Oracle (NYSE:ORCL) Shares Down 4.1% Following Weak Earnings

Oracle Co. (NYSE:ORCL)’s share price fell 4.1% during trading on Monday following a dissappointing earnings announcement. The company traded as low as $147.13 and last traded at $148.77. 4,310,383 shares changed hands during trading, a decline of 62% from the average session volume of 11,447,529 shares. The stock had previously closed at $155.16.

The enterprise software provider reported $1.47 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.01). Oracle had a net margin of 21.16% and a return on equity of 133.25%. The company had revenue of $14.13 billion for the quarter, compared to analysts’ expectations of $14.40 billion. During the same quarter last year, the firm posted $1.41 earnings per share. Oracle’s revenue for the quarter was up 6.4% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on ORCL. Guggenheim reaffirmed a “buy” rating and set a $220.00 price objective on shares of Oracle in a report on Wednesday, March 5th. JMP Securities reaffirmed a “market outperform” rating and set a $205.00 price target on shares of Oracle in a research note on Wednesday, January 22nd. BMO Capital Markets lifted their price objective on shares of Oracle from $173.00 to $205.00 and gave the stock a “market perform” rating in a research note on Tuesday, December 10th. Stifel Nicolaus raised their price objective on Oracle from $155.00 to $175.00 and gave the company a “hold” rating in a research note on Tuesday, December 10th. Finally, KeyCorp boosted their target price on Oracle from $190.00 to $200.00 and gave the company an “overweight” rating in a research report on Friday, November 15th. Eleven analysts have rated the stock with a hold rating, nineteen have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $182.73.

Insider Activity at Oracle

In other Oracle news, CEO Safra Catz sold 2,101,154 shares of the stock in a transaction on Wednesday, January 22nd. The stock was sold at an average price of $185.35, for a total transaction of $389,448,893.90. Following the sale, the chief executive officer now owns 1,118,592 shares of the company’s stock, valued at approximately $207,331,027.20. This trade represents a 65.26 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 42.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Oracle

A number of hedge funds have recently made changes to their positions in the stock. R Squared Ltd acquired a new position in shares of Oracle during the fourth quarter worth $25,000. Sunbeam Capital Management LLC purchased a new stake in Oracle in the fourth quarter valued at about $30,000. Winch Advisory Services LLC grew its stake in shares of Oracle by 89.7% during the fourth quarter. Winch Advisory Services LLC now owns 184 shares of the enterprise software provider’s stock worth $31,000 after acquiring an additional 87 shares during the last quarter. Hurley Capital LLC purchased a new position in shares of Oracle in the 4th quarter valued at approximately $33,000. Finally, Synergy Investment Management LLC acquired a new stake in Oracle in the 4th quarter worth approximately $34,000. 42.44% of the stock is currently owned by hedge funds and other institutional investors.

Oracle Stock Performance

The firm’s 50-day simple moving average is $167.63 and its two-hundred day simple moving average is $169.51. The company has a market cap of $416.38 billion, a PE ratio of 36.40, a P/E/G ratio of 3.46 and a beta of 1.07. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 5.65.

About Oracle

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing.