Oracle (NYSE:ORCL) Stock Price Up 1.8% – Still a Buy?

Shares of Oracle Corporation (NYSE:ORCL) were up 1.8% during mid-day trading on Friday . The company traded as high as $128.44 and last traded at $126.48. 39,691,737 shares traded hands during trading, an increase of 36% from the average daily volume of 29,101,211 shares. The stock had previously closed at $124.21.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Negative Sentiment: New Mexico regulators blocked a key natural gas pipeline permit needed to support Oracle’s large data-center project, raising the risk of delays and added costs. New Mexico Blocks Pipeline for Oracle’s (ORCL) 2.5 GW Data Center Project
• Negative Sentiment: Several reports highlighted investor worries that Oracle’s heavy AI spending is pressuring cash flow, pushing its credit rating closer to junk and increasing reliance on debt financing for data-center expansion. Oracle’s (ORCL) AI Spending Spree Pushes Its Credit Rating Near Junk
• Negative Sentiment: Coverage also noted rising concern that Oracle may need to tap bond markets for massive funding needs, which adds balance-sheet and refinancing risk even as AI demand remains strong. Big Tech Firms Like Oracle Turn to Bonds to Finance A.I. Data Centers
• Negative Sentiment: Commentary and analyst pieces say Oracle’s stock has been hit hard by the market’s reassessment of the AI trade, with the selloff reflecting concern that current fundamentals may not justify the scale of spending. Oracle: Endure The Pain Before The Turnaround Begins
• Neutral Sentiment: Some bullish commentary argues Oracle’s record cloud backlog and AI demand could drive a rebound, but these arguments are being outweighed near term by debt and execution concerns. 2 Reasons Oracle Stock Could Double in Value by 2028

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on ORCL shares. BTIG Research restated a “buy” rating and issued a $400.00 price target on shares of Oracle in a report on Friday, June 5th. Morgan Stanley reiterated a “mixed” rating on shares of Oracle in a research report on Thursday, June 11th. Sanford C. Bernstein upped their target price on Oracle from $319.00 to $325.00 and gave the company an “outperform” rating in a report on Thursday, June 11th. Weiss Ratings upgraded Oracle from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, May 29th. Finally, Mizuho set a $320.00 price target on Oracle in a research note on Wednesday, June 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $268.27.

Oracle Trading Up 1.8%

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 business has a 50 day moving average of $178.69 and a 200-day moving average of $169.76. The stock has a market cap of $364.32 billion, a PE ratio of 21.69, a price-to-earnings-growth ratio of 0.83 and a beta of 1.72.

Oracle (NYSE:ORCL) last released its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, topping the consensus estimate of $1.96 by $0.15. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The company had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter last year, the business posted $1.70 earnings per share. Oracle’s revenue was up 20.6% compared to the same quarter last year. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. On average, analysts anticipate that Oracle Corporation will post 6.47 EPS for the current year.

Oracle Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Friday, July 10th. 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 the company’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total value of $63,664,000.00. Following the transaction, the insider directly owned 400,000 shares in the company, valued at approximately $63,664,000. This 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. Insiders own 40.90% of the company’s stock.

Hedge Funds Weigh In On Oracle

A number of institutional investors have recently modified their holdings of ORCL. HFM Investment Advisors LLC grew its stake in Oracle by 290.9% in the 4th quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock worth $25,000 after acquiring an additional 96 shares during the period. Basepoint Wealth LLC acquired a new stake in shares of Oracle during the fourth quarter worth $26,000. FSA Wealth Management LLC acquired a new stake in shares of Oracle during the third quarter worth $28,000. Osbon Capital Management LLC purchased a new stake in shares of Oracle in the fourth quarter valued at $28,000. Finally, Joseph Group Capital Management acquired a new position in Oracle in the fourth quarter valued at $29,000. Institutional investors and hedge funds own 42.44% of the company’s stock.

Oracle Company Profile

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.