Oracle (NYSE:ORCL) Shares Up 3.3% – Still a Buy?

Oracle Corporation (NYSE:ORCL)’s stock price was up 3.3% during mid-day trading on Monday. The stock traded as high as $120.26 and last traded at $119.9390. 27,376,595 shares traded hands during trading, a decline of 11% from the average daily volume of 30,708,133 shares. The stock had previously closed at $116.10.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oppenheimer identified Oracle among the software companies positioned to benefit from AI, reinforcing the bullish view that its cloud infrastructure and software business can capture AI-related growth. Article: Microsoft, Oracle, SAP considered AI winners among software companies
• Positive Sentiment: ETFs bought $111.1 million of Oracle shares on Thursday, a sign of institutional fund demand that may help support the stock. Article: ETFs Are Buying Oracle
• Positive Sentiment: One Seeking Alpha contributor argues that fewer data-center permits could ultimately be beneficial, potentially limiting excess infrastructure buildout. This is an opinion-based counterpoint to concerns about Oracle’s AI expansion. Article: Oracle: Fewer Datacenter Permits Could Be A Good Thing
• Neutral Sentiment: Oracle announced a $1.55 million grant for a Nashville community hub renovation and redevelopment. The grant supports community initiatives but is unlikely to materially affect Oracle’s financial outlook. Article: Oracle’s $1.55 Million Grant Helps Trinity Community Commons
• Negative Sentiment: Microsoft is reportedly winding down an Oracle infrastructure arrangement used for an AI-supported version of Bing, involving older Nvidia chips. The loss raises questions about demand for Oracle’s AI capacity, though the report does not quantify the financial impact. Article: Microsoft reportedly winds down Oracle AI infrastructure contract
• Negative Sentiment: Recent bearish commentary points to Oracle’s fundraising needs, debt-funded AI infrastructure buildout and uncertainty around major projects. A Seeking Alpha contributor downgraded the stock, while another report noted ING plans to sell data-center loans that include a large Oracle-related AI project. Article: Oracle: A Turnaround Is Not Imminent Article: Is Oracle Losing Ground In AI Infrastructure Demand?
• Negative Sentiment: Oracle’s abandoned $7 billion Tencent chip deal adds uncertainty, and one report says the stock is on pace for its worst calendar year since 2001. That history may interest contrarian investors, but it does not establish that a rebound is imminent. Article: Oracle Just Walked Away From a $7 Billion Tencent Deal Article: Oracle Stock Is on Pace for Its Worst Year Since 2001

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on ORCL shares. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Oracle in a research note on Thursday, September 10th. Robert W. Baird set a $215.00 price target on Oracle in a research report on Thursday, October 29th. DZ Bank reaffirmed a “buy” rating on shares of Oracle in a report on Thursday, September 17th. Jefferies Financial Group reissued a “buy” rating and set a $290.00 price target (down from $320.00) on shares of Oracle in a research report on Thursday, September 10th. Finally, Morgan Stanley cut shares of Oracle from a “positive” rating to an “underweight” rating in a research note on Monday, November 2nd. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating, six have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, Oracle currently has an average rating of “Moderate Buy” and a consensus price target of $249.27.

Oracle Price Performance

The company has a market cap of $362.66 billion, a PE ratio of 18.80, a P/E/G ratio of 0.81 and a beta of 1.79. The stock has a 50-day simple moving average of $139.11 and a 200 day simple moving average of $155.40. 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) last released its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, beating the consensus estimate of $1.74 by $0.18. The company 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%. Oracle’s revenue was up 29.6% compared to the same quarter last year. During the same period in the previous year, the company posted $1.47 EPS. 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 expect that Oracle Corporation will post 6.71 EPS for the current year.

Oracle Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Friday, October 9th were given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Friday, October 9th. Oracle’s dividend payout ratio (DPR) is 31.35%.

Insiders Place Their Bets

In other Oracle news, CEO Michael Sicilia sold 22,562 shares of the firm’s stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $151.59, for a total transaction 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Rusckowski acquired 25,000 shares of Oracle stock in a transaction dated Tuesday, September 29th. The shares were bought at an average price of $139.35 per share, with a total value of $3,483,750.00. Following the transaction, the director directly owned 25,390 shares in the company, valued at approximately $3,538,096.50. The trade was a 6,410.26% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have sold 36,075 shares of company stock valued at $5,342,123. 38.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Oracle

Institutional investors and hedge funds have recently bought and sold shares of the stock. Sherman Asset Management Inc. increased its holdings in shares of Oracle by 5.5% in the 1st quarter. Sherman Asset Management Inc. now owns 1,054 shares of the enterprise software provider’s stock valued at $155,000 after acquiring an additional 55 shares during the period. Gould Asset Management LLC CA boosted its stake in Oracle by 2.0% during the 1st quarter. Gould Asset Management LLC CA now owns 3,172 shares of the enterprise software provider’s stock worth $467,000 after purchasing an additional 62 shares during the period. One Charles Private Wealth Services LLC boosted its stake in Oracle by 1.6% during the 1st quarter. One Charles Private Wealth Services LLC now owns 3,859 shares of the enterprise software provider’s stock worth $568,000 after purchasing an additional 62 shares during the period. Main Street Group LTD boosted its stake in Oracle by 3.9% during the 1st quarter. Main Street Group LTD now owns 1,662 shares of the enterprise software provider’s stock worth $245,000 after purchasing an additional 63 shares during the period. Finally, Capstone Financial Advisors Inc. grew its position in Oracle by 3.6% during the 2nd quarter. Capstone Financial Advisors Inc. now owns 1,809 shares of the enterprise software provider’s stock worth $265,000 after purchasing an additional 63 shares during the last quarter. 42.44% of the stock is owned by hedge funds and other institutional investors.

About Oracle

Oracle Corporation is a technology company that develops and provides database software, cloud services, and enterprise applications. Its products help organizations manage data, run business operations, and build and deploy applications.

Oracle’s offerings include Oracle Database, Oracle Cloud Infrastructure, and cloud-based applications for functions such as finance, human resources, supply chain management, and customer experience. The company also provides software support, consulting, and related services.

Founded in 1977 as Software Development Laboratories, Oracle serves businesses and public-sector organizations across geographies worldwide.