TD Cowen Cuts Oracle (NYSE:ORCL) Price Target to $240.00

Oracle (NYSE:ORCL) had its target price cut by TD Cowen from $300.00 to $240.00 in a research note published on Tuesday morning,Benzinga reports. They currently have a buy rating on the enterprise software provider’s stock.

Several other research firms have also recently weighed in on ORCL. UBS Group reiterated an “outperform” rating on shares of Oracle in a report on Friday, August 21st. Sanford C. Bernstein upped their price objective on shares of Oracle from $319.00 to $325.00 and gave the stock an “outperform” rating in a report on Thursday, June 11th. CLSA began coverage on shares of Oracle in a research report on Monday, July 20th. They issued a “hold” rating and a $145.00 target price for the company. Citigroup reaffirmed a “buy” rating on shares of Oracle in a research note on Wednesday, August 26th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $284.00 price target on shares of Oracle in a research report on Thursday, June 11th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $261.61.

Oracle Stock Performance

Oracle stock opened at $154.50 on Tuesday. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 3.21. The firm has a market cap of $445.03 billion, a P/E ratio of 26.50, a P/E/G ratio of 1.08 and a beta of 1.74. Oracle has a 1-year low of $114.50 and a 1-year high of $345.72. The firm has a 50-day moving average of $139.54 and a 200-day moving average of $160.32.

Oracle (NYSE:ORCL) last issued its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, topping analysts’ consensus estimates of $1.96 by $0.15. The firm had revenue of $19.18 billion for the quarter, compared to analyst estimates of $19.10 billion. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The business’s quarterly revenue was up 20.6% compared to the same quarter last year. During the same period last year, the company earned $1.70 EPS. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. Sell-side analysts expect that Oracle will post 6.49 EPS for the current year.

Oracle Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were given a $0.50 dividend. The ex-dividend date of this dividend was Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 1.3%. Oracle’s dividend payout ratio is 34.31%.

Insider Buying and Selling

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle 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 sale, the insider owned 400,000 shares of the company’s stock, valued at approximately $63,664,000. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 40.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. California State Teachers Retirement System lifted its stake in Oracle by 14,636.4% during the 2nd quarter. California State Teachers Retirement System now owns 382,756,945 shares of the enterprise software provider’s stock valued at $56,093,030,000 after acquiring an additional 380,159,589 shares during the period. State Street Corp grew its stake in shares of Oracle by 4.4% in the fourth quarter. State Street Corp now owns 76,527,759 shares of the enterprise software provider’s stock worth $14,916,026,000 after acquiring an additional 3,216,915 shares during the period. Geode Capital Management LLC raised its holdings in shares of Oracle by 1.8% during the fourth 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 purchasing an additional 665,374 shares during the last quarter. Capital Research Global Investors raised its holdings in shares of Oracle by 29.3% during the fourth quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider’s stock valued at $5,874,070,000 after purchasing an additional 6,826,299 shares during the last quarter. Finally, Morgan Stanley lifted its position in Oracle by 1.9% during the fourth quarter. Morgan Stanley now owns 27,125,099 shares of the enterprise software provider’s stock valued at $5,286,953,000 after purchasing an additional 495,146 shares during the period. 42.44% of the stock is owned by institutional investors.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Analysts see substantial upside: Jefferies maintained a Buy rating and set a $290 price target, while other analysts remain optimistic that Oracle’s AI-cloud growth can offset concerns about elevated spending and leverage. Bernstein also expects a potential recovery toward the company’s prior high. Oracle Stock Could Be Software’s Next Big Winner
• Positive Sentiment: Lower interest rates could provide outsized relief: Oracle has taken on tens of billions of dollars in debt to finance AI data-center construction. A lower-rate environment could reduce financing costs and improve the economics of its capital-intensive expansion. Why Is Oracle Stock Up Today?
• Positive Sentiment: AI infrastructure demand remains strong: Oracle is expanding its multi-year relationship with Hewlett Packard Enterprise to deploy Juniper networking equipment across global AI data centers. The arrangement supports Oracle’s planned infrastructure buildout and could improve visibility into future capacity expansion. HPE and Oracle Deepen Networking Collaboration
• Neutral Sentiment: Upcoming earnings are the next major test: Investors will look for evidence that Oracle’s large cloud backlog is converting into revenue, along with updates on capital expenditures, debt and AI-cloud margins. The company’s latest reported quarter exceeded EPS and revenue estimates, but the market now expects execution against significantly higher AI-related expectations. Oracle Sets Earnings Date
• Negative Sentiment: Debt and spending remain key risks: Oracle’s heavy AI-data-center investment has contributed to rising leverage and negative free cash flow concerns. Analysts have lowered some price targets, including TD Cowen’s reduction to $240, while investors remain cautious about whether future cloud growth will justify the spending. TD Cowen Lowers Oracle Price Target

About Oracle

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.