Oracle (NYSE:ORCL) Stock Price Down 9.1% - Here's Why

Key Points

• Oracle shares fell 9.1% to about $118.79 in heavy trading, with volume nearly doubling the average daily level.
• Investor concerns appear tied to Oracle’s substantial AI spending and the timing of profitability, despite its outlook for positive free cash flow in the second half of fiscal 2028 and declining capital expenditures.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $249.27; recent targets range from $195 to $240, while Stephens upgraded the stock and set a $213 target.

Shares of Oracle Corporation (NYSE:ORCL - Get Free Report) fell 9.1% during mid-day trading on Monday. The company traded as low as $118.43 and last traded at $118.7930. 58,001,359 shares traded hands during mid-day trading, an increase of 94% from the average daily volume of 29,873,809 shares. The stock had previously closed at $130.67.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Stephens upgraded Oracle to “overweight” from “equal weight” and raised its price target to $213, implying substantial upside from current levels. Stephens upgrades Oracle
• Positive Sentiment: Oracle’s investor-day outlook points to positive free cash flow in the second half of fiscal 2028, declining capital expenditures and a stated limit on additional AI-related fundraising through fiscal 2030. Those targets could support a recovery if AI revenue growth eventually catches up with spending. Oracle AI spending outlook
• Positive Sentiment: Some analysts and market commentary view Oracle as an undervalued AI infrastructure beneficiary, with its forward valuation below several consumer and technology companies. Hyperscaler valuations
• Positive Sentiment: Oracle partner Rapidflow’s acquisition of GreenCube expands capabilities in Oracle enterprise performance management and business intelligence across the Asia-Pacific and Middle East markets, potentially supporting ecosystem growth. Rapidflow acquires GreenCube

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. TD Cowen restated a "buy" rating and issued a $240.00 target price on shares of Oracle in a research note on Thursday. Stifel Nicolaus dropped their price target on Oracle from $220.00 to $200.00 and set a "buy" rating on the stock in a report on Friday, September 11th. BMO Capital Markets cut their price objective on Oracle from $220.00 to $195.00 and set an "outperform" rating on the stock in a research report on Friday, September 11th. Citigroup restated a "market outperform" rating on shares of Oracle in a research note on Thursday. Finally, Robert W. Baird set a $215.00 target price on Oracle in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $249.27.

Oracle Trading Down 9.1%

The firm has a 50 day moving average of $141.81 and a 200 day moving average of $157.19. The firm has a market cap of $359.20 billion, a PE ratio of 18.62, a P/E/G ratio of 0.91 and a beta of 1.79. 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 released its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.74 by $0.18. The business had revenue of $19.34 billion during the quarter, compared to the consensus estimate of $19.13 billion. Oracle had a return on equity of 48.85% and a net margin of 26.36%. The business's revenue for the quarter was up 29.6% on a year-over-year basis. During the same period 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 analysts anticipate that Oracle Corporation will post 6.72 earnings per share for the current year.

Oracle Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Friday, October 9th were paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Friday, October 9th. Oracle's dividend payout ratio is presently 31.35%.

Insider Buying and Selling

In other Oracle news, EVP Maria Smith sold 2,631 shares of the business's stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total transaction of $399,122.70. Following the sale, the executive vice president owned 64,357 shares of the company's stock, valued at $9,762,956.90. The trade was a 3.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Stephen Rusckowski bought 25,000 shares of the stock in a transaction on Tuesday, September 29th. The shares were acquired at an average cost of $139.35 per share, for a total transaction of $3,483,750.00. Following the acquisition, the director directly owned 25,390 shares in the company, valued at approximately $3,538,096.50. This trade represents a 6,410.26% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders sold 36,075 shares of company stock valued at $5,342,123. Company insiders own 38.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. StrongBox Wealth LLC raised its position in Oracle by 9.0% during the third quarter. StrongBox Wealth LLC now owns 17,989 shares of the enterprise software provider's stock valued at $2,470,000 after purchasing an additional 1,490 shares in the last quarter. MMA Asset Management LLC boosted its holdings in shares of Oracle by 11.0% in the 3rd quarter. MMA Asset Management LLC now owns 3,043 shares of the enterprise software provider's stock worth $418,000 after purchasing an additional 302 shares in the last quarter. Capstone Wealth Management LLC increased its position in shares of Oracle by 65.1% during the 3rd quarter. Capstone Wealth Management LLC now owns 3,083 shares of the enterprise software provider's stock valued at $423,000 after purchasing an additional 1,216 shares during the last quarter. Pathway Financial Advisers LLC bought a new position in shares of Oracle during the 3rd quarter valued at about $118,000. Finally, Chicago Partners Investment Group LLC raised its holdings in shares of Oracle by 19.2% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 53,659 shares of the enterprise software provider's stock valued at $6,770,000 after buying an additional 8,655 shares in 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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