenue. Oracle Force Majeure Notice
• Negative Sentiment: Investors are also reassessing the economics of Oracle’s AI buildout. Heavy capital spending, negative free cash flow and debt financing carrying a reported 37-basis-point premium suggest higher borrowing costs and greater pressure on near-term cash generation. Oracle AI Debt Financing Costs

Oracle Trading Down 3.3%

The firm has a market capitalization of $422.61 billion, a P/E ratio of 21.91, a PEG ratio of 1.06 and a beta of 1.74. The business's 50 day moving average is $142.39 and its two-hundred day moving average is $160.34. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 1.89.

Oracle (NYSE:ORCL - Get Free Report) last announced its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.74 by $0.18. Oracle had a net margin of 26.36% and a return on equity of 48.85%. The firm had revenue of $19.34 billion during the quarter, compared to analyst estimates of $19.13 billion. During the same quarter in the prior year, the firm posted $1.47 EPS. 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. Analysts expect that Oracle Corporation will post 6.67 EPS for the current year.

Oracle Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Friday, October 9th. Oracle's dividend payout ratio (DPR) is currently 31.35%.

Institutional Investors Weigh In On Oracle

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. QRG Capital Management Inc. lifted its position in Oracle by 12.9% in the second quarter. QRG Capital Management Inc. now owns 300,056 shares of the enterprise software provider's stock worth $43,973,000 after purchasing an additional 34,397 shares during the period. Envestnet Portfolio Solutions Inc. increased its position in shares of Oracle by 13.8% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 117,271 shares of the enterprise software provider's stock valued at $17,186,000 after purchasing an additional 14,208 shares during the period. Premier Financial Group bought a new stake in shares of Oracle in the 2nd quarter worth $101,000. Security National Bank of Sioux City Iowa IA raised its stake in shares of Oracle by 42.1% in the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 31,833 shares of the enterprise software provider's stock worth $4,665,000 after buying an additional 9,424 shares in the last quarter. Finally, Bullseye Investment Management LLC acquired a new stake in shares of Oracle in the second quarter valued at $1,676,000. Institutional investors own 42.44% of the company's stock.

Oracle Company Profile

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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