Oracle (NYSE:ORCL) Stock Price Down 7.1% – Time to Sell?

Oracle Corporation (NYSE:ORCL) shares dropped 7.1% on Thursday. The stock traded as low as $111.66 and last traded at $114.8840. 54,433,393 shares changed hands during trading, an increase of 78% from the average daily volume of 30,586,479 shares. The stock had previously closed at $123.73.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle received the strongest valuation grade among seven major technology companies in a comparison following the sector selloff, potentially drawing interest from investors looking for relative value. Article: Oracle beats Microsoft and Amazon on a key Wall Street metric
• Neutral Sentiment: Scotiabank lowered its fiscal 2027 EPS estimate to $6.63 from $6.73, but kept its Sector Outperform rating and $205 price target. The estimate cut tempers, but does not reverse, the analyst’s positive stance. Article: Scotiabank revises Oracle EPS estimate
• Neutral Sentiment: Oracle’s annual stockholder meeting is scheduled for November 18; the announcement did not identify a new business or earnings development. Article: Oracle’s annual meeting of stockholders
• Negative Sentiment: Microsoft is reportedly winding down its arrangement to rent AI computing capacity from Oracle. The news adds to concern that major customers may reassess AI infrastructure spending and could weigh on expectations for Oracle’s cloud growth. Article: Microsoft is winding down Oracle deal to rent AI cloud capacity
• Negative Sentiment: Broader doubts about the AI data-center build-out are also pressuring sentiment. Reports cite possible changes to OpenAI’s capacity plans, political scrutiny of data-center construction, and debt tied to a Stargate project—risks that could challenge the expected returns on Oracle’s substantial infrastructure investment. Article: OpenAI weighs smaller data-center plans

Wall Street Analyst Weigh In

Several research firms recently issued reports on ORCL. DA Davidson reiterated a “buy” rating and issued a $225.00 price objective on shares of Oracle in a report on Friday, September 11th. Melius Research set a $170.00 target price on Oracle in a report on Thursday, October 29th. Robert W. Baird set a $215.00 target price on Oracle in a research report on Thursday, October 29th. JPMorgan Chase & Co. restated a “buy” rating on shares of Oracle in a research report on Thursday, September 10th. Finally, Citizens Jmp reaffirmed a “market outperform” rating and issued a $285.00 price target on shares of Oracle in a research note on Friday, October 2nd. One 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 company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $249.27.

Oracle Stock Up 0.7%

The stock has a market capitalization of $350.64 billion, a price-to-earnings ratio of 18.18, a price-to-earnings-growth ratio of 0.83 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. The business’s 50-day moving average is $139.11 and its two-hundred day moving average is $155.40.

Oracle (NYSE:ORCL) last released its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, beating analysts’ consensus estimates 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 net margin of 26.36% and a return on equity of 48.85%. Oracle’s quarterly revenue was up 29.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $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 anticipate that Oracle Corporation will post 6.71 EPS for the current year.

Oracle Dividend Announcement

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

Insider Buying and Selling

In other news, CEO Michael D. Sicilia sold 22,562 shares of Oracle stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $151.59, for a total transaction of $3,420,173.58. Following the transaction, the chief executive officer owned 182,929 shares in the company, valued at $27,730,207.11. The trade was a 10.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen H. Rusckowski purchased 25,000 shares of the stock in a transaction dated Tuesday, September 29th. The shares were purchased at an average cost of $139.35 per share, for a total transaction of $3,483,750.00. Following the transaction, the director 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. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have sold 36,075 shares of company stock worth $5,342,123. 38.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Oracle

Hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of New York Mellon Corp purchased a new stake in shares of Oracle during the 2nd quarter valued at approximately $1,911,930,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Oracle in the second quarter worth approximately $625,454,000. Corient Private Wealth LP acquired a new stake in Oracle during the second quarter worth $186,175,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in Oracle during the third quarter worth $96,746,000. Finally, First Trust Advisors LP raised its position in Oracle by 23.3% in the first quarter. First Trust Advisors LP now owns 3,633,070 shares of the enterprise software provider’s stock valued at $534,461,000 after purchasing an additional 685,570 shares during the period. 42.44% of the stock is currently owned by institutional investors and hedge funds.

Oracle Company Profile

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.