Oracle (NYSE:ORCL) Stock Price Down 3.8% – Here’s What Happened

Oracle Corporation (NYSE:ORCL) shares were down 3.8% during trading on Friday . The company traded as low as $148.80 and last traded at $150.32. 21,778,560 shares were traded during mid-day trading, a decline of 26% from the average session volume of 29,476,678 shares. The stock had previously closed at $156.22.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle and Amazon Web Services expanded their long-term collaboration, with Oracle AI Database@AWS now available in 22 AWS regions. The offering includes Exadata-class performance and pay-per-use pricing, potentially accelerating enterprise cloud migrations and AI-related revenue. Oracle and AWS Deepen Strategic Collaboration
• Positive Sentiment: A multiyear partnership with Quantinuum will bring quantum-computing capabilities to Oracle Cloud Infrastructure. Although an early-stage opportunity, the deal broadens Oracle’s AI and cloud growth narrative and helped support investor interest. Quantinuum’s Cloud Deal With Oracle
• Neutral Sentiment: Oracle’s latest quarterly results exceeded expectations, with revenue rising 20.6% year over year and earnings surpassing consensus estimates. However, investors remain focused on whether growth can offset the capital requirements of Oracle’s AI infrastructure buildout.
• Neutral Sentiment: Technical coverage has identified the 50-day moving average as an important support or resistance level. This may encourage short-term trading activity but does not materially change the company’s fundamental outlook. Oracle Crossed Above the 50-Day Moving Average
• Negative Sentiment: Reports that Oracle is considering additional layoffs have heightened concerns about cash flow and operating pressure as the company funds aggressive AI data-center expansion. The spending is also increasing leverage and debt-servicing risk. Oracle Weighs Another Round of Job Cuts
• Negative Sentiment: Credit-downgrade concerns, higher bond-insurance costs and Oracle’s substantial debt burden are fueling fears that AI investment could strain its balance sheet. These concerns are the primary reason behind the recent sell-off. Oracle Junk Bond Fears and Debt Surge
• Negative Sentiment: Investor Michael Burry reportedly increased his short position in Oracle, arguing that excess AI-computing capacity could emerge by 2028. The high-profile bearish call adds pressure to a stock already facing skepticism about AI valuations and spending returns. Michael Burry Doubles Down on Oracle Shorts

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on ORCL shares. Morgan Stanley restated a “mixed” rating on shares of Oracle in a research note on Thursday, June 11th. Guggenheim reissued a “buy” rating on shares of Oracle in a research note on Thursday, July 23rd. Arete Research set a $255.00 target price on shares of Oracle and gave the company a “buy” rating in a report on Thursday, May 7th. BMO Capital Markets raised their price objective on Oracle from $200.00 to $220.00 and gave the stock an “outperform” rating in a research report on Thursday, June 11th. Finally, Royal Bank Of Canada restated a “sector perform” rating and set a $190.00 price target on shares of Oracle in a research report on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $263.97.

Oracle Price Performance

The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.12 and a current ratio of 1.12. The stock has a market cap of $432.99 billion, a price-to-earnings ratio of 25.78, a PEG ratio of 0.94 and a beta of 1.72. The company has a 50-day moving average of $149.89 and a 200-day moving average of $161.60.

Oracle (NYSE:ORCL) last announced its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, topping analysts’ consensus estimates of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The company had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter in the prior year, the firm earned $1.70 EPS. Oracle’s quarterly revenue was up 20.6% on a year-over-year basis. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, equities research analysts predict that Oracle Corporation will post 6.47 earnings per share for the current year.

Oracle Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were given a $0.50 dividend. The ex-dividend date was Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.3%. Oracle’s dividend payout ratio (DPR) is currently 34.31%.

Insiders Place Their Bets

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the completion of the transaction, the insider owned 400,000 shares in the company, valued at approximately $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 40.90% of the company’s stock.

Hedge Funds Weigh In On Oracle

Institutional investors have recently made changes to their positions in the stock. Norges Bank purchased a new position in shares of Oracle during the fourth quarter valued at approximately $4,336,031,000. Bank of New York Mellon Corp purchased a new stake in shares of Oracle during the 2nd quarter worth about $1,911,930,000. Capital Research Global Investors increased its position in shares of Oracle by 29.3% in the fourth quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider’s stock worth $5,874,070,000 after acquiring an additional 6,826,299 shares in the last quarter. Vanguard Group Inc. increased its holdings in Oracle by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider’s stock valued at $34,070,674,000 after purchasing an additional 5,841,584 shares in the last quarter. Finally, Cardano Risk Management B.V. grew its stake in shares of Oracle by 882.3% in the fourth quarter. Cardano Risk Management B.V. now owns 4,991,010 shares of the enterprise software provider’s stock valued at $972,798,000 after buying an additional 4,482,934 shares in the last quarter. 42.44% of the stock is owned by institutional investors and hedge funds.

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.